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Fishery credit in Indonesia

Field document no. 1

Year of publication 1982

Pages 37 p.

Author Hotta, M.

Publisher FAO ;

Product type Project

Edition 1

Synopsis (short abstract) Indonesia ranks among the world's top 15 fishing nations with its yearly output of 1.8 million tons. Its fisheries, essentially of a small-scale nature, support the living of about 5 percent of its population and supply more than half of the country's low intake of animal protein, as well as making a positive contribution to the balance of payments. Adequate availability of credit is a requisite for a sustained growth of the fisheries sector, which offers scope for development in both marine and inland waters. Institutional, noninstitutional and private sources of funding available to smallscale fishermen in Java are analysed and their complementary function is described in this report. Inadequacies on the institutional side, such as insufficient total funding, a long time-lag between application for loan and its disbursement and conditions for granting a loan still leave ample space for usurious private moneylenders. The report focuses on credit granted by institutional sources. Mai n constraints are analysed, such as inadequate knowledge of the credit scheme by fishermen, lack of coordination between the head office of the Bank Rakyat Indonesia (BRI) and its branch offices, lack of follow-up action on the part of the loan granting institution, which results in low rates of repayment, high administrative cost and so on. Recommendations include a strengthening of the extension service (a project proposal is attached); a more vital functioning of fisheries cooperatives in in stitutional credit, coupled with the upgrading of their marketing infrastructure and facilities; implementation of socioeconomic studies concerning economic impacts rendered by credit programmes; better coordination between the Directorate General of Fisheries and Cooperative Department at all levels of administration and management; implementation of feasibility studies by BRI prior to the disbursement of loans; compilation of a manual on lending policies; project evaluation and appraisal, and utilization of agriculture training facilities for fisheries extension officers

Language English

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