Indonesia Fish & Seafood Market Outlook to 2028

Indonesia Fish & Seafood Market Overview

• The Indonesia Fish & Seafood Market is valued at USD 25 billion, according to a recent five-year historical analysis. Key drivers of growth include Indonesia's extensive marine resources and government initiatives promoting sustainable fishery practices, which enhance both the production volume and export potential. High domestic demand, coupled with increasing investments in aquaculture, has further solidified the markets strong positioning.

• Indonesias fish and seafood industry is prominently influenced by cities like Jakarta and Surabaya, given their access to advanced fishing infrastructure and robust logistics networks. Java Island dominates the market due to its proximity to major export ports, while regions like East Kalimantan are vital due to rich fish stock in coastal waters, fostering regional fisheries' productivity and export quality.
• The Ministry of Marine Affairs and Fisheries enforces fishing quotas to regulate fish stocks, crucial to preventing overfishing. In 2023, new policies set catch limits for 20 high-demand fish species, including tuna and snapper, to prevent stock depletion. These quotas aim to ensure that fish populations remain sustainable, allowing long-term industry viability. Regulations also mandate reporting by fishery companies, promoting transparency and adherence to quotas, which helps in preserving biodiversity

Indonesia Fish & Seafood Market Segmentation

• By Product Type: Indonesias Fish & Seafood Market is segmented by product type into Fresh Fish, Frozen Fish, Canned Seafood, and Ready-to-Cook Products. Among these, Fresh Fish holds a dominant position, primarily due to consumer preference for minimally processed seafood and established distribution channels that cater to freshness-sensitive buyers. The presence of local fish markets across urban and rural areas supports the prominence of fresh fish.

• By Distribution Channel: The market segmentation by distribution channel includes Retail (Supermarkets, Convenience Stores), Foodservice (Hotels, Restaurants), Online Platforms, and Wholesale. The Foodservice segment leads the market due to the high demand from hotels and restaurants, especially in touristic areas, contributing to a robust B2B supply chain and reliable seafood supply channels.

Indonesia Fish & Seafood Market Competitive Landscape

The Indonesia Fish & Seafood Market is dominated by key players who leverage both domestic production capabilities and strong export networks. Major competitors, including Japfa Ltd. and PT Kelola Mina Laut, emphasize sustainable practices and quality certifications to maintain a competitive edge in international markets.

Indonesia Fish & Seafood Market Analysis

Growth Drivers

• Domestic Consumption Demand: Indonesias fish and seafood consumption is among the highest in the region, with an estimated per capita consumption of 41.11 kilograms annually, according to the Ministry of Marine Affairs and Fisheries. This high demand is largely due to Indonesias archipelagic nature, where fish is a staple protein. With a population of 275 million people, fish products form a significant part of the dietary intake, and domestic demand is supported by over 7.4 million tons of fish production in 2023. This demand sustains the market's growth and underscores its significance in the country's food security strategy. Source
• Export Opportunities: Indonesia is the second-largest fish producer globally, generating over 12 million metric tons annually, according to FAO data. Export demand is especially strong from key markets like the United States, Japan, and the European Union, which import products worth billions each year. In 2023, fish and seafood exports generated USD 5.2 billion, backed by strong global demand and a robust export infrastructure, particularly in cities like Jakarta and Surab;aya, which have well-developed port facilities. This external demand underscores Indonesias role as a significant player in the global fish market.
• Aquaculture Expansion: Indonesias aquaculture sector is rapidly expanding, fueled by government support and improved farming practices. According to the Ministry of Marine Affairs and Fisheries, the aquaculture industry produces over 8.5 million tons of fish annually, with tilapia, shrimp, and seaweed as primary outputs. This expansion is further supported by initiatives to increase aquaculture farms by 30% in regions like Sumatra and Kalimantan, which hold suitable conditions for fish farming. The governments focus on aquaculture aligns with its goal to maintain seafood sustainability and address overfishing in natural waters. Source

Market Challenges

• Overfishing Regulations: The government has intensified fishing regulations to prevent overfishing, limiting annual catch quotas to maintain stock levels. In 2023, the Ministry of Marine Affairs and Fisheries introduced stricter catch limits, resulting in a reduction of up to 15% in catches for certain high-demand species like tuna and snapper. These restrictions, while essential for sustainable practices, challenge the industry as fishery businesses adjust to reduced output. This regulation aims to protect marine biodiversity, but it poses operational adjustments for fishery companies reliant on high catch volumes. Source
• Seasonal Supply Variations: Indonesias monsoon season affects fish supply, with fishing activities halting for safety and sustainability reasons. Seasonal disruptions lead to a fluctuation in fish availability, particularly from November to March, when heavy rains restrict coastal fishing activities. This seasonal impact is evident in major fishing regions like Sumatra and Sulawesi, where output can drop by up to 30% during peak monsoon months, leading to reliance on stored or imported seafood to meet demand. This seasonal variability necessitates a robust cold chain to minimize disruption impacts.

Indonesia Fish & Seafood Market Future Outlook

The Indonesia Fish & Seafood Market is expected to see progressive growth driven by expansion in aquaculture and innovations in cold chain logistics. Increased global demand for sustainable seafood, alongside the Indonesian governments investments in fishing infrastructure, will further bolster the industrys output and export capacity.

Market Opportunities

• Growth in Sustainable Fisheries: The Indonesian government is actively promoting sustainable fisheries, aiming to achieve sustainable fishing practices across 60% of national fisheries by 2025. In support of this, the government has introduced subsidies and incentives for sustainable practices, particularly in regions like Bali and Sulawesi. This transition to sustainable fisheries opens opportunities for businesses to cater to eco-conscious markets in the EU and the US, where demand for sustainably sourced seafood has increased substantially. This shift positions Indonesia favorably in global markets that prioritize sustainability. Source
• Rise in Aquaculture Investments: With the government targeting aquaculture as a growth sector, investments in aquaculture facilities are rising. In 2023, the sector attracted USD 500 million in investment, particularly for shrimp and tilapia farming, primarily in Java and Sumatra. This sector is expected to play a significant role in meeting both domestic and export demand, reducing over-reliance on wild-catch fisheries. The governments long-term vision includes creating a self-sufficient aquaculture industry capable of supplying both local and international markets with quality seafood.