Indonesia Targets Fishers' Terms of Trade of 120 in 2027

Gains leave fishers economically vulnerable

In a statement received Friday, October 23, Hasan said many Indonesian fishers remained economically vulnerable despite the improvement. He described an NTN reading of 103 as earning just Rp3 million (about US$165) for every Rp100 million in expenditure, a result he characterized as effectively a loss.

Under those conditions, he said, fishers often cannot afford their children's education without government support, including 30 kilograms of rice and cash assistance.

A performance report from the fisheries ministry's Directorate General of Capture Fisheries, cited by Hasan earlier in October, provided more precise annual figures: NTN reached 103.86 in 2025, compared with 101.76 in 2024. The 2025 result fell short of the target of 105.

The latest monthly figures also showed a setback. Statistics Indonesia (BPS) recorded September 2026 NTN at 108.85, a decline of 0.17 percent from August's 109.04. The index measuring prices fishers received increased by 0.62 percent, while the index of prices they paid rose faster, at 0.79 percent.

Credit and village cooperatives

Hasan said the government would support coastal businesses through the Red and White Village Cooperatives program and initiatives for micro, small, and medium enterprises. He also highlighted lower interest rates on government-backed lending: loans through state-run microlender PNM Mekaar are capped at 8 percent, while the People's Business Credit (KUR) program has a 6 percent ceiling.

The cooperatives program seeks to establish about 80,000 cooperatives, with one in every Indonesian village. Ministry of Cooperatives figures showed 15,845 had been built by July 2026 and another 19,539 were under construction.

President Prabowo Subianto outlined his expectations for the Red and White Village/Subdistrict Cooperatives at the 79th National Cooperatives Day in Jakarta on July 12, 2026. He projected up to Rp223 trillion in annual economic activity across villages and income increases of as much as Rp202 trillion for farmers, livestock breeders, and fishers.

Financing and maritime enforcement

Hasan linked fishers' financial difficulties to maritime defense and sovereignty, saying inadequate access to credit often keeps them from buying larger vessels that can operate in Indonesia's Exclusive Economic Zone and the open sea.

He attributed Rp250 trillion (nearly US$14 billion) in annual losses to illegal fishing by foreign vessels, saying it reduced state revenue. Earlier, at the October 12 launch of the Lobster Seed Smuggling Eradication Task Force at the fisheries ministry's office, he had identified stronger maritime law enforcement as one step toward an NTN of at least 120 by 2027.

Calling for greater government intervention in coastal communities, Hasan pointed to agricultural measures as an example. He said changes to subsidized fertilizer distribution and unhusked rice purchase prices had helped lift the Farmers' Terms of Trade to 131.

Fishermen's village construction plans

The government is also developing Red and White Fishermen's Villages (KNMP). In September, Hasan said the Ministry of Marine Affairs and Fisheries (KKP) had built 100 sites in 2025 and planned another 1,269 locations in 2026, with approximately Rp10 trillion (US$551 million) budgeted. The broader goal is 5,000 fishermen's villages by the end of 2029.

Planned facilities include fish auction sites and boat access points, along with cold storage warehouses, workshops, ice plants, and dedicated fuel stations for fishers known as SPBN.

One site in Sorue Jaya, Konawe District, Southeast Sulawesi, was still in its trial phase when it shipped eight tons of export-quality fish to other regions in August 2026. Cold storage facilities, an ice factory, and a jetty supported the shipment.