ADB Approves $93 Million Loan for Indonesia Shrimp Farming Sector
MANILA — The Asian Development Bank (ADB) has approved a $93 million loan to enhance shrimp farming by smallholder farmers in seven provinces in Indonesia.
The Infrastructure Improvement for Shrimp Aquaculture Project will help the Ministry of Marine Affairs and Fisheries introduce sustainable shrimp aquaculture to boost the productivity, quality, profitability, and environmental sustainability of smallholders’ shrimp farming in the provinces of Bali, Banten, Central Java, East Java, Lampung, Nangro Aceh Darusalam, and South Sulawesi.
“Indonesia is a key player in the global shrimp market, ranking among the top five shrimp producers in the world with a global market share of 8.7% and export markets in the European Union, Japan, and the United States,” said ADB Principal Water Resources Specialist for Southeast Asia Eric Quincieu. “Through ADB’s assistance, we expect that sustainable aquaculture practices will help reduce pressure on the ecosystem while boosting productivity.”
The project will improve smallholder farmers’ access to quality inputs, production, and post-harvest practices and traceability through investments in climate adaptive infrastructure, capacity building, and strengthening of value chains. The project will also facilitate the transfer of knowledge in producing high-quality genetic shrimp fry to the Ministry of Marine Affairs and Fisheries to reduce reliance on imported brood stock.
About 5,200 smallholder farmers, including more than a thousand women farmers, will benefit from improved infrastructure and capacity. About 35,000 smallholder farmers, of which about 7,000 are women, will benefit from improved access to quality inputs and capacity building programs on sustainable and climate adaptive aquaculture. The project will also contribute to COVID-19 pandemic recovery by providing employment opportunities and promoting rural entrepreneurship.
The project is in line with the government’s National Medium-Term Development Plan, 2020–2024 and ADB’s country partnership strategy for Indonesia, 2020–2024, and its Action Plan for Healthy Oceans and Sustainable Blue Economies.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.