an overview of tourism and reef & demersal - USAID

An Overview of Tourism and Demersal & Reef Fisheries Sectors in Indonesia and a Rapid Assessment of the Tourism

& Fisheries Sectors in Morotai Island, North Maluku

January 2018

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SUSTAINABLE ECOSYSTEMS ADVANCED (SEA) PROJECT

PRODUCED BY MARINE CHANGE

JANUARY 2018

[DISCLAIMER] This report is made possible by the generous support of the American People through the

United States Agency for International Development (USAID) with the close collaboration of the Government

of Indonesia (GOI). The contents of this report are the sole responsibility of Marine Change and do not

necessarily reflect the views of USAID or the United States Government.

AN OVERVIEW OF TOURISM AND REEF & DEMERSAL

FISHERIES SECTORS IN INDONESIA AND A RAPID

ASSESSMENT OF THE TOURISM & FISHERIES SECTORS IN

MOROTAI, NORTH MALUKU, INDONESIA



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Table of Contents

Acknowledgments .................................................................................................................................. 4

Executive Summary ................................................................................................................................ 5

1. Scope of the report ......................................................................................................................... 7

2. Overview of the tourism sector in Indonesia .................................................................................. 7

International rankings ..................................................................................................................... 8

“10 New Balis” program ................................................................................................................. 8

Private and public investment ........................................................................................................ 9

International promotion ............................................................................................................... 10

Domestic tourism .......................................................................................................................... 10

Tourism from China ...................................................................................................................... 10

Tourism from India ....................................................................................................................... 11

Niche markets – Muslim tourism .................................................................................................. 11

Niche markets – Marine tourism .................................................................................................. 11

Niche markets – Eco tourism ........................................................................................................ 12

3. Overview of the tourism sector in Morotai .................................................................................. 14

Tourism and local governance ...................................................................................................... 15

Access to Morotai ......................................................................................................................... 15

Main attractions ........................................................................................................................... 17

Tourism operators – Accommodation .......................................................................................... 23

Tourism operators – Diving .......................................................................................................... 27

Tourism operators – Transportation ............................................................................................ 28

Tourism operators – Food service providers ................................................................................ 28

Profile of tourists .......................................................................................................................... 29

Opportunities for development of the tourism sector in Morotai ............................................... 32

Challenges and constraints to tourism development in Morotai ................................................. 33

Action Plan to support tourism development in Morotai ............................................................ 34

4. Overview of the demersal and reef fisheries sector in Indonesia ................................................ 36

Small-scale fisheries management ............................................................................................... 37

Typical small-scale fisheries supply chain ..................................................................................... 38

Reef fisheries ................................................................................................................................ 38



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Demersal fisheries ........................................................................................................................ 40

Mangrove fisheries ....................................................................................................................... 42

Export markets versus local consumption .................................................................................... 42

Conclusions and recommendations.............................................................................................. 44

5. Overview of the fisheries sector in Morotai ................................................................................. 45

Fisher data .................................................................................................................................... 45

Catch data ..................................................................................................................................... 48

Infrastructure in place .................................................................................................................. 49

Opportunities for the fisheries sector .......................................................................................... 50

Challenges and constraints in the fisheries sector in Morotai ..................................................... 50

Action Plan to support the fisheries sector in Morotai ................................................................ 51

6. Economic modeling ....................................................................................................................... 52

Key results from the economic model .......................................................................................... 54

7. Conclusion ..................................................................................................................................... 61

Annex A – Organizations interviewed .................................................................................................. 63

Annex B – Morotai Flight Information .................................................................................................. 64

Annex C – GSTC Criteria ........................................................................................................................ 65

Destination criteria ....................................................................................................................... 65

Industry criteria ............................................................................................................................ 67

Annex D – Fishery case study 1 ............................................................................................................ 69

Annex E – Fishery case study 2 ............................................................................................................. 73

Annex F – Fishery case study 3 ............................................................................................................. 74



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Acknowledgments

Marine Change is grateful for the support from the SEA Project and Partners for the completion of

the field work and this report. We are also greatly indebted to the many government officials,

fishers, local business owners and other stakeholders who allowed us to interview them for this

report. They are named in the Appendix A. We also especially acknowledges the efforts of the

Wildlife Conservation Society in assisting in logistical arrangements of the field trips as well as their

data collection and other efforts that enabled this report and the overall development of the

economic model.



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Executive Summary

Marine Change conducted a rapid assessment of Morotai’s tourism and fisheries sectors in

support of the USAID SEA Project. Morotai has received significant attention from the

government of Indonesia over the last three years, as the island has the potential to help

the country’s leaders fulfill some of their key policy objectives. First, the island is viewed as

having great tourism potential due to it beaches, offshore islands, coral reefs, and historical

artifacts. Second, as an outer island, the government views economic development in

Morotai as bolstering the security of the country. Third, the substantial tuna fishery off the

east coast of the island is viewed as an untapped resource.

While Morotai has great potential, the current state of local governance is weak, and the

tourism and fisheries sectors are both underdeveloped. The national government aims to

attract 500,000 visitors to the island by 2019. However, Morotai hosted less than 6,000

visitors in 2016 and currently lacks the infrastructure to accommodate or attract anywhere

near half a million people annually. There are just 183 rooms in 17 establishments, few if

any, meet international tourism standards. Similarly, there are only 26 restaurants with a

combined 838 tables available to cater to visitors. In general, the service at these

restaurants is very slow and the quality and presentation of the food varies, but again most

establishments do not meet international tourism standards.

With fisheries, the goals are more realistic but challenges remain. As there is no

operational fish processing capacity on the island, fishers are forced to sell their catch in

the local wet market or to middlemen who in turn sell to collecting vessels. As a result, the

fishermen capture a fraction of the potential value of their catch. Government catch data

are unreliable, there is little if any enforcement of fisheries law on the island, and current

stock status of the demersal and reef fisheries around Morotai is unknown.

While the current capacity level of both public and private sector in Morotai could be

improved, the opportunity to help guide the development of the island is high. A new

Bupati was recently elected, and reportedly understands and is amenable to sustainable

tourism development. He is working with the leadership of Bappeda – the local planning

agency – and Dinas Pariwisata – the local tourism government agency – to develop a new

master plan for the island, which will lay out the development of the island for the next five

years. This is a timely opportunity for the SEA Project to partner with local government to

shape the future of Morotai.

The main opportunities for the SEA Project to integrate sustainable tourism development

and improved fisheries management lie on capitalizing on the current momentum brought

by the new administration and the new master plans, expected to be completed by 2018.

Specific opportunities for development of the tourism sector in Morotai include:

1. Promote Morotai as an ecotourism destination with historical significance;

2. Imbed ecotourism within local government master plans;

3. Use local private actors to promote the MPA and its link to tourism; and

4. Increase the capacity of local government officials about existing tourism standards to

encourage adoption of sustainably responsible tourism and/or ecotourism.



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In the case of fisheries, the key opportunities to be explored to ensure value remains in the

island, generate additional local employment in the fisheries sector, and support the

establishment of the MPA in Morotai include:

1. Invigorate existing installed fish processing and ice infrastructure to add value to current

catch;

2. Extend value-added services for reef and demersal fisheries taking place within the MPA and

explore higher value markets; and

3. Sift fishing pressure from within the MPA to more and higher value pelagic fish that are

caught mostly outside of the MPA.

The SEA Project can use the economic model, developed as a decision-making tool for

local government to understand the tradeoffs between fishing and tourism in Morotai’s

proposed MPA area, to support government’s master plans. The model can provide a

strong argument to consider Morotai’s marine ecosystem as an important and valuable

asset, and secure its long-term management. The model’s initial analysis reveal that the fish

in the reefs surrounding Morotai are worth much more in the water, as their protection

will attract tourists who will pay to dive or snorkel with them. The analysis also

demonstrates the dramatic loss of value that can take place in a relatively short period of

time when catch and effort is increased and fish stocks and tourism values are reduced as a

result.

Overall, the strategies to support the two sectors rely on a combination of education,

information campaign, capacity building and training to strengthen local human resources;

the use of available existing assets; and the introduction of sustainability within the public

and private sector planning activities, using the economic model to strengthen the

argument.



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1. Scope of the report

This report presents and overview of Indonesian tourism sector and current developments,

especially in regards to key niche sectors relevant for the development of tourism within

the SEA project and Morotai. An overview of reef and demersal fisheries of Indonesia,

important for MPA based fisheries, is also presented, as a background for the further

development of these fisheries sectors within the SEA project. These sections are based on

key reports and data sources, derived from desk research.

The report document outlines the findings of the rapid sector assessment conducted on site

in Morotai Island, North Maluku Province, in July 2017. The purpose of the rapid sector

assessment is to provide an overview of two key economic sectors; tourism and fisheries.

The rapid assessment intends to provide an evaluation of the constraints and opportunities

in these sectors in Morotai, as well as an overview of the key private sector players active in

the two sectors. Building from an analysis of the current constraints and opportunities, this

report outlines potential strategies for the SEA Project Partners to consider in their

implementation efforts.

The assessment relied on information and data obtained by interviews with relevant

government officials and official data sets provided by the local government. One of the

main challenges of this assessment is the availability and accuracy of the data related to the

tourism and fisheries sectors. A list of government agencies visited is included as Annex A.

This report also presents economic modeling, developed as a decision-making tool for local

government to understand the tradeoffs between fishing and tourism in three key sites of

the proposed MPA area.

Finally, this report indicates a Plan of Action for each sector, as recommendations to the

SEA project regarding the intervention areas likely to have the greatest impact on the

sustainable development of the island.

2. Overview of the tourism sector in Indonesia

The world’s fourth-most-populous nation, Indonesia’s unique cultures, World Heritage

Sites, pristine beaches, world class diving, and rare wildlife make it an ideal holiday

destination. Given its diverse offering, Indonesia should be one of the world’s leading tourist

destinations, yet it has consistently ranked behind neighboring Thailand and Malaysia in

tourist arrivals.

Since taking office in 2014, the government of President Joko Widodo has been working to

to change that. It has recognized tourism as a major pillar of economic growth, making the

Ministry of Tourism (MoT) a standalone ministry for the first time, and set a target of 20

million foreign visitors by 2020, when the industry is expected to become Indonesia’s biggest source of foreign exchange earnings in 2018. By the end of this decade, tourism is

expected to contribute 15% of total Gross Domestic Product (GDP), account for USD 17.5

billion of foreign exchange, and create 13 million jobs.1

To support the government’s ambitions, officials have drawn up plans to improve

infrastructure such as roads, airports, ferries and basic utilities across the country. In

addition, the government has more than quadrupled the budget for tourism campaigns to

1 “Indonesia taking a varied approach to bolster tourism numbers” Oxford Business Group, 2017.



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show the world’s travelers that the whole of Indonesia, not just Bali, is eager to welcome

them.

International arrivals to Indonesia rose by 7.2% in 2016, to 11.5 million arrivals. This growth

in visitor numbers was higher than Southeast Asia’s average of 5.1% and the global average

of 4.4%. The upward trajectory has continued in 2017: for the year through July, 7.8 million

tourists entered the country, an increase of 23.5% on the same period in 2016.2 This trend

however, had a slight down turn for the last quarter of 2017, due to the volcanic eruption

of Mount Agung in Bali, Indonesia’s primary tourist destination.

Citizens of 169 countries are now able to spend up to 30 days in Indonesia without a visa if

they arrive through one of 29 international airports, 88 seaports or 7 land borders, making

it one of the most open countries in the world. The removal of visa requirements is part of

a wider government attempt to reduce the bureaucratic burden in key industries.

Approximately 80% of all international visitors to Indonesia come from the Asia-Pacific

region, led by China, Indian and Singapore.

Domestic tourism has also increased amid steady economic growth that has boosted

incomes across Indonesia. Citizens recorded an estimated 255 million trips in 2015, beating government targets.3

International rankings

Currently, Indonesia lags behind some of its Southeast Asian neighbors, ranking 42 of 141

countries in the World Economic Forum’s Travel and Tourism Competitiveness Index 2017.

By comparison, Malaysia ranks 25 and Thailand 34. Indonesia is ranked highly in terms of

price competitiveness – helped by the weakness of the rupiah – and its commitment to

developing the industry, but identified shortcomings include infrastructure (both overall and

tourism-related), environmental sustainability, and IT accessibility.

Nonetheless, Indonesia’s position in the latest report represents an 8-place improvement on

the previous year’s index, and it is likely to move further up the index in future thanks to

improvements under the ITDP to tourism service infrastructure, where it ranked 96, and

the supply of hotel rooms, where it placed 93.4

Tourism is currently Indonesia’s fourth-biggest source of foreign exchange earnings after oil

and gas, coal, and palm oil and predicted to become the largest already in 2018. Regarding

foreign exchange revenues from tourism, Indonesia ranked 9th globally in 2014, with USD

11.2 billion, behind Thailand and Malaysia, which had USD 38.4 billion and USD 21.8 billion,

respectively. Indonesia’s travel and tourism sector contributed USD 82.4 billion, or 9.6%, of

total GDP in 2016. This is again below regional competitors such as Thailand (20%) and

Malaysia (16%) as a percentage of GDP.5

“10 New Balis” program

Under a plan launched in 2016, Indonesia is developing new destinations as major tourist

centers under its “10 New Balis” program. The scheme seeks to replicate the success of

Bali, which currently attracts some 40% of all inbound tourist arrivals. Bali, Jakarta, and

Batam together account for more than 90% of arrivals. Looking to engage international

2 Ibid. 3 “Indonesia looks to build on recent tourism growth” Oxford Business Group, 2017. 4 “Travel and Tourism Competitiveness Report” World Economic Forum, 2017. 5 “Arief Yahya, Minister of Tourism: Interview” Oxford Business Group, 2017.



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investors, the MoT aims to add 120,000 hotel rooms, thousands of restaurants and up to

100 recreation parks across the country.6

The “10 New Balis” effort falls within the broader Indonesia Tourism Development

Programme (ITDP) being undertaken with assistance from the World Bank, which will

provide a USD 180 million loan to support the initiative, and up to an additional USD 570

million based on the program’s results. The priority sites for development span the country

and consist of Lake Toba, Borobudur, Bromo, Thousand Islands, Mandalika, Wakatobi,

Morotai, Belitung, Tanjung Lesung, and Labuan Bajo.

There are four goals under the broader plan: improving the sustainability and tourist

capacity of key destinations; promoting domestic participation in the sector; creating an

environment conducive to private sector investment; and increasing the capacity of

institutions to facilitate tourism development.

The plans include revitalizing five already-popular destinations (Lake Toba, Borobudur,

Bromo, Thousand Islands and Mandalika), and five relatively new areas, including Morotai

and Wakatobi. Four of the 10 have also been designated as special economic zones (SEZs),

ensuring fiscal and non-fiscal incentives for investors.

Those not designated as SEZs (e.g. Morotai) have dedicated tourism authorities (Dinas

Pariwisata) to lead development. The authority will implement the area’s master plan, work

with government officials at the local, regional and national levels, and award contracts and

permits to ensure basic infrastructure is in place, as well as roads, hotels, restaurants and

other tourist facilities and attractions.7

Private and public investment

To encourage foreign direct investment (FDI) the national government has opened

passenger land transportation to outsiders for the first time, enabling foreigners to own up

to 49% of a transport company. Foreigners can also own up to 100% of a business related to

toll roads and control up to 67% of an airport services business. Limits for investors from

ASEAN countries are higher for both tourism and transport. Non-bank financial institutions

such as insurance companies and pension funds are now also able to invest in tourism

businesses.

In 2014, FDI and domestic direct investment (DDI) in tourism accounted for a combined

USD 684.9 million, reaching USD 1.05 billion in 2015, an increase of 53% year over year.

Five categories account for 97% of tourism FDI: star hotels (65.1%), other hotels (16.6%),

management consultants (7.6%), restaurants (6.3%) and tourism areas (1.8%). The top five

provinces receiving FDI in tourism – Bali, Jakarta, Riau Islands, West Java and East Java –

account for 88% of the total. In terms of DDI, those top five categories receive 99% of the

total, and the top five provinces account for 72% of the total.

On the public side, in 2014, the government committed to build 165 airports across the

country, including plans to renovate 29 airports to handle international traffic. Garuda

Indonesia flies to 40 domestic and 36 international destinations, and has started new flights

connecting Bali with main Chinese cities, and has also expanded operations to Europe and

6 “Indonesia making efforts to replicate Bali’s success in 10 sites across the nation” Oxford Business Group, 2017. 7 Ibid.



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Saudi Arabia.8 Other domestic airlines such Sriwijaya and Lion air are looking at doing the

same.

International promotion

In developing Indonesia’s tourism industry, the government is stepping up its global

marketing efforts under the “Wonderful Indonesia” tagline. 9 The budget for overseas

promotions rose to USD 219 million in 2016, up from USD 94.9 million in 2015 and USD

29.2 million in 2014, a nearly ten-fold increase. 40% of the spending is targeted at digital

promotions, as more travelers use the Internet to book their holidays.

Indonesia was also leveraging the “Visit ASEAN” marketing campaign in conjunction with the

organization’s 50th anniversary in 2017. The initiative focused on major regional and long-

haul markets including China, India and North America. Indonesia’s MoT has also focused on

markets across ASEAN, Europe, and the Middle East.10

Domestic tourism

Domestic tourists made an estimated 255 million trips in 2015. Most domestic tourists

originate from Java, especially Jakarta.11 Domestic tourism spending was IDR 700,000 (˜USD 52) per trip in 2017, far below the average spending of international tourists (USD 1,200).12

Domestic trips are usually made when schools are closed for a holiday, such as Idul Fitri (the

festivities after the fasting month of Ramadan has ended), Chinese New Year, Christmas and

New Year.

There has been an explosion of cheap domestic airlines over the last 10 years. This has now

enabled many domestic tourists to start visiting popular destinations such as Bali,

Yogyakarta, Komodo, amongst others, that have long been popular with foreign tourists.

Other destinations such as Bandung have become popular with domestic tourists, especially

with younger travelers.

Building tourism infrastructure for domestic visitors is much easier than for international

visitors due to local preferences in terms of food, accommodation and language

requirements. Hence, strategies for domestic tourism development are particularly

important in the context of remote areas where little current infrastructure of capacity

exists, such as some of the SEA project sites.

Tourism from China

With over 2 million arrivals in 2016, China has overtaken Singapore, Malaysia and Australia

as the largest source of international tourists in Indonesia. Most Chinese tourists visit Bali,

but diving in regions such as northern Sulawesi has become increasingly popular.

As well as removing visa requirements, Indonesian officials have made regular visits to China

to showcase Indonesian destinations and encourage mainland companies to invest in the

archipelago, particularly in the infrastructure that is vital to tourism development. Chinese

hotel company Plateno Group is one of the most active investors, with 10 hotels either

open or under construction in destinations including Bali and Medan.

8 “Indonesia taking a varied approach to bolster tourism numbers” Oxford Business Group, 2017. 9 http://www.indonesia.travel/my/en/news-events/news/in-2017-indonesia-targets-15-million-tourists-or-a-phenomenal-25-percent-growth 10 “Indonesia's tourism industry tapping into the growth of e-commerce” Oxford Business Group, 2017. 11 https://www.indonesia-investments.com/news/todays-headlines/domestic-foreign-tourism-in-indonesia-expected-to-rise-at-year-

end/item6253 12 http://indonesia-tourism-investment.com/?page=tourism-overview



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An increase in the number of flights has also made it easier for Chinese visitors to get to

Indonesia. National carrier Garuda Indonesia, which has been flying between Bali and Beijing

since the beginning of 2015, started flights between the resort-island and Guangzhou in

November 2015 and to Shanghai in January 2016. It also began operating charter services

between Bali and various Chinese cities in 2016. Charter flights are a way for airlines to

explore demand for new markets and are popular with groups – which is attractive for

Chinese tourists since most Chinese visitors travel on package tours.13

Tourism from India

Garuda is also at the forefront of efforts to attract more visitors from India, which currently

has only two direct flights to Indonesia (from Mumbai and Kolkata). The airline launched

charters to South Asia in 2016 as a tester for future scheduled services. India is among the

countries that now enjoy the 30-day visa-free tourism facility. As their incomes rise and

Indian citizens become more interested in overseas travel, the MoT is targeting 500,000

arrivals from India in 2020, compared with 270,000 in 2015. In 2014 Indian tourists spent an

average of around USD 1,140 during their Indonesian holidays.

Indonesia has stepped up promotional activities in India, taking part in regional travel shows

and exhibitions including South Asia’s largest tourism fair. The authorities hope that the

countries’ shared religions and cultures will attract a rising number of Indian visitors,

especially to Bali.14

Niche markets – Muslim tourism

In developing its tourism industry, Indonesia is aiming to build a reputation in niche areas

such as meetings, conferences and exhibitions, Muslim-friendly travel, food, and marine and

nature tourism.

Around 88% of Indonesia’s population is Muslim and it is the world’s most populous Muslim

country. There were an estimated 117 million Muslim visitor arrivals globally in 2015,

representing nearly 10% of the global travel market, and Indonesia wants to build a Muslim-

friendly tourism industry that will encourage more people from the Middle East to visit the

country. Tourists to Indonesia from the United Arab Emirates and Saudi Arabia prefer

luxury travel and spend between USD 1,500 to 1,700 each, compared to an average of USD

1,200 each spent by other foreign visitors. Indonesia was ranked fourth in the Global Muslim

Travel Index 2016 (two places higher than in 2015), and the country was rated highly for its

Muslim-friendly services and visa-free regime.15

Niche markets – Marine tourism

Most tourism within Indonesia, especially for international arrivals, would be considered as

marine or coastal tourism. With more than 17,508 islands, Indonesia presents ample diving,

water sports, and cruising opportunities. While activities such as surfing and diving are well

developed in some parts of the country, it is considered that the marine tourism sector,

especially when it comes to both cruise and yachting tourists, is still largely undeveloped.

With 20% of the world's coral reefs, over 3,000 different species of fish and 600 coral

species, deep water trenches, volcanic sea mounts, World War II wrecks, and an endless

variety of macro life, scuba diving in Indonesia is both excellent and relatively inexpensive.16

13 “Indonesia looking to bring an increasing number of visitors from China and India” Oxford Business Group, 2017. 14 Ibid. 15 Ibid. 16 "Scuba Diving in Indonesia: Komodo, Raja Ampat, Bali, Sulawesi and More". Dive-the-world.com. Retrieved 11 January 2018.



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In 2017, the readers of the International Dive Magazine voted Indonesia as their top diving

destination.17

Although there are excellent diving spots all over the country, the most popular diving

tourism hotpots have been developed around the MPA network; Bali and Nusa Penida

(although many other sites are also popular in Bali, e.g. Tulamben), Komodo, Bunaken,

Wakatobi and Raja Ampat National Parks. Diving being a specialist activity requires

infrastructure development as well as a skilled local or expat work force.

In addition, Indonesia has excellent world-class surf breaks and consistent swell conditions.

The well-known spots are mostly located on the southern Indian Ocean side of Indonesia

with surf breaks found all the way along Sumatra and down to Nusa Tenggara. These sites

include Aceh, Bali, Banten, Java, Lombok, the Mentawai Islands, and Sumbawa.

Bali, Indonesia’s most popular tourism destination, was originally discovered and promoted

by surfers. With over 33 surf spots, surfing is still one of its main attractions despite mass

tourism now mingling amongst surf tourists and long-term visitors. Surfing is a niche activity

that has led to more mass tourism development in other parts of Indonesia also such as

Lombok, Sumbawa and the Mentawai Islands. The majority of surfers come from abroad, especially Australia, United States and Brazil.

For the yachting community, Indonesia offers an opportunity for some fine sailing, but the

lack of infrastructure, coupled with considerable bureaucracy, has made the archipelagic

waters tricky to navigate for sailors. Securing sailing permits and customs and quarantine

clearance, as well as limited marina and berthing facilities, discourages many yachts from

visiting Indonesia, despite relatively low berthing and mooring rates.18

Similarly, there is currently limited port and other infrastructure for cruise ships to visit

Indonesia. Benoa Harbor in southern Bali is among the most developed of the country’s

ports. While the port can handle midsized cruise ships catering to as many as 2,000

passengers, vessels that are longer than 300m have to drop anchor in the bay and use

tenders to get their passengers ashore. There are current improvements under way to

cater for larger vessels in Benoa and to open up a further 19 ports for cruise ships in order

to encourage ship visits.19

Niche markets – Eco tourism

Ecotourism is now defined as "responsible travel to natural areas that conserves the

environment, sustains the well-being of the local people, and involves interpretation and

education". Education is meant to be inclusive of both staff and guests.20 The definition is

not to be confused with ethical or socially responsible tourism, which have separate focus

and less holistic approaches to environmental and social responsibility.21

Given Indonesia’s high marine and terrestrial biodiversity, low level of government

infrastructure in many parts of the country including litter and waste management, and the

need to include community in development and tourism activities, Indonesia lends itself well

for ecotourism activities. Despite this, ecotourism activities are currently both poorly

developed and monitored.

17 http://divemagazine.co.uk/go/7561-the-top-10-diving-destinations-in-the-world 18 https://oxfordbusinessgroup.com/analysis/marine-segment-offers-great-potential-indonesia-targets-better-accessibility 19 https://oxfordbusinessgroup.com/analysis/marine-segment-offers-great-potential-indonesia-targets-better-accessibility 20 http://www.ecotourism.org/what-is-ecotourism 21 http://www.responsibletravel.org/resources/documents/2015%20Trends%20&%20Statistics_Final.pdf



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In many parts of Indonesia, including its main tourism destinations, there are no ecotourism

options available at all or they are of very limited scope and capacity. Some smaller outfits as

well as high-end ecotourism resorts and activities exist, especially in relation to marine

tourism, but no unified national standard is currently available to measure their scope and

impact. The International Eco Tourism Society monitors and develops minimum standards22

and has some members also active in Indonesia. In addition, both WWF and Conservation

International have been working on ecotourism and local community projects in support of

their conservation projects, both marine and terrestrial in Indonesia at small-scale. The

Rainforest Alliance 23 and Tourism Concern International has also developed Fair Trade

Travel industry standards.24

Aside from the ecotourism standards there are also responsible tourism standards that aim

to achieve minimum standards for industry and are increasingly referred to by the mass

tourism sector. Although not meeting stricter ecotourism standards, they seek to lessen the

impact of travelers and introduce small changers to operator’s practices in order to lessen

their environmental footprint. One such outfit is Responsible Travel Standard 25 and The

Global Sustainable Tourism Council (GSTC).

The GSTC establishes and manages global sustainable standards, known as the GSTC

criteria. These include destination criteria for public policy-makers, and industry criteria for

hotels and tour operators. These are considered the guiding principles and minimum

requirements that any tourism business or destination should aspire to reach in order to

protect and sustain natural and cultural resources, while ensuring tourism meets its

potential as a tool for conservation and poverty alleviation.26

The GSTC criteria serve as the global minimum standards for sustainability in travel and

tourism. The criteria are used for education, awareness raising, policy making, and as a basis

for certification. The criteria are the result of a global effort to develop a common language

about sustainability in tourism, and are arranged in four pillars:

A. Sustainable management

B. Socioeconomic impacts

C. Cultural impacts

D. Environmental impacts (including consumption of resources, reducing pollution, and

conserving biodiversity and landscapes)27

A summary of the destination and industry criteria is presented in Annex C, while the full

criteria are described by the GSTC in much more detail on their website.

While ecotourism is a niche market, it is seen as one of the major growth sectors for

tourism globally. As environmentally-conscious younger generations began to travel more,

including domestically and within Asia, the demand for credible ecotourism services and

experiences that allow participants to both learn and protect local biodiversity, nature and

customs increases. People are also becoming more interested in limiting their environmental

footprint through the use of renewable energy, locally grown food and effective waste

management strategies and want to know and research these things before their travel. This 22 www.ecotourism.org 23 https://www.rainforest-alliance.org/business/tourism/certification 24 https://www.tourismconcern.org.uk/about/who-we-are/ethical-fair-trade-tourism-principles/ 25 http://www.responsibletravel.org/home/index.html



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makes ecotourism special booking services, standards and marketing very important for the

sector28 and successful ecotourism business requires a wide range of skills from community

development, conservation, and hospitality and business sectors.

As ecotourism is usually best tied to protected areas and the communities in their vicinity,

rather than highly urbanized or eroded areas, it is particularly suited for development in the

vicinity of MPAs and other protected areas. It should also be carefully considered if meeting

just minimum best practice criteria is sufficient or if the project should promote more

stricter ecotourism standards.

3. Overview of the tourism sector in Morotai

The tourism sector in Morotai is nascent, with 2016 marking the first year with consistent

commercial flights to the island. The national and local governments have attempted to

encourage tourism in the past by launching events such as Sail Morotai, held in 2012, which

attracted approximately 5,000 visitors. This event stimulated the development of several

homestays and local budget hotels. However, some of the homestays are no longer

operational due to the inconsistent flow of tourists after the event.

Dinas Pariwisata estimates tourist arrivals in 2016 included 5,255 domestic and 537

international visitors, totaling 5,792 guests. This is a 55% increase over 2015, in which there

were 3,733 reported tourist arrivals. However, it appears that many of the domestic visitors

who traveled to Morotai went for government functions or on business rather than for

tourism. Figure 1 below summarizes visitor arrivals over the past five years.

Figure 1: Historical visitor arrivals in Morotai

Source: Dinas Pariwisata

The national government has now prioritized Morotai as one of 10 key destinations for the

development of tourism in Indonesia. The current national plan contemplates robust growth

to 500,000 tourists by 2019, which would put significant strain on current infrastructure and

natural resources.

28 http://www.eco-business.com/news/eco-tourism-better-for-the-planet-better-for-you/

-

1,000

2,000

3,000

4,000

5,000

6,000

2012 2013 2014 2015 2016

Domestic

International



January 2018

15

Tourism and local governance

In early 2017 a new Bupati was elected and he has changed the heads of several of the key

local government offices, including Dinas Pariwisata and Bappeda. The new Bupati appears

to have a vision of sustainability and his motto – “Bangkit Morotai” or “Rise up Morotai” –

indicates that his primary goal is to bring development to this outer island.

The new Bupati rose to prominence on Morotai as a capable businessman and as the builder

of the main road that circles most of the island, constructed for the Sail Morotai event in

2012. Based on our discussions, the Bupati seems to be interested in considering the island’s

natural resources within the master plan and has encouraged a view of sustainable

development. With this in mind, the two key government agencies that could influence

tourism development – Dinas Pariwisata and Bappeda – are currently preparing new master

plans. Ultimately, the Bupati is the key decision maker and will decide the fate of direction of

these plans.

The heads of both Dinas Pariwisata and Bappeda seem encouraged and inspired to develop

their master plans with principles of sustainable tourism. In our conversations with the head

of Dinas Pariwisata, he noted that conservation is critical to tourism development and that

he believes sustainable development is the best way ahead for Morotai. The highly energetic

head of Bappeda was very amenable to engaging with outside groups in developing the new

master plan with sustainability in mind.

Access to Morotai

Morotai Island can be accessed by boat or plane. The plane journey from Ternate, the

location of the closest and only current connecting airport, lasts less than 40 minutes.

Wings Air is the only carrier operating flights in and out of Morotai’s Leo Wattimena

Airport, with one regular daily flight on an ATR plane with capacity for 72 passengers from

Ternate to Morotai (and immediately back to Ternate), flight 1171-1172. Average occupancy on these flights has been approximately 80%.

From September 2016 through March 2017 Wings Air also operated flight 1180-1181 from

Manado on an ATR plane with the same capacity. It is unclear why this flight was

discontinued, though it was likely due to low average occupancy on this route

(approximately 30%).

Based on the available airport records, which start in March 2016, arrivals have fluctuated

between 1,600 and 2,300 through June 2017 (see Annex B for monthly detail). The average

number of arrivals for the last 12 months (July 2016 to June 2017) was 1,972 passengers,

with 2,009 average monthly departures.



January 2018

16

Figure 2: Flight arrivals in Morotai

Source: Morotai Airport Authority

From available data, monthly flight occupancy rates – based on passenger capacity per plane

– ranges from 42% to 91%. Average occupancy decreased in late 2016/early 2017 due to the

inauguration of the Manado-Morotai route discussed above.

Figure 3: Summary of Morotai airport traffic

Arrival Departure

Average monthly traffic last 12 months (July 2016-June 2017) 1,972 2,009

Total passengers in 2017 (through June) 11,750 11,531

Total passengers in 2016 15,615 16,821

Source: Morotai Airport Authority

Flight tickets cost IDR 436,126 (approximately USD 33) from Ternate to Morotai and IDR

398,202 (approximately USD 30) returning from Morotai to Ternate.29 It is expected that

most tourists, national and international, would prefer flying over other options, such as

speedboat, due to the significant additional time required to reach the island by speedboat

(over 1h30).

While reaching the island by plane from Ternate only requires a short flight, there are few

flight options from the two main airports in Indonesia (Jakarta and Bali) offering convenient

connections to Ternate. Thus, reaching Morotai from Jakarta or Bali can take between 5 to

7 hours, including overnight journeys. The travel time might discourage international visitors

who do not wish to spend a significant portion of their holiday on-route to their destination.

There are plans to expand Morotai’s airport to accommodate larger planes and

international flights, but the exact start and completion dates for the project are unclear.

The United States military built multiple runways during its occupation of the island during

World War II, so any airport expansion could leverage this existing infrastructure. There

are anecdotal reports of a Memorandum of Understanding (MOU) to operate direct flights

from China to Morotai once the airport expansion is completed.

Morotai can also be accessed via speedboat and ferry from Tobelo on Halmahera Island.

Speedboats operate daily and the journey lasts 1h30 or more, depending on the weather.

There are approximately 5 speedboats that travel between Morotai and Tobelo daily with

29 Price estimates from Wings Air website – http://www.lionair.co.id – accessed on November 20, 2017.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

-

500

1,000

1,500

2,000

2,500

3,000

Arrivals

Departures

ArrivalOccupancy

DepartureOccupancy



January 2018

17

capacity for 10-12 people. Speedboats are independently owned and operated, but the

owners have devised a scheme to ensure that there is a rotation and a minimum income

amongst themselves. The total price for the one-way trip is IDR 1.5 million (approximately

USD 110), or IDR 105,000 (approximately USD 8) per ticket per person. Trips depart from

7hs to 17hs. The boats only leave once full, or if the passengers on a partially full boat agree

to pay an additional fee, thus ensuring the boat owner receives full fare of IDR 1.5 million.

This means that the timing of departure and subsequent arrival in Morotai are inconsistent

and hard to plan, making it inconvenient for travelers on a tight schedule.

In additional to speedboats, there is a ferry from Tobelo to Morotai that operates daily and

costs IDR 30,000 per trip and takes approximately 3 hours. It is assumed that tourists,

national and international, do no use the speedboat or ferry in high numbers.

Figure 4: Summary of transportation costs to arrive in Morotai

Mode of transportation Round trip cost Frequency Travel time

Plane IDR 834,328 (˜USD 60) 1 flight daily 40 min

Speedboat IDR 210,000 (˜USD 15) 5 boats daily 1h30

Ferry IDR 60,000 (˜USD 4) 1 daily 3h

Main attractions

One of the key differentiators of Morotai from other islands in Indonesia with similar

marine habitat and pristine beaches is its history as a United States military base during

World War II. There are numerous artifacts from WWII, such as abandoned tanks,

underwater airplane wrecks, as well as other relics that could be further explored for their historical significance. One such area is Zum Zum Island, adjacent to Morotai, which is home

to a statue from US General Douglas MacArthur and is the location of one of MacArthur’s

hiding places. However, the historical sites are not maintained or marked well enough to

enable tourists to easily explore them. Furthermore, the value of the sites could be

significantly enhanced with better interpretation to highlight the islands’ significance and the

unique events that took place.

There is also a WWII Museum constructed in 2012 but not yet officially opened at the time

of the visit. When visited by the assessment team, the museum was near completion but the

exhibits were not up to international standards and none of the explanations were in

English. There have been disputes between Dinas Pariwisata and Education and Cultural

Agency on the management of this museum, which has clearly impacted its operations,

promotion and maintenance. The team also visited a small, private WWII museum operated

by a local hobbyist, but he is unwilling to share his impressive collection with the local

government due to their perceived corruption and incompetence. Some of the historical

sites, in particular Zum Zum Island and the plane wrecks, are within the proposed MPA

boundaries and could bring additional value to the MPA.

Morotai’s adjacent islands, located within the proposed MPA boundaries, have pristine white

sandy beaches, rich marine biodiversity, and lush unspoiled forests, making them

destinations that can be explored for on-land and underwater activities, for both ecotourists

and mainstream tourists alike.

Dodola Island, a short 20-minute speedboat trip from Daruba, is perceived as very unique

and Morotai’s premier tourism destination, as during low tide a patch of white sand is

revealed, while during high tide the island is divided into two. This is considered the key

attraction by the head of Dinas Pariwisata and most of the private sector hotel/homestay

operators. Currently, the island caters to Indonesian tourists, who come on weekends from



January 2018

18

Morotai, Tobelo and other areas of Halmahera Island. There is a Jet Ski and banana boat

rental operation managed by Dinas Pariwisata and a small food vendor providing pre-

packaged snacks and bottled water. These facilities are not up to international standards.

Currently, there is no restaurant promoting the rich local cuisine that could cater to visitors

and provide additional employment and income to communities that live in adjacent islands,

such as Kokoya.

In the hopes of bringing additional tourists, income and employment, the local government

built small cabins as accommodation infrastructure on the island to be managed by the local

community. However, the cabins were never operational and are currently abandoned and

decaying as there is no regular maintenance. A training program, crucial to preparing local

communities to cater to tourists appears to also not have been implemented.

Kokoya Island, also reachable by a short 20-30 minute speedboat ride from Morotai, offers a

flavor of the local culture and cuisine and six homestays managed by the local community.

This picturesque small island has received support from students from Yogyakarta’s Gajah

Madah University to host local events demonstrating its potential to further promote its

unique local cuisine and handicrafts, which would be an attractive offering for a day trip for local and foreign visitors. Kokoya’s already-established homestays also offer a good base for

tourists to explore the other islands around Morotai. At the moment the other activities,

such as diving and snorkeling, are not well integrated, so visitors who come to Kokoya on a

day trip do not have information about the other activities. At the same time, divers do not

have information about the Kokoya homestay options and typically stay in budget

accommodation on Morotai. There is an opportunity to develop an integrated activity plan

to link all different cultural, historical, nature and sightseeing attractions to facilitate access

by visitors, thus increasing bed-night revenue and income for local communities in Kokoya

and decreasing their dependence on fisheries as a main source of income.

The islands within the proposed MPA boundaries also offer interesting dive sites, ranging

from coral reefs inhabited by different reef fish species, white and black tip reef shark

habitat, to WWII plane wrecks and a recent ship wreck. Dive sites are a short 20-30 minute

speedboat ride from Morotai and there are also some shore dives from Morotai’s southern

peninsula that offer the opportunity to see endemic species, such as the recently discovered

Halmahera walking shark (Hemiscyllium halmahera).30

Additionally, there have been sightings of dugongs in the area, which if consistent, would

make diving in Morotai a very special experience, as dugongs are a rare and highly

charismatic species. Shark diving seems to be attracting ecotourists to Morotai, and is an

area that can be explored by the USAID SEA project to ensure the shark species found in

Morotai are protected and well managed and that shark diving is conducted according to

good industry standards.

An hour’s boat ride from Daruba along the west coast of Morotai sits the largest island

within the proposed MPA, Rao Island. There is a small village on the southern end of the

island, but it is otherwise mostly uninhabited and covered by lush rainforest. Along the east

coast of Rao are empty black sand beaches backed by rainforest, areas certain to be

attractive to tourists.

The new local government’s inclination towards sustainable tourism provides a great

opportunity to develop the key attractions that have a direct impact in the proposed MPA

30 ‘Walking shark' discovered in Indonesia, The Guardian, 30 August 2013

https://www.theguardian.com/environment/2013/aug/30/walking-shark-discovered



January 2018

19

with an environmental focus, thus creating mutual benefits for the population that depends

on MPA’s resources, the government agencies tasked to support tourism activities, and

achieving USAID SEA’s core objectives. The following section outlines some opportunities

to further develop each of the aforementioned attractions.

An Overview of Tourism and Demersal & Reef Fisheries Sectors in Indonesia and a Rapid Assessment of the Tourism & Fisheries Sectors in Morotai Island, North Maluku

January 2018

20

Summary of main attractions within the boundaries of the proposed MPA and opportunities for further development

Attraction Key features Opportunities

Dodola

island Inhabited island with

pristine white sand

beaches.

Jet Ski and banana boat

rental.

Conduct carrying capacity study to determine the adequate number of visitors that will ensure

minimal damage to coral reefs.

Improve management of Jet Ski and banana boat operations to minimize damage to marine

habitats such as reefs and sea grass beds, and minimize disturbance to marine animals such as

turtles and dugongs.

Explore the development of additional activity offerings focused on day visitor traffic, such as

restaurants, beach club for day-use, massage, and snorkeling safaris.

Develop sustainability practices for food sourcing to support restaurants and local communities

that are dependent on marine resources to prevent overfishing or unsustainable fishing

practices such as catching juvenile fish.

Repurpose the cottages already built by the government for a day-use beach club and potential

snorkeling center.

Train local community from surrounding villages, such as Kokoya, to manage and operate the

new activities, including delivering high quality service, hygiene and adherence to the

sustainability parameters established.

Establish no single use plastic policies and improve waste management to discourage practices

of burning waste and reduce plastic waste washing up on the beaches.

Zum Zum

island Statue of US General

MacArthur.

Improve the maintenance of the site to ensure the monument and adjacent property is well

kept and appealing.

Train local community to act as local guides to describe the important events that happened in

Morotai during WWII.

Develop interpretation materials to support local guides and enrich the visitor’s experience.


of burning waste, reduce plastic waste washing up on the beach entrance to the statue and

maintain the island’s aesthetic value.

Kokoya

island Small, inhabited island with

rich local culture.

Homestays operated by

local community offering

traditional dishes and local

cultural experience.

Develop a minimum quality standard on the accommodation including the aesthetics of the

room, cleanliness standards and bathroom infrastructure to cater to national and international

visitors and provide support to current homestay owners to adhere to the minimum standards.

Train homestay owners on service delivery to ensure a minimum quality standard on the

accommodation and service provided to visitors.

Train homestay owners and souvenir shopkeeper on basic bookkeeping and business


January 2018

21


Small souvenir shop selling

local crafts.

management skills to support them to promote and manage their businesses.

Develop a central system to facilitate bookings and payments, especially for foreign visitors.

Train homestay owners on the adherence to food sustainability guidelines and food hygiene.

Improve the quality and quantity of the inventory of souvenir shop, focusing on best sellers and

items that reflect the uniqueness of the local community.

Develop other activities that promote the island’s unique culture to entertain day and overnight

visitors, such as traditional dancing events, food competitions and local singing contests.

Develop a catalog of all activities from surrounding villages, such as diving, snorkeling and island-

hopping trips to promote longer stay in Kokoya.




Diving Different options of diving

such as diving with sharks,

coral reef dives, and plane

and ship wreck dives.

Reports of frequent dugong

sightings.

Presence of the Halmahera

walking shark, endemic to

the area.

Conduct carrying capacity study to determine the maximum number of divers present within

the MPA’s different zones that will minimize risk to the marine habitat and species present in

the area.

Develop an overall monitoring program for key marine species, such as sharks and dugongs, and

integrate local dive operators in monitoring efforts.

Develop Standard Operating Procedures (SOP) and guidelines for dive operators focusing on

appropriate health and safety procedures, proper equipment, diving procedures to minimize

reef damage and species interaction, particularly important for shark feeding during dives.

Develop a training program for dive guides on the SOP, site interpretation and guiding to

ensure the quality of service provided.

Develop tourist code of conduct to educate divers about the marine habitat and species, as well

as the adequate behavior during dives to minimize impact to the habitat.



maintain the MPAs aesthetic value.

Rao Island Lush, mostly uninhabited

island with pristine

rainforests and black-sand

beaches.

Develop regular tourism transportation links to the island: there is currently only an infrequent

ferry from Morotai, otherwise visits to the island can only be made on costly private boats from

Daruba.

Form and train a group of local residents to offer homestays for tourists; development of this

industry should mirror the activities needed in Kokoya Island.


January 2018

22


Develop dive sites around the island, following the guidelines outlined above for diving.

Explore the development of additional activity offerings focused on day visitor traffic, such as

restaurants, beach club for day-use, massage, snorkeling safaris and land trails taking advantage

of the pristine rainforest landscape.






January 2018

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Tourism operators – Accommodation

According to Dinas Pariwisata, Morotai currently has 183 rooms across 17 registered

establishments.31 Estimating an average occupancy of 1.5 guests per room and all hotels

open 365 days per year would yield a total capacity of 100,193 annual guests. This is well

below the capacity required to reach national government’s objectives of reaching 500,000

annual tourists by 2019. The local accommodation capacity could be sufficient to reach

humbler objectives of the local Dinas Pariwisata of 20% annual growth in visitors. However,

the head of Morotai’s Dinas Pariwisata indicated that whenever there are events, the island

does not have sufficient accommodation capacity to cope with the visitor demand. To

manage the scarcity of accommodation, government-organized events such as the Wonderful

Morotai 2017 (see under section “Profile of tourists”) have a total cap in the number of

places available and attendees must sign up in advance.

Figure 5: Hotels registered with the Dinas Pariwisata in Morotai

Hotel Name Type of hotel Within MPA area of

influence

Interviewed for

rapid assessment

1 D'Aloha Resort Mid-range hotel Yes Yes

2 Moro Madoto High-end eco-resort No Yes

3 Ria Hotel Budget hotel Yes Yes

4 Pasific Inn Budget hotel Yes Yes

5 Morotai Inn Budget hotel Yes Yes

6 Perdana Budget hotel Yes Yes

7 Dodola hotel Budget hotel Yes Yes

8 Antrimel Budget hotel Yes Yes

9 Sintayu Budget hotel Yes Yes

10 Marina Putri Budget hotel Yes No

11 Pertiwi Budget hotel Yes No

12 Singga Dulu Budget hotel Yes No

13 Tonga Budget hotel Yes No

14 Permain Indah Budget hotel Yes Yes

15 Makassar Budget hotel Yes No

16 Ampera Budget hotel Yes No

17 Fikri Homestay Yes Yes

Source: Dinas Pariwisata, July 2017

Interviews with accommodation service providers in Morotai

The rapid assessment team interviewed 11 accommodation providers located in South Morotai, ranging from hotels to homestays. These 11 establishments have a combined 154

rooms (84% of the total reported) and 173 beds, employ 65 people, and contribute

approximately IDR 21,250,000 (USD 1,570) to the local economy annually by contracting

additional services such as transport, laundry and food. Figure 6 below summarizes key data

obtained from each hotel.

31 As reported by the head of Dinas Pariwisata in Morotai in July 2017. There are no records from individual hotels to corroborate this figure.



January 2018

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The accommodation offerings range from simple homestays and low-budget, basic hotels to

a luxury eco-resort located outside proposed MPA’s area of influence. Generally, none of

the current accommodation offerings, with exception of Maro Madoto, have the adequate

infrastructure, amenities or level of service to cater to demanding international tourists.

They can cater to low budget international travelers who are after ‘off the beaten path’

destinations and have a higher acceptance for low-quality service and accommodation.

There is one hotel that can be considered mid-range – the D’Aloha Hotel – but the service

it provides is still not up to international standards and its pricing is high for the quality of

service and accommodation it delivers. Based on the current accommodation offerings,

Morotai can cater only to low-budget international tourists and national tourists.

Generally, apart from the D’Aloha Hotel and Maro Madoto, all hotels interviewed are small,

family owned and operated by long-term residents of Morotai. Each of the budget hotels

was started with investment from the owners, sometimes in a building adjacent to their

home. Jababeka, a large Indonesian developer and the owner/operator of the D’Aloha hotel,

received the rights from the national government to develop tourism in South Morotai.

Most of the hotel employees are from South Morotai (88% of the 65 identified hotel employees) and the remaining employees are Indonesian nationals from other islands. The

salaries paid for the non-family member staff range between IDR 700,000 (USD 50) per

month for budget hotels to IDR 2 million (USD 150) at the D’Aloha, the highest paying

employer. Only the D’Aloha offers long-term contracts with its employees or provides

benefits such as BPJS. Despite the lack of contracts there is low staff turnover, possibly due

to lack of alternative equal level employment. All hotels except for D’Aloha have only a few

staff.

The general record keeping and financial management of all the budget hotels is poor. The

responses summarized in figure 6 were provided based on anecdotal estimates from the

respondents rather than on written records. D’Aloha keeps its records in Jakarta and those

were not available for the interview. All hotels are expected to pay local taxes of 10% of the

room cost per day, as well as other taxes. Homestays are exempt from tax payments. Given

the lack of financial records, it is not possible to determine which hotels are complying with

the local tax law. As the national and local governments want to promote tourism to

Morotai as one of the key 10 destinations, and the number of hotels on the island is still

relatively small, there is an opportunity to support the local Dinas Pariwisata in providing

financial management training and improve the hotels’ record keeping and tax compliance.

This will help the government to better understand the number of tourists, their profile in

terms of nationality, length of stay and purpose of the visit, and also support more accurate

growth projections. Furthermore, strengthening the hotel’s financial management would

likely lead to increased tax revenues.

Marketing is done primarily by word of mouth for all hotels, except D’Aloha, which has a

booking agent in Jakarta and banner in the Ternate airport. It is also featured on Trip

Advisor.32 The hotels do not have an electronic booking system and often bookings are

made by phone calls and recorded on paper. This can be challenging for international

tourists who are accustomed to electronic booking services. There is an opportunity to

increase the level of awareness of tourists that come to Indonesia about Morotai and

supporting the integration of these hotels into booking service agents, such as Booking.com,

Tripadvisor, Agoda, and Traveloka (mainly for Indonesian tourists).

32 https://www.tripadvisor.com/Hotel_Review-g800482-d10130129-Reviews-D_Aloha_Resort-Morotai_North_Maluku_Maluku_Islands.html



January 2018

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General environmental impact and impact to the proposed MPA are hard to estimate, as all

hotels do not record their water usage or waste generation. Waste management generally is

very poor, with some hotels even burning their own waste adjacent to their facilities. The

local government plans to improve the overall waste management capacity with increased

collection and improved waste treatment facilities with the capacity to recycle. However,

these projects are still in the planning stages. The success of any recycling program is likely

dependent upon a strong capacity building and public communications campaign, as the level

of awareness of waste management is generally very low.

Most of the hotels have diesel generators, as electricity on the island is unreliable. For water

treatment, the hotels have septic tanks, but the quality of the water treatment is not clear,

nor is the amount of water that is dumped into the sea. As the southern part of Morotai is

included within the current delineation of the MPA boundaries and there are plans to

increase the number of hotels on the southern part of island, it is imperative to understand

the potential impacts of wastewater and sediment runoff on the marine habitat.

Overall, all hotels interviewed like the SEA project’s plans to create an MPA in Morotai.

There is apparent consensus among the hotel sector that the MPA can attract additional tourists and provide tangible economic benefits to the sector. It is critical to leverage the

positive perception of the MPA and integrate the private sector hotel operators into SEA’s

MPA planning and implementation process. The buy-in from this sector can be instrumental

to information dissemination to tourists and local communities about the guidelines of the

MPA, once those are developed.


January 2018

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Figure 6: Summary of key data of accommodation establishments interviewed

Hotel D'Aloha Fikri Antrimel Perdana Ria Sintayu Marina

Putri

Morotai

Inn

Pacific

Inn

Penginapa

n Dodola

Penginapa

n Permai

Year opened 2012 2012 2012 2011 2012 2012 2012 2012 2008 2012 2012

Number of rooms 25 8 8 20 12 20 7 8 21 10 15

Number of beds 33 8 8 30

12 21 7 8 21 10 15

Average price per

room per night (IDR)

726,000 -

968,000 150,000

200,000 -

300,000 250,000

440,000 -

550,000

100,000 -

200,000 200,000 350,000 275,000

100,000 -

300,000

100,000 -

200,000

Days open per year 365 365 350 351 365 363 365 351 365 362 365

Average occupancy 45 - 55% 40% n/a 70 - 80% n/a 30 - 40% 40 - 50% 40 - 50% n/a 40 - 60% 30 - 40%

Number of national

employees 6 0 0 2 0 0 0 0 0 0 0

Average monthly

wage (IDR) n/a n/a n/a 1,500,000 n/a n/a n/a n/a n/a n/a n/a

Number of local

employees 37 2 1 1 5 2 3 4 2 0 0

Average monthly

wage (IDR) 2,000,000

No wage,

family

No wage,

family 1,500,000 1-2 million 1,000,000 700,000 1,000,000

1 - 1.5

million n/a n/a

Non-labor operating

expenses as a % of

revenue

50% n/a n/a 60% n/a 10% n/a n/a n/a n/a 80%

Percentage of local

ownership 0% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Estimate monthly

expenditure on other

services (IDR) (1)

1,000,000 500,000 3,700,000 3,250,000 n/a 1,400,000 3,900,000 2,000,000 600,000 3,900,000 1,000,000

Estimated annual tax

payment (IDR) (2) 4,000,000 0 400,000 5,000,000 n/a 2,500,000 700,000 5,000,000 n/a n/a 350,000

Source: interviews with managers, owners, or staff of accommodation establishments, July 2017.

n/a = not available or not able to answer

(1) Other services indicates expenses on laundry, transport service, food, etc. that are contracted outside the hotel. These figures are anecdotal and cannot be verified.

(2) Statutory income tax rate for hotels is 10%. There are other taxes hotels have to pay, however. These figures are anecdotal and cannot be verified.



January 2018

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Profile of D’Aloha Hotel, Morotai

With 25 wooden cottages, the D’Aloha Hotel is located in Juanga village, South Morotai and

offers mid-range accommodation near some of the island’s main attractions. Built by

Jababeka, an Indonesian developer, its initial target clientele was investors visiting the island.

It now targets tourists and government events, as its restaurant can cater to 150 people, the

largest restaurant capacity in the island. Hotel guests are primarily from Indonesia

(estimated 85% of the clientele), with foreign guests coming primarily from UK, Spain,

France, Taiwan, and China. In addition to accommodation it provides transportation to

guests wishing to visit sites around Morotai. It also offers diving packages (Morotai Dive

Center is located on its premises), island hopping, and snorkeling. Its management perceives

island hopping, diving and visit to historical sites to be the main attractions for visitors who

come to Morotai. The manager indicated that while the guests are generally satisfied with

the natural attractions, he indicated that tourists are often disappointed by the lack of

supporting facilities in the historical sites. Of all the hotels in the island, the D’Aloha hotel

has the most developed promotional program with advertisements in the Ternate airport,

exhibitions in Bali and Jakarta, and advertisements with travel agents such as Panorama Tours and others in Ternate, as well as information on the Jababeka website. Bookings are

still mostly made by phone and rarely by email. In contrast to other hotels in Morotai that

can only receive cash payments, the D’Aloha can process credit card payments and

payments in other currencies.

High season: July – November, when government employees have trainings or other

events. Tourism typically peaks around November – December.

Low season: January – February

Future plans: After 2018, plans to build an additional 100 villas on 3 hectares along the peninsula.

Tourism operators – Diving

There are two dive operators in Morotai: Shark Dive Indonesia and Dive Morotai.

Shark Dive Indonesia is the pioneer dive operator in Morotai, starting the first

excursions to the island’s marine resources in 2009. Mr. Darmawan, Shark Dive Indonesia’s

Jakarta-based owner and an experienced exploration diver, affirms that his decision to start

this dive operation was driven by Morotai’s unique shipwrecks, shark and devil ray habitat,

and its underwater volcano. Initially starting the shop as a hobby, Mr. Darmawan has

focused on the business over the last two years, and had 180 guests in the first half of 2017

and 100 guests the previous year. He has also been building local capacity, training over 30

dive guides in Morotai and Tobelo, and conducting surveys and monitoring of the shark

population in Morotai.

Shark Dive Indonesia’s most popular offering is a 4 day-3 night package with 6 dives costing

IDR 5 million (˜USD 370) including accommodation, food and transport in Morotai. Guests

typically stay at the D’Aloha Resort. The dive center owns a boat and rents an additional

boat when required.

Mr. Darmawan plans to expand his business by building eco-huts and developing an

incubator for Indonesian scientists to expand his program, which has already brought 7

shark student scientists and 1 devil ray scientist to Morotai.

Dive Morotai, located adjacent to D’Aloha Resort, is owned by a local person from

Morotai and has been operational since 2015. It has equipment to suit a total of 9 divers and

capacity to guide 6 divers per trip with a maximum of 3 dives per day. The dive center does



January 2018

28

not own any boats and usually rents a 6-person boat from the D’Aloha Resort. Dive

Morotai takes between 5 to 7 groups of 4 to 7 people per month and divers stay between 3

to 5 days in Morotai. However, it does not maintain any records of the number of annual

guests, thus, it is not possible to estimate their impact on tourism or the marine resources.

Anecdotal information from the manager indicates that the demand in diving trips from Dive

Morotai has increased over the last three years and he estimates that the dive center had

between 70 to 80% occupancy in 2017. As there are no records of guests or revenues, it is

not possible to corroborate the manager’s estimates.

Most of the divers come from Jakarta, Bandung, Surabaya, and abroad. The dive center’s

main marketing tools are word of mouth, social media (Instagram and Facebook), and a

travel agent in Jakarta and Ternate. The dive center offers different dive packages ranging

from IDR 2,720,000 (˜USD 200) per diver for 3 dives a day for 1 diver; IDR 1,645,000 (˜

USD 120) per diver for 3 dives a day for 2 divers; and IDR 1,400,000 (˜USD 100) per diver

for 3 divers for 3 dives a day. They consider the high season to be between November and

December and the low season to be between June and July. Currently there are 8

employees at the dive center – 4 dive guides, 2 compressor men and 2 porters – all from south Morotai. The staff does not have contracts and is paid per trip without any other

benefits such as BPJS.

Without systematic, written records from the dive operators, it is difficult to understand

the current impacts of these two operators on the marine resources and estimate the

potential impact if both businesses were to grow. Additionally, qualitative information on

the level of training of dive guides and their underwater conduct makes it difficult to

ascertain if there are additional threats to the marine habitat from improper conduct.

Tourism operators – Transportation

There are two types of transport service operators in Morotai that serve the tourism

sector: speedboats, which take guests to the adjacent islands (Dodola/Kokoya), and cars for

hire with driver, which can take tourists around land-based attractions.

The main boat pier in Morotai has been recently renovated and there are a number of boats

stationed on the pier every day ready to take tourists to the nearby islands. These are the

same speedboats that go to Tobelo on a daily basis (see “Access to Morotai” section

above). When the speedboats are hired to for trips to nearby destinations such as Dodola

Island they charge IDR 800,000 (USD 56) and, as with trips to Tobelo, can accommodate up

to 18 passengers.

For car rental with driver service, the standard charge is around IDR 500,000 (USD 35) per

day, excluding fuel. Of the boat captains and car drivers the assessment team interacted

with, the level of English is very low, posing challenges for foreign tourists. When the

assessment team enquired about moped rentals for tourists, which would allow for more

independent exploration of the island, we were told there were none available.

Tourism operators – Food service providers

Around Morotai there are 26 small restaurants registered with Dinas Pariwisata that serve

common Indonesian dishes and locally caught seafood, and cater mostly to the local

population. These restaurants are locally owned and operated, and it is assumed that most if

not all of these restaurants are in Daruba as the assessment team did not identify any

restaurants in any of the villages visited outside of Morotai’s main city. The aggregate

number of seats at these restaurants is 838.



January 2018

29

The local restaurants in Daruba are located in roughly two areas: those scattered around

the city center, and a cluster of fresh seafood restaurants on the waterfront. The

restaurants in the city typically cater to lunch guests, while the waterfront restaurants were

typically open only for dinner. All of these restaurants are operationally similar: two or

three staff preparing food after it has been ordered. As such, it was common to receive

food 30 minutes or more after the order was placed.

Pricing of food was approximately IDR 20,000 to 30,000 per person per meal, with items

like chicken more expensive than fish. Cleanliness varied across restaurants – while basic

sanitation did not seem to be an issue and the food was mostly quite good, the appearance

of almost all these restaurants was not up to international tourism standards. The most

appealing restaurants are those on the waterfront. Though basic, with plastic tables and

chairs, the outdoor seating is very atmospheric and perfect for sunset or stargazing.

The only restaurant catering specifically to tourists is the restaurant at D’Aloha Hotel. The

service, selection, and appearance of the restaurant is better than any other restaurant on

Morotai, but, as in other restaurants there, the food often arrived 30 minutes or more after

ordering. The food at D’Aloha was often inferior to that served at the local restaurants.

Profile of tourists

The Dinas Pariwisata voluntarily collects data on a monthly basis from the hotels regarding

the number of guest days, nationality, and purpose of visit. However, there is no

requirement to comply with this reporting and the data is often recorded late, if at all.

Based on the available hotel data gathered by Dinas Pariwisata, in 2016, 17 reporting hotels

indicated a total of 4,398 guest days, with October 2016 being the highest reported month

with 585 guest days. A monthly breakdown is included in figure 8. The number of guest days

is underreported, as there are numerous omissions in the reported data where the length

of stay per guest has been left blank.

Figure 7: Total reported guest days in Morotai Hotels

Nationality Length of Stay

(days)

% of total days

International 104 2%

Domestic 2,925 66%

Not reported 1,370 31%

Total 4,398 100%




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30

Figure 8: Length of stay of guests in selected hotels in Morotai in 2016

According to the data from the hotels collected by Dinas Pariwisata for 2016, the majority

of reported guest days were for visitors on holiday (27% of guest days reported), while the

second highest number of guest days was for visitors on government duty (12% of guest

nights reported). Approximately 54%

(2,388 guest days out of 4,398) were not

reported in the Dinas Pariwisata’s records

(see figure 9).

With the national government’s push to

develop Eastern Indonesia, numerous

government meetings and government

training events have been held in Morotai.

Interviews with owners and staff at

several hotels and homestays indicated

that these events are believed to be the

main drivers of visits to Morotai. Some of

the guests do visit some of Morotai’s

attractions such as Dodola Island and

other beaches; however, the attractions

are not the primary purpose of their stay.

Two-thirds of guest days reported in 2016

were from Indonesian nationals, while international visitors represented 2% of all

guest days in 2016. About 1,370 guest entries (31% of all guest days) do not contain

information about nationality. Most of the guest days from international visitors come from

Germany (with 26% of guest days), followed by visitors from USA, which accounted for

14.4% of guest days in 2016 (see figure 10 for full detail).

PurposeofvisitofgueststoMorotaiPercentageofguestdaysbypurposeofvisitJanuary– December2016

Source:Morotai Dinas Pariwiasata

Notes:

(1) Atotalof4,398daysreportedin2016.(2) ”Notreported”reflectentrieswherethepurposeofthevisitwasnotrecorded.2,388

entrieshavenotbeenreported.

(3) Datareportedbythe17hotelsinMorotai registeredwiththeDinas Pariwisata.(4) Notallhotelsreportdatamonthly.

Notreported

54%Holiday27%

Governmentduty

12%

Business6%

Other1%

Figure 9: Purpose of guest visits to Morotai, 2016



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31

Figure 10: Country of Origin of international guests, 2016

Country of

Origin

Length of

stay (days)

% of

Total

Netherlands 1 1.0%

Hong Kong 3 2.9%

Italy 3 2.9%

India 4 3.8%

Australia 5 4.8%

China 5 4.8%

France 8 7.7%

Japan 9 8.7%

UK 10 9.6%

Spain 14 13.5%

USA 15 14.4%

Germany 27 26.0%

Total 104


The Morotai Dinas Pariwisata launched a series of four events in 2017 to attract visitors –

dubbed Wonderful Morotai, this initiative includes an underwater photo competition, a fishing

competition, a marathon, and a music festival. However, the head of Dinas Pariwisata

indicated that there are issues with accommodation and accessibility, limiting number of

people who are able to attend the events. Dinas Pariwisata intends to hold a similar event

annually. The Wonderful Morotai event related to underwater photography is expected to

attract tourists interested in marine wildlife and could be beneficial for the MPA plans.



January 2018

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Summary of opportunities to support tourism operators

Type of

operator

Main challenges Opportunities

Hotels Lack of records (financial,

guests, impact to local

environment)

Develop training on simple financial

management for hotels, including a

module on guest tracking to improve

Dinas Pariwisata’s tourist data on length

of stay and number of tourists.

Integration of hotels into booking service

agents, such as booking.com, Tripadvisor,

Agoda, and Traveloka to improve their

marketing, increase their accessibility by

tourists and ease the booking process for

guests.

Develop environmental impact guidelines

particularly focusing on zero single use

plastic, water and waste treatment

coupled with a capacity building and

public communications campaign and

train hotels on the implementation of

these guidelines.

Further understand the impact of water

waste to the marine habitat.

Integrate hotel sector into the planning

and implementation of the MPA.

Dive

operators Lack of systematic data on

number of divers and most

frequently visited dive sites to

determine potential threat

posed by increase in divers to

marine environment.

Lack of information on the

code of conduct and level of

training of the dive centers in

handling marine habitat and

mega fauna to determine if

there are threats posed by

inadequate conduct or

increased visitor numbers.

Develop a joint monitoring program

between the SEA Program and the two

dive centers to account for the number

of divers, locations of dives, and sights of

key species (e.g. sharks and dugongs) that

could bring additional value to Morotai’s

proposed MPA.

Develop a code of conduct on

acceptable diving procedures and train

staff in both dive centers to also monitor

mega fauna sightings and dive numbers.

Opportunities for development of the tourism sector in Morotai

As tourism is nascent in Morotai and the new local government has demonstrated openness

to promote sustainability within the island’s new master plans, there is a unique opportunity

to promote ecotourism and its connection with the planned MPA as cornerstones of the

master plan. The key opportunities to develop the tourism sector are summarized below.

1. Promote Morotai as an ecotourism destination with historical

significance. As the industry offerings are at a very early stage of development, it is

possible to plan with sustainability in mind and position the island as an ecotourism

destination with historical significance. This will be a key differentiator of other

important ecotourism sites in Indonesia, such as Komodo and Bunaken, which do

not have Morotai’s rich historical significance.



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33

2. Imbed ecotourism within local government master plans. Key government agencies

that impact tourism development, such as Dinas Pariwisata and Bappeda are writing

their master plans and plan to finalize them in 2018. Top decision makers, including the new Bupati, seem amenable to including sustainable/responsible tourism development, so this is a critical time to ensure the plans contain the key elements of sustainable tourism.

3. Use local private actors to promote the MPA and its link to tourism.

There are local private actors actively championing the ecotourism as a driver for

development in the island. The owner and staff at Maro Madoto, even though they

are not in the MPA area of influence, can be important allies to lobby local

governments and other private sector stakeholders to promote the establishment of

the MPA and ecotourism as an intrinsic part of tourism development in the island.

Mr. Darmawan, the owner of Shark Dive Indonesia, can also be an important ally to

champion the MPA and ecotourism development.

4. Increase the capacity of local government officials about existing tourism

standards to encourage adoption of sustainably responsible tourism

and/or ecotourism. There are existing standards that have robust criteria that

could provide a roadmap for the sustainable development of tourism and Morotai.

One example is the Global Sustainable Tourism Council, further described below. It

is important to empower local government officials, such as the heads of Bappeda

and Dinas Pariwisata, with knowledge and experience integrating these standards

within their master plans.

Challenges and constraints to tourism development in Morotai

While there are many opportunities to support the development of tourism in Morotai,

there are also several challenges and constraints that currently curb tourism expansion. The

key challenges and constraints are listed below.

Travel time is longer when compared to other destinations in Indonesia. Reaching Morotai still takes a lot of time from main international hubs in Indonesia,

such as Bali and Jakarta, as there are no directly flights. Connections in Ternate are

needed and the quickest travel time is from Jakarta to Morotai estimated in 5 hours.

This is a main challenge to promote tourism of international guests when compared

to other destinations in Indonesia that are reachable directly – such as Komodo,

which benefits from daily flights from Bali to Labuhan Bajo (40 minute flight) or

Bunaken, which benefits from direct flights from Jakarta to Manado (3h40m flight).

Current public infrastructure is not adequate to cater to increased tourist

inflows. The main roads are in good condition and circle almost the entire island,

but supporting infrastructure such as electricity water supply, water treatment and

waste management is lacking. This is particularly important for the nascent hospitality sector and for compliance with international tourists’ standards or eco-

tourist’s desires. All accommodation establishments have generators to supplement

their electricity needs and have a local water pump. There is no recycling in the

island and waste management in the main city (Daruba) is inconsistent. There is a

new local harbor in Daruba (south of the island), but there is no marina

infrastructure or accompanying service providers for large vessels such as private

yachts or dive boats to dock in Daruba.



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34

Limited private infrastructure. With a total of 17 accommodation

establishments of different standards, offering just 183 rooms across the island, the

island is significantly under capacity to deliver on any tourism development plan.

Massive investments in hotel infrastructure must be made to cater to the expected influx of tourists. The situation with food service providers is similar. The

restaurants currently operating – 26 restaurants with 838 total seats – are

inadequate in terms of both quantity and quality. Land transport options are also

limited to car rentals and there are no rental motorbikes available on the island

currently.

Private sector is not prepared to cater to tourists. Of the hotels currently

operating, just two or three approach the standards expected by international

tourists. All restaurants visited by the assessment team were not up to international

tourism standards, and focused mainly on serving the local population in Daruba.

English language skills among hotels, restaurants, museums, boat captains, car drivers,

and scuba diving guides are very limited or non-existent. Additionally, information

about additional services, sightseeing attractions or guided tours are not available by

tourism operators.

Potential impact of planned direct flight from China to Morotai could change the type of tourists the island attracts. A sudden, sharp increase in

tourist arrivals would likely overwhelm the limited capacity of Morotai’s tourism

sector. A mass tourism influx can also constrain the development of ecotourism as

an important niche for Morotai. The expansion of tourism infrastructure resulting

from increased arrivals, if not properly planned and vetted, would likely result in

detrimental impacts on the marine (and terrestrial) environment from

deforestation/runoff, solid and liquid waste emissions, increased demand for fish, as

well as from the need to develop mass tourism attractions suitable for this tourism

segment.

Action Plan to support tourism development in Morotai

There is a lot of momentum around tourism development in Morotai with the national

government’s inclusion of the island within the “10 New Balis” plan and the recent change in

government leadership in the island. As noted, sustainability is a concept that resonated with

the heads of the key government agencies that drive tourism development and

infrastructure, as well as some private sector stakeholders. However, significant effort is

required to seize this momentum and ensure that sustainability within the tourism sector

percolates through all stakeholders, from government officials to inhabitants of the small

islands that are included within the proposed area of the MPA. The following action plan

details some tangible suggestions for the SEA Project’s consideration.

1. Engage and support local government offices. The capacity, both in human

resources and knowledge of the two key agencies – Bapedda and Dinas Pariwisata –

can be supplemented with support from experts from the SEA Project. As these

agencies prepare their master plans, they are not only open to support, but can also

benefit from innovative ideas from SEA Project Partners, especially for areas where

they lack expertise, such as developing guidelines for sustainable tourism (or

ecotourism) or understanding the impacts of their infrastructure development plans

on their key asset, the natural marine habitat surrounding the island. The SEA



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Project can convene a workshop or meeting with these key stakeholders to increase

their knowledge on these areas and ensure that they feel supported with access to

experts as they work on their master plans.

2. Involve the private sector in the MPA plans and sustainability discussions.

The excitement about developing Morotai as an ecotourism destination was palpable

amongst some of the private sector tourism operators. There is a strong

opportunity to strengthen their role within the MPA development, by providing

them with knowledge about the proposed MPA boundaries, describing how they can

support the MPA efforts and engage them in the discussions.

3. Develop capacity building modules/information campaign targeted at

different stakeholders. There are other private sector operators who will need

more support to understand the potential benefits of having an MPA in Morotai and

promoting ecotourism. It will be particularly important to develop an information

campaign or training modules for each of the key stakeholders that will impact

tourism in the island: small hotel owners/managers, restaurant owners/managers,

inhabitants of impacted villages who cater to tourists with homestays, boat operators, ect. The information campaign can be done in collaboration with Dinas

Pariwisata and perhaps utilizing their existing network of volunteers to disseminate

the information.

4. Develop local champions. There is the potential to engage local champions

amongst the private and public sectors, to further the development of ecotourism

and promote the proposed MPA in Morotai. During the assessment, two private

sector individuals were identified as having a strong potential to play the role of local

champions – the manager of Maro Madoto and the owner of Shark Dive Indonesia.

Additionally, the head of Dinas Pariwisata and Bappeda are strong candidates in the

public sector to champion the SEA Project’s goals.

5. Select a suitable sustainability guideline. It is important to select an ecotourism / sustainability guideline that will be promoted throughout the project to avoid

confusion and ensure that the same message is delivered throughout. Whatever

guidelines outlined in the ecotourism sector are selected by the SEA Project, it will

be important to ensure they are available in Indonesian and included in the training

efforts mentioned above.

6. Evaluate the pros and cons of massive tourism development. While the

head of Dinas Pariwisata was extremely supportive of sustainability and ecotourism,

it is likely that he will need more arguments, in the form of data, to determine

adequate tourism arrival targets within his master plan. The SEA Project is in a

strong position to provide additional data through the economic modeling to

empower and support the Dinas. This could be conducted during the next field visit

planned by Marine Change in March 2018.



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4. Overview of the demersal and reef fisheries sector in Indonesia

Costal fisheries provide an important source of food and income to coastal populations the

world over and are particularly important for small-scale fisheries. In tropical areas, small-

scale fisheries often take place directly on coral reefs and depend on the health of the reef

for productivity. Indonesia’s coral reefs are among those with the highest biodiversity on

earth. With some 51,020 km2 of coral reefs, the country has about one-fifth of the coral

reefs on the earth.33 These reefs and associated habitats, such as mangroves and sea grass

beds, play a crucial part in maintaining fish populations and are a home to a wide variety of

fish species.

The health of these ecosystems is increasingly in danger through destructive and over – and

destructive fishing, coastal pollution and development as well through climate change

impacts such as coral bleaching, diseases etc34. It is vital to maintain the health of these

ecosystems in order to preserve the valuable ecosystem services they provide, especially

fisheries and tourism. MPAs are a popular tool in protecting biodiversity in coastal areas. If

they are of sufficient size, include strong fishery rules and regulations including no-take

zones and are implemented and resourced properly, they can provide an effective way of

sustainably managing the coastal fishery resources and ensuring sustainable livelihoods of the

nearby populations as well as protecting coral reefs themselves.35

In Indonesia the value of coral reefs and the ecosystem services they provide, especially

fisheries, have not been evaluated in detail in recent times,36 although such studies have been

conducted elsewhere.37 A economic valuation of coral reefs in Indonesia was conducted in

1996, which estimated that for example, coral minining is estimated to yield net benefits to

individual of USD 212 000 per km2 of reef while causing net loss society of USD 93 000 in

fisheries, up to USD 260 000 in coastal protection, up to USD 481 000 in tourism value and

USD 67 000 in forest damage (in 1996 value terms) 38.

Fish caught inside and adjacent to MPAs often include reef species that comprise a very high

diversity of fish families. In the coral triangle, this is generally over 40 families of fish, and

almost 2,000 individual species.39 In addition, species like octopus, crabs, and invertebrates

are collected from coral reefs, as well as various demersal and pelagic species that do not

live directly on the reef but are caught in adjacent waters. The different species hold varied

economic, food security, and cultural importance to local communities. The value of the

different species will vary depending on the local biodiversity, culture, connectivity and

availability of markets and infrastructure such as cold storage and ice.

Despite their proven effectiveness in restoring fish stocks, it is well documented that MPAs,

and particularly no-take areas, often meet resistance from coastal communities in fear of

declines in local incomes. In many places in Indonesia this may be changing as the true value

of ecological functions becomes apparent, for example when loss of marine biodiversity

resources has already led to economic losses to coastal communities. Communities are

33 Dutton IM, Djohani R, Sastrapradja SD, Dutton KD. Balancing biodiversity conservation and development in Eastern Indonesia. In:

Resosudarmo BP, Jotzo F, editors. Working with nature against poverty—development, resources and the environment in Eastern

Indonesia. Singapore: Institute of Southeast Asian Studies; 2009. p. 125–46. 34 H Cesar (1996). Economic Analysis of Indenesian Coral Reefs. 35 E Selix & J Bruno. A global analysis of effectiveness of MPAs in preventing coral loss (2010).

https://doi.org/10.1371/journal.pone.0009278 36 M Spalding et all (2017) Mapping the global value and distribution of coral reef tourism. Volume 82, August 2017, Pages 104-113 37 http://www.ivm.vu.nl/en/Images/2001_TEEB_Fishing-brief_O_09_tcm234-309202.pdf 38 H Cesar (1996). Economic Analysis of Indenesian Coral Reefs. 39 http://www.reefbase.org/global_database/dbt5,32,IDN,1.aspx



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increasingly recognizing that controlling their fisheries from destructive and unsustainable

activities, whether temporarily or permanently, is a promising tool to restore fisheries

stocks. 40 In order to support the creation of MPAs and to steer further community

acceptance of the management measures needed, it is important to understand the value of

coastal small-scale fisheries in more detail – what are the main species, what techniques are

used, and where does value lie for the local community.

This sector overview looks at available data in Indonesia for main species of importance for

both food security and economic activity that is commonly based around MPAs (excluding

pelagic fisheries). The report then looks at select case studies of challenges in value addition

in MPA-based fisheries in Indonesia, and lastly makes recommendations on suitable entry

points to address sustainable fisheries in coastal MPAs.

Small-scale fisheries management

The Indonesian Ministry of Marine Affairs and Fisheries (MMAF/KKP) is responsible for

fisheries management outside of 12 nautical miles (nm) and up to 200 nm. The

district/municipal authorities are responsible for inshore fisheries management between 0-4nm and the provincial governments are responsible within 4-12 nm of the coast.

Throughout Indonesia, small-scale fishing boats below 5 gross tons (GT) are not licensed

but they are required to register with the municipality. Vessels up to 10GT are considered

small-scale and vessels above 5GT need a license and need to submit fishing logbooks as

well as obtain vessels permits to sail. Vessels between 10-30GT are required to get a license

from the municipality and above 30GT from the central government.

There are specific regulations regarding fishing gears and the zone they are allowed to

operate in. For example, handline (pancing) fishing using a single hook can take place

anywhere, but pole and line (huhate) tuna fishing has to take place outside the 12nm zone.

Similarly, different net sizes are restricted to different coastal zone areas. Some gear types

such as muroami, the use of bombs or cyanide, are banned entirely. It is also illegal to use

more than one gear type per fishing vessel, a rule often ignored by the near shore fishers

who may use several gear types (compressor/spear gun/handline).

The vessel registration, licensing and logbook as well as permits to sail requirements are

filled patchily, at best, in remote coastal areas where the local authorities often lack the

capacity to enforce regulations and collect data. The fishers themselves are also often

unaware of the legal requirements of their operations. The authorities generally turn a blind

eye to the small-scale fishery operations, often on the basis of food security and the poor

economic status of many fishers, and as a result many regulations go entirely unenforced.41

This lack of data collection and submission of accurate logbook data from near shore small-

scale fisheries has led to a very data poor situation for most coral reef and demersal fish

species both at national and local levels.

In addition, there is a traditional form of near shore management in many parts of Indonesia

known as sasi or adat. The practice of traditional management varies greatly between

locations, but for example in Papua it gives rights to the local communities to close areas,

usually seasonally or for a period of years, to allow shellfish populations to recover, and

restricts access to loosely defined group of “local” fishers.

40 For example: Ningtias, P., I. Yulianto, A. Soemodinoto, S. Campbell, T. Kartawijaya, Y. Herdiana, I.D.G. Warmadewa, K.M. Hasbi and H.

Murtawan. 2013. The Management Effectiveness of Aquatic, Coastal, and Small Island Conservation Areas (E‐KKP3K). Wildlife Conservation

Society. Bogor, Indonesia. p. 19 41 S Tolvanen personal observations based on interviews in Bitung, Ambon and Kendari, April 2017.



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Typical small-scale fisheries supply chain

Depending on the location, the catch is either brought for household consumption directly

or landed at sites where the fish is distributed to various middlemen depending on the end

market. Those fish sold locally are usually distributed by palele, a local trader, who sells the

fish either at the local market or a designated spot in the village. Fish destined further afield

to either other domestic or export markets is aggregated usually through a network of

various traders. This is usually up to 3-4 domestic traders, and more if exports are involved.

The various traders then transport the aggregated catches of several fishers and villages to

end markets. At the aggregator level, certain traders might be specialists in certain species

or quality levels, while others are generalists who will accept any species or quality.

The relationships between fishers and traders are complex and differ based on the situation.

Sometimes the trader exerts considerable financial or other power over the fishers (debt

relationship) and the fisher always sells to the same trader. The trader usually provides ice,

cigarettes, and a cash advance for fuel to the fisher. Sometimes the fisher is independent and

sells to various traders depending on price and demand and pays for supplies himself, or

borrows money from other sources (further examples are included in the case studies).

The price of the fish is usually decided on the spot depending on the size and quality of the

fish. During high season, the prices usually fall, rising again when supply decreases. In the

absence of traders and buyers for good quality fish, such as in remote locations where

collection might be infrequent, all the fish may end up being sold at local market at low

price, and the fishers will put less effort into fishing.

Coastal villages usually have vessels that fish inshore for reef and demersal species, as well as

vessels that catch pelagic species such as skipjack tuna, yellowfin tuna, bonito and small

pelagics either close to shore or in deep water. For the purpose of limiting this study to

those fisheries most relevant to near shore MPA context and management, the tuna and small pelagic fisheries are not discussed further in this report. Ornamental fish and coral

collection are also not discussed in this report.

Reef fisheries

Coral reef fishes

Coral reef fishes (ikan kurang) are those fish that live or associate closely with coral reefs.

This is an extremely heterogeneous group of fishes that are caught by many different gear

types. The most common fishing methods are hook and line, nets (beach seine and gillnets),

and spear gun, which are often combined with the use of compressors and fish traps. The

fishing vessels are often small (<5GT) with 1-4 fishers per boat, with either motorized or

non-motorized propulsion. The fishing trips generally vary from a few hours up to a few

days and are limited by weather conditions, availability of ice to keep the fish in good

condition, and other socio-cultural constraints.

Indonesian fisheries statistics for 2015 show a total of 289,892 MT of reef fish caught

nationwide with combined value estimated at over USD 500 million. There are 11 main

species, and others that are reported as combined. The top five species by volume comprise

77% of the total catch.

Figure 11: Top reef fish species in Indonesia by volume and value, 2015

Reef fish Volume (MT) Value (USD)

Redbelly yellowtail fusilier / Caesio cuning 79,484 83,107,000



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Reef fish Volume (MT) Value (USD)

Blue lined seabass / Cephalopholis formosa 68,251 134,172,000

Leopard coral grouper / Plectropomus leopardus 35,819 109,580,000

Orange spotted spinefoot / Siganus guttatus 21,837 29,942,000

Creasy rock cod / Epinephelus tauvina 18,059 47,217,000

White spotted spinefoot / Siganus canaliculatus 17,112 18,931,000

Humpback grouper / Cromileptes altivelis 11,767 24,966,000

Honeycomb grouper / Epinephelus merra 9,943 18,731,000

Barhead spinefoot / Siganus virgatus 8,981 12,869,000

Parrot fishes / Scaridae sp. 2,998 3,144,000

Napoleon/humphead wrasse / Cheilinus undulatus 1,322 9,980,000

Other reef fish species 14,319 12,507,000

Total 289,892 505,084,000 Source: MMAF

The highest value fish caught in coral reefs are groupers; especially blue lined seabass,

leopard grouper, rock cod, and humphead wrasse, which can fetch high prices if the fish is of

good quality and size. The seven species of groupers specified above account for 69% of the

total reef fish value nationwide. Some species of groupers (humpback grouper, barramundi

cod and napoleon wrasse) are caught alive and kept in pens until they are suitable market

size. They are then transported live to the East Asian markets where they can command a

very high price. The total exports of live groupers out of Indonesia in 2016 were over 7,000

MTs valued at USD 50 million.42 These live fish can fetch prices 4-8x higher than the same

fish on ice.43 The practice is highly unsustainable, however, as it removes juvenile fish from

the reefs and often leads into the unsustainable use of trash fish as feed for fattening the

target species. Other species, such as yellowtail fusiliers, are important for local

consumption.

Octopuses and cuttlefishes

Numerous species of cephalopod are caught on and around coral reefs and other suitable

habitats in the coastal zone. Octopuses live in or close to the seabed and get caught by

baited traps, handlines and artificial lures made from wood and aluminum, or sometimes

they are also caught by spear gun. Similarly, cuttlefish usually live close to the seabed and

are caught by baited traps or by demersal fishing techniques. Most cephalopods caught by

small-scale fishers are consumed locally, although octopus is also an important export

commodity for Indonesia.

Figure 12: Total cephalopod catch in Indonesia by volume and value, excluding squid, 2015

Species Volume (MT) Value (USD)

Octopuses/ Octopoda sp. 9,234 14,416,000

Cuttle fishes/ Sepiida sp. 23,123 27,394,000

Total 32,357 41,810,000 Source: MMAF

Other invertebrates

42 Source: ITC.com 43 L. Pet Soede & M Erdman. How fresh is too Fresh? Live fish trade from Eastern Indonesia.



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A very large number of invertebrates, crustaceans and mollusks are caught in Indonesia.

Figure 13 below shows the volumes and values of some of the invertebrates most likely to

be caught by small-scale coastal fishers (mangrove crabs are discussed later). The fishing

methods for invertebrates include various types of baited traps and pots, to nets and

collection by hand. Sea cucumbers are usually collected from the wild, dried and sent for

lucrative export markets. Other species are a mix of local consumption and exports, with

banana shrimp being the top species by volume and value.

Figure 13: Volume and value of key coral reef invertebrates caught by small-scale fisheries in Indonesia, 2015


Sea cucumber / Holothuroidea sp. 3,918 13,255,000

Endeavour prawn / Metapenaeus sp. 35,905 110,595,000

Banana shrimp / Fenneropenaeus merguiensis 101,242 317,351,000

Tiger shrimp / Penaeus monodon 24,250 39,165,620

King prawn / Penaeus sp. 2,950 10,049,000

Jumbo prawn / Penaeus sp. 33,668 111,053,000

Spiny lobster / Palinuridae sp. 5,014 19,922,000

Swimming crab / Portunidae sp. 88,455 179,831,000 Source: MMAF

Demersal fisheries

Demersal fishes caught in Indonesia cover a very large group of fishes that live and feed in

or near the sea bottom. Many of the species are also caught in association with coral reefs,

including barracudas, snappers, rays and trevallies. The Indonesian statistics for demersal fish

also includes some fish that are mainly pelagic, such as manta rays. The Indonesian catch

statistics for 2015 list 48 different demersal species (plus others) with a total annual

production of 1,534,404 MT and a value of over USD 2 billion. The top 15 species by

volume make up 70% of the total demersal catches by volume. The top five species by

volume: red snapper, threadfins, barramundi, croakers and moonfish, make up 33.5% of the

total. The top five species by value: red snappers, barramundi, threadfins and silver and black

pomfret fishes, make up 38% of the total demersal catch value.

Figure 14: Top 15 demersal fish species in Indonesia by volume and value, 2015


Red snappers / Lutjanus sp. 125,792 277,896,000

Threadfins / Polynemidae sp. 116,152 110,329,000

Barramundi / Lates calcarifer 94,787 168,465,000

Croakers / Sciaenidae sp. 91,117 81,732,500

Moonfish / Monodactylidae sp. 86,238 n/a

Blue and gold fusilier / Caesio caerulaurea 79,815 9,861,500

Four finger threadfin / Eleutheronema tetradactylum 74,353 15,410,000

Ornate threadfin bream / Nemipteridae sp. 60,628 86,894,523

Jack trevallies / Caranx ignobilis 69,188 19,801,000

Hairtails / Trichiuridae sp. 61,264 9,245,553

Black pomfret / Parastromateus niger 53,454 108,947,000

Silver pomfret / Pampus argenteus 44,125 112,473,000



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Purple spotted big eye / Priacanthidae sp 42,921 36,646,000

Yellow-stripe goatfish / Mulloidichthys flavolineatus 37,902 39,294,000

Stingrays / Myliobatoidei sp. 37,789 20,712,000

Others 458,881 n/a

Total 1,534,404 2,026,932,500 Source: MMAF

Small-scale fishers use many gear types to catch demersal species, including hand and drop

lines, gill nets, longlines, traps, and spear guns (in shallow water). Other gear types used to

target pelagic fish, such as ring nets and purse seines, may occasionally catch some demersal

fish.

The small-scale coastal fisheries for shallow water demersal fish are often quite different

from deep-water fisheries and are discussed in more detail below.

Shallow demersal species

The demersal species that inhabit shallow waters are associated with coastal habitats such as

coral reefs (snapper, fusiliers), sea grass beds, mangroves and estuaries (croakers,

threadfins). The fishery is often quite similar, or the same, as coral reef fisheries and uses

small boats, mainly <5GT. Shallow water demersal species contribute significantly to the

food security of coastal communities and a wide variety of species is sold and consumed

locally, the proportion of which depends on the local population and competition from

traders either selling further afield or for export. There is usually some seasonal variation in

the catch rates of demersal fish dictated by their movements with seasons, as well as the weather conditions that allow fishermen in small vessels to access the fishing ground.

Typically, the shallow water fishers conduct only short trips and carry little or no ice, which

can impact the quality of the fish. The use of destructive techniques, such as spear fishing

and cyanide, are widespread in some areas, further reducing the market value of the fish and

sometimes resulting in local consumption of the product.

Case studies of a mixed coastal demersal, coral reef and pelagic fishery from Kaimana, West

Papua and a deep-water snapper fishery from Karimunjawa, Java Sea are in Appendix D and

E. The case studies highlight examples of value addition, fishery improvements and

investments for small-scale fisheries that can also be considered within the SEA project.

Sharks and rays

Despite their mainly endangered or vulnerable status, many sharks and rays play an

important part in small-scale coastal fisheries in Indonesia. In 2015, the estimated volume of

sharks and rays harvested was over 100,000 tons with value of nearly USD 300 million. It is

unclear from MMAF’s methodology whether this value includes the shark fin trade.

A wide variety of these species are caught in costal fisheries, and many if not most are

caught when targeting other coral reef, pelagic or demersal fishes and kept on board for

extra income. Some fishers also directly target these species for their high value body parts

such as shark fins and mobula ray gill rakers, which are then dried and sold for the lucrative

Chinese market. As most of these fisheries are data poor it is not easy to estimate what

proportion might be sustainable. In coastal areas that could attract tourism, these fisheries

may ultimately be detrimental as they lower the value of the ecosystem services they could

provide.

Figure 15: Key shark and ray species caught in Indonesia by small-scale fishers, 2015

http://www.fishbase.org/summary/5983



January 2018

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Species Volume (tons) Value (USD)

Stingrays / Myliobatoidei sp. 37,789 206,558,000

Eagle rays / Myliobatidae sp. 988 8,104,100

Guitarfishes / Rhinobatidae sp. 3,540 1,161,000

Wedge fishes/ Rhynchobatus sp. 4,121 2,668,000

Devil / manta rays / Mobula & Manta sp. 25,820 4,914,500

Other rays 158 37,693,000

Dogfish sharks / Squalidae sp. 4,048 6,639,000

Requiem sharks / Carcharhinidae sp. 17,551 12,041,500

Hammerhead sharks / Sphyrnidae sp. 894 1,470,000

Thresher sharks / Alopiidae sp. 2,019 2,293,000

Sawfishes / Pristidae sp. 395 258,000

Other sharks 3,967 3,469,000

Total 101,290 287,269,100

Source: MMAF

Mangrove fisheries

Mangroves can provide a fishery habitat for various species depending on the type, size and

salinity of the mangrove. Adjacent to reef areas, many reef fish species use the mangrove as

a breeding and nursery area, and reef as well as demersal species can be caught in the

mangrove during these life stages. In estuarine and riverine areas, the species caught differ

and include species such as croakers, hairtails and eels that can be caught mainly using nets

and traps.

A common mangrove-based fishery in Indonesia is the Indonesian mud crab (Scylla serrata),

or kepiting. The national catch was estimated at 38,032 tons in 2015 with a value of over

USD 112 million.44 This is a low technology, small-scale fishery that takes place in mangrove and coastal areas that provide habitat for the crab. The highest value (large) individuals can

be sold for export, while smaller crabs are sold domestically or locally. The mangrove

fisheries are low impact and if harvested at sustainable levels and where export networks

exist, they can provide good income to local communities. Capacity building with the

handling and packaging on crabs is often needed as the crabs are transported live and if they

escape can cannibalize each other.

A case study of a crab mangrove fishery in Kaimana Papua is in Appendix F.

Export markets versus local consumption

Indonesian total seafood exports were worth over USD 3 billion annually as of 2011. The

national government has an aggressive target of increasing this to USD 9.5 billion by 2019 –

driven in part by planned growth in aquaculture production and partly through increased

value addition through processing and improved cold storage in the country.45 The largest

export commodities in 2014 were shrimp, tuna, crabs and cephalopods (see figure 18

below).

44 MMAF (2015). Capture fisheries statistics by province. 45 https://www.packard.org/wp-content/uploads/2016/09/Indonesia-Fisheries-2015-Review.pdf



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Figure 16: Indonesian key seafood export commodities and trading partners

While coral reef and coastal small-scale fisheries contribute to exports it is not possible to

accurately estimate their contribution compared to commercial fisheries. Many species of

demersal and coral reef fish and invertebrates are being exported and are all included in the

“other” column above. The top five export countries for reef and demersal species

according to this are China, Japan, USA, Malaysia and Thailand. For crabs such as mud crab

and swimming crab, USA, China and Japan are the main markets.

The exact figures for proportion of exports over total catch are not clear from the MMAF

data, as the trade data is very general, but as a whole the export numbers are only a small

fraction of total catch. According to data, even for high value export species like yellowfin

tuna, exports account for only around 20% of total catch.46 For species caught in small-scale

fisheries, the figure is likely to be much lower, only a few percent at most.

For example, just 4% of the Indonesian snapper catch was exported in 2015. Between 2012

and 2015, snapper exports increased by an average of 5 percent annually and were flat as a

percentage of total catch at just 2.5 percent. Snapper export tonnage doubled to 6,000 tons

in 2016, though MMAF was not yet able to supply total production figures for that year.

Vietnam is the largest importer of snapper from Indonesia – most likely for re-export to

China – and accounted for 38% of 2016 imports, or 2,300 tons. Vietnam represented nearly

half of the increase in snapper exports between 2015 and 2016. China is the second largest

importer of Indonesian snapper, accounting for 16% of 2016 imports and representing

another quarter of the increase in snapper exports between 2015 and 2016. Malaysia is the

next largest market for snapper as of 2016, representing 12% of both exports and demand

growth for Indonesian snapper between 2015 and 2016. The United States is the fourth-largest market having imported 480 tons in 2016, or 8% of total exports. US imports have

been nearly flat since 2012.47

As well as providing livelihoods to coastal communities, small-scale fisheries are an

important source of food security. Annual seafood consumption in Indonesia is roughly 32

47 Source: ITC trade data.



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kg per capita, nearly double the global average of 19 kg per capita. In certain remote island

in Indonesia, seafood contributes up to 90% of the protein requirements for local

populations.48 There are no accurate statistics to demonstrate the role of coral reef and

demersal fisheries in food security, but it is likely to be very significant as an all year-round

source of food as many pelagic species are often more seasonal in distribution.

Conclusions and recommendations

Due to the very large number of fish and invertebrate species caught in near shore coral

reef and demersal fisheries, the generally poor data collection and the lack of accurate local

stock assessments, the near shore fisheries are vulnerable to overfishing. This is especially

true for higher value commodities such as snapper, grouper, sea cucumbers, lobsters and

others that are vulnerable to overexploitation due to their biological characteristics.

Similarly, rays and sharks are a very unlikely target for sustainable coastal fisheries and value

addition given their unknown stock status, slow reproductive rates, and vulnerability to

being caught. In general, the more remote eastern Indonesian waters are less exploited than

central and western parts of Indonesia where overpopulation has driven near shore fisheries to overexploitation for quite some time.

The Indonesian government has in recent years prioritized the role of small-scale fisheries in

its fisheries policy and has taken drastic steps to reduce the impact of commercial, and

especially foreign and IUU fishers on coastal communities. This has led to increases in the

catch of some species, especially tunas, by small-scale fishers. The national government also

has ambitious goals to assist small-scale fisheries catch value by investing in ice and cold

storage facilities and infrastructure in remote areas. Recent studies have indicated that 30%

of Indonesian seafood value is currently lost due to poor cold chain facilities.49

Given the underlying ambitions to increase export value of Indonesian fish catch and to

prioritize the role of small-scale fisheries there is a good opportunity to look at local level

strategies to increase the value of small-scale coastal fisheries in ways that also support

species and ecosystem conservation.

As discussed in the case studies, small-scale fisheries are often restricted by their remote

location and infrequent collection/access to market and the lack of ice and cold chain

infrastructure. Complicated supply chains and the presence of many middlemen often

adversely impacts the pricing the fishermen receive. Fishers also often lack the know-how to

operate within legal means by registering their boats, or use illegal and destructive fishing

techniques and lack skills to ensure good quality of their fish. Due to the multiple issues

present, and circumstances often unique to each location, comprehensive strategies must be

location specific.

In places where necessary cold chain investments are being made either by government or

by the private sector, further engagement might be needed to bolster the private sector’s

role in data collection and in enforcing rules such as no take areas, minimum landing sizes,

releasing sharks/rays and no use of bombs/cyanide. In other places, strategic investments

into infrastructure and collection facilities can also help uplift the value of the fishery and act

as incentive for fishers to follow management rules. These could even be incorporated into

the investment conditions, provided the investee has some form of control over the fishers.

Market-facing incentives could also be introduced for small-scale fisheries where suitable

conditions exist. Species sold for the US market for example could qualify for a Fair-Trade

48 https://www.packard.org/wp-content/uploads/2016/09/Indonesia-Fisheries-2015-Review.pdf 49 http://www.fao.org/docrep/019/i3640e/i3640e.pdf



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scheme and obtain a certification that can help bring increased benefits to the fishers as well

as provide transparency to fishing operations and incentives to follow rules already in place.

Other direct buyers willing to provide a premium for fish caught within a sustainable

management scenario (e.g. a FIP) can also be sought. One such initiative is currently under

way in Bali/Jakarta to develop a sustainable seafood hotel/restaurant sourcing group.

Other schemes, such as tying increased financial benefits to Kartu Nelayan fisher

registration or other government subsidy programs, could help with increased transparency

and fisher data collection and act as an incentive to following MPA rules.

In addition, territorial user rights in fisheries (TURF) arrangements have traditionally led to

increased community-based observance of fishery rules, if established under proper

consultative process and obtaining full community agreement. These arrangements within an

MPA, together with the strengthening of the community-based fisheries monitoring

programs such as POKMASWAS, can also help lead to healthier fisheries and provide

incentives for following MPA rules.

5. Overview of the fisheries sector in Morotai

The assessment team interviewed a top official at the district fisheries authority, or DKP, as

well as several fishermen in different villages across Morotai. The data gathered sheds light

on the qualitative aspects of the local fisheries. Quantitative data received were limited and

largely anecdotal, and it appears that data collection efforts were improving while the

assessment team was visiting.

Fisher data

According to Morotai DKP, there are a total of 4,019 fishers across Morotai operating a

total of 2,113 vessels. Approximately half of these fishers and vessels operate out of south

and southwest Morotai, the site of the proposed MPA. According to DKP, these figures

were gathered using door-to-door surveys (see figure 19 for the breakdown of fishers according to DKP).

Figure 17: Morotai registered fishers’ statistics, July 2017

Area Number Fishers'

ID Card

Fishers’

Insurance

Without

vessel

South Morotai 1,230 746 304 61

East Morotai 665 329 141 40

North Morotai 682 425 146 53

Southwest Morotai 960 613 171 42

Morotai Jaya 482 223 149 17

Total 4,019 2,336 911 213 Source: DKP

Of those fishers identified, approximately 60% have a state-issued ID card that officially

registers them as fishers and would allow them to receive government benefits, including insurance. Of those that have the ID card, however, less than half are enrolled in the

government insurance program. These current figures are the result of a recent drive in

Morotai to register and link fishermen with government support schemes. DKP indicated

they would continue their enrollment initiatives.

It should be noted that the figures from DKP differed significantly from the fisher data

collected by WCS as part of their village surveys. The WCS fishing survey data is not



January 2018

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further considered as part of this study however as the data analysis found a large over-

estimation of the catches and data requires further checking before it is suitable for the use

in the model.

It is unknown how many of these fishers derive the majority of their income from fishing. In

the interviews conducted by the assessment team, fishermen anecdotally indicated they fish

6-7 times per week, weather permitting.

Figure 18: Morotai registered vessel statistics, July 2017

Area Non-

motorized 1-3 GT 5-7 GT 10-20 GT >20 GT

South Morotai 223 320 5 5 0

East Morotai 154 196 2 1 0

North Morotai 168 205 3 0 0

Southwest Morotai 193 282 23 7 1

Morotai Jaya 139 185 0 1 0

Total 877 1,188 33 14 1 Source: DKP

As illustrated in figure 20 above, the vast majority of registered fishing vessels active in

Morotai are artisanal scale, under 3 GT. This is consistent with the assessment team’s

observations on the water. Nearly half of registered vessels are non-motorized, illustrating

the low-income levels of these fishermen.

According to data provided by DKP, half of fishers in southwest Morotai, which are within

the proposed the MPA zone, target demersal species using handline. The other half target

pelagics – approximately one-third target skipjack and tonggol with handline and pole and

line, while the remainder target halfbeaks/flying fish (9%) and scad (5%) with ring nets, and

anchovies (2%) with floating charts, or bagan.

In all other parts of Morotai, the gear types and target species were similar, but in varying

proportions. In South Morotai, the mix of catch and gear type was very similar to the

Southeast region, while in North Morotai the proportion of demersal catch was just 25%. In

east Morotai the catch was exclusively pelagic species using handline and kite fishing.

The assessment team witnessed the use of Fish Aggregation Devices (FADs) and mini purse

seine vessels in the northern part of the proposed MPA zone, near Rao Island. It is

uncertain whether this gear type was identified as ring nets in the data provided by DKP.



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Fisherman profile #1: Pak Bano, a fisherman in Daruba

The assessment team interviewed Pak Bano, a fisherman who lives on the water’s edge next to the

fish landing site in the center of Daruba. He estimated there are 15 vessels and 20 fishers in the

immediate area. He uses handline as a gear type, using shrimp he gathers himself as bait. He mostly

stays in the areas around Daruba and the adjacent islands (especially Zum Zum Island), though he

does travel to the waters adjacent to Rao if the catch there is expected to be better.

Fusiliers (dolosi), giant trevally (bobara), and grouper (kerapu) are the most common fish he catches.

The night before we spoke with him he caught a total of 40 fish, though he estimates his average

catch is around 120 fish. He and his family consume around 10 fish every day. He says he is paid

IDR 10,000 per fish, which implies daily revenue of approximately IDR 1,100,000, or USD 80. The

revenue from his previous day’s catch was a more modest IDR 300,000, or USD 22.

As for expenses, he estimates his average fuel usage is between 1 and 5 liters, with a maximum of

10 liters if traveling to the Rao Island fishery. The price per liter of fuel is IDR 10,000 in Morotai. As

for ice, he takes out 10 to 15 blocks of ice for each trip, each costing IDR 10,000. Based on the

catch figure of 120 fish caught and 10 consumed, he earns around USD 70 per day after expenses.

Based on the previous night’s catch rather than his (probably high) average estimate, he earns USD

7 to 14 per day.

Figure 19: Estimated daily income of a demersal fisherman in Daruba

Income/expense

scenario

High

expense

Low

expense

High

expense

Low

expense

Catch (number of fish) 120 120 40 40

Consumed fish 10 10 10 10

Fish sold 110 110 30 30

Price per fish (IDR) 10,000 10,000 10,000 10,000

Total revenue 1,100,000 1,100,000 300,000 300,000

Fuel usage (liters) 5 1 5 1

Price per liter (IDR) 10,000 10,000 10,000 10,000

Total fuel expense 50,000 10,000 50,000 10,000

Ice usage (blocks) 15 10 15 10

Price per block (IDR) 10,000 10,000 10,000 10,000

Total ice expense 150,000 100,000 150,000 100,000

Net income (IDR) 900,000 990,000 100,000 190,000

Net income (USD) 67 73 7 14

He fishes 6 or 7 days per week, weather permitting, and says his least productive months

are June and July due to the rough waters. He and his wife mostly sell the fish at the local

wet market, or sometimes via middlemen. When asked about how common bomb and

cyanide fishing are, he said they are not at all common as penalties include fines of IDR 50

million (USD 3,700) and up to 10 years in jail. He also indicated the last time he saw a DKP

enumerator was 6 months prior to our conversation. Finally, he said he has been fishing for

4 years and his catch per unit effort has not increased or decreased.

Source: interview directly with fisher, July 2017.



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Catch data

Available catch data for the last five years is presented in figure 20 below. However, this

data should be considered indicative only. Based on interviews with fishers in Morotai, DKP

enumerators visit the catch landing sites every 3-6 months. Catch figures for 2016 were not

yet available as of the team’s visit in July 2017.

Figure 20: Morotai catch statistics, July 2017 (tons)

Fish type 2011 2012 2013 2014 2015

Yellowfin Tuna / Thunnus

albacares 843 927 2,782 2,865 3,009

Skipjack / Katsuwonus pelamis 1,027 1,078 3,235 3,332 3,499

Other Large Pelagic 662 695 1,446 1,460 1,533

Longtail tuna / Thunnus tonggol 974 1,023 2,045 2,066 2,169

Bait fish 734 771 1,202 1,262 1,326

Scad / Carangidae sp. 1,336 1,470 5,144 5,298 5,828

Halfbeaks - Flying fish /

Hemiramphidae 382 401 1,023 1,033 1,043

Anchovy / Engraulidae sp. 573 602 1,203 1,239 1,252

Fusilier / Caesionidae sp. 172 181 199 203 205

Other Small Pelagic 1,081 1,135 2,838 2,866 2,895

Demersal fish 1,447 1,519 3,818 3,890 3,929

Mud crab / Scylla serrata 1 1 1 1 1

Shrimps 195 205 164 165 149

Sea cucumber / Holothuroidea sp. 114 120 96 97 98

Shellfish 0.5 1 1 1 1

Molluscs 4 4 5 4 4

Total 9,545 10,133 25,202 25,782 26,941

Source: DKP

Based on the available data, catch (and presumably catch effort) has increased significantly

since 2012. Island-wide, pelagic species are most commonly targeted, with demersal fish and

reef animals accounting for 16% of total reported catch.

DKP Morotai indicated the national government/KKP has set targets for Morotai equivalent

to 5% of total production in FMAs 716 and 717, or 61,000 tons. If current catch figures are

accurate, these targets are more than double 2015 production – including the doubling the

take of demersal and reef species.

Figure 21: Morotai catch targets

Type Tonnag

e

Large pelagics 14,089

Small Pelagics 38,210

Demersal fish 6,935

Other 1,934

Total 61,168

Source: DKP



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Fisherman profile #2: tuna fisherman in Daeo

The assessment team interviewed a tuna fisherman on the east coast of Morotai as he was

unloading his yellowfin catch at the local landing site. He estimates his daily catch is 70-100 kg on

average. The pricing per fish is based on size: IDR 19,000 per kg if under 20 kg, IDR 28,000 per kg

if between 20 and 30 kg, and IDR 30,000 per kg if above 30 kg. This implies a daily revenue of

between IDR 13.3 million and 30 million, or USD 100 to 220.

Expenses include fuel usage of 100 liters per day, as he travels at least 15 nm offshore and often as

far as 30nm – these pelagic fishermen use handline and work two people per vessel. Ice expense

includes 1.5 blocks of ice at IDR 35,000 per block. Assuming these expenses, he and his fishing

partner each earn USD 10 to 70 per trip on average. He indicated they fish every day the weather

allows it, that November to January is peak season and they catch up to 16 fish per day during

that time. March and April they can take up to 100 kg per day, while in July and August the waters

are usually too rough for fishing.

He indicated there are approximately 300 fishermen in Daeo, and that DKP enumerators usually

visit the landing site once every 3 to 6 months.

Source: interview directly with fisher, July 2017.

Infrastructure in place

When fish are landed, they are reportedly sold at the wet market or to a middleman. DKP

indicated that collection vessels from Bitung are the primary route for fish leaving Morotai.

DKP estimates that 70-80% of catch is sold to these vessels, but this appears to be

anecdotal and should be considered indicative only. Two companies own and operate the

collection vessels: PT Betani and PT Nutrindo. DKP estimates catch figures based on these

cargo shipments leaving Morotai.

There is no processing currently done in Morotai. In Daruba, there is an abandoned

processing plant that was reportedly operational as recently as 2014. However, it was

operating illegally apparently and shut down by the authorities. East of Daruba, another 50-

ton processing plant and cold storage facility was constructed by the national government in

2015. A private company, PT KME Surabaya, reportedly operated this tuna loining plant for

less than two years, exporting yellowfin to Java and Japan via Manado, before ceasing

operations in early 2017.

It is not entirely clear why the plant went out of business – it was reported that the

operator faced capital constraints and was unable to pay for raw materials from the 4

fishers’ cooperatives it had MOUs with. The assessment team toured the plant site and it

still appears to be in very good condition, perhaps never used. DKP indicated the operations

of the facilities are open to public tender and 4-6 companies have expressed interest,

though none had agreed to operate the facility as of the team’s visit.

Adjacent to the tuna loining plant is an operational ice factory, apparently the only such

facility in Morotai. An on-site generator powered this facility, as grid electricity is unreliable.

DKP asserted that a new 200-ton processing plant for multiple species would be

constructed in the near term, but the viability of such an operation is unclear given the

circumstances.

Also in Daruba, near the closed processing plant, a new wet market was built in early 2017

but as of the team’s visit in July it was not yet operational.



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50

Opportunities for the fisheries sector

There are several opportunities to strengthen the fisheries sector in Morotai, to ensure that

additional value remains in the island, generate additional employment in the fisheries

sector, and support the establishment of the MPA in Morotai. Some of the opportunities

that were identified during the rapid assessment are outlined below.

1. Invigorate existing installed fish processing and ice infrastructure. The fish

processing facility financed by the national government has the cold storage and fish

processing capacity, as well as an ice plant. As noted, the local government has been

collaborating with the national government to select a suitable operator and

determine an arrangement that would be attractive to a private operator. A major

opportunity to increase value to the island is to have this facility operational and

increase the value on the hands of local fishers.

2. More and higher value pelagic fish are caught mostly outside of the MPA.

This provides an opportunity for fishers who currently target the MPA to possibly

divert some of their catch effort elsewhere should fishing restrictions such as no-

take areas be put in place. The development of more sustainable tuna fishing

techniques such as pole and line and hand line could be potentially supported by the

industry in Bitung, where there is a high market demand for these products.

3. No value-added services currently provided for reef and demersal

fisheries. As noted in previous sections, the reef and demersal fish species are sold

to a wet market, a middleman, or kept for home consumption. There is an

opportunity to explore value-added strategies to increase the quality and value of

fish and support local fishers within the proposed MPA not to increase their effort

or incur economic losses.

Challenges and constraints in the fisheries sector in Morotai

The fisheries sector in Morotai faces some challenges and constraints to its growth. One

particular challenge that can directly impact the MPA development is the reliability of

current available data. The other challenges and constraints identified during the assessment

are summarized below.

Unreliable data. Data-poor environment in which enumerators collect catch data

only a few times per year, no stock assessments have been performed, and catch

data is apparently estimated based on bills of lading for cargo vessels. As such,

current data is indicative at best.

Lack of public infrastructure hinders the growth of the value-added services for the sector. Lack of public infrastructure, especially reliable electricity,

limits the prospects for onshore processing in Morotai.

Lack of enforcement of fishery regulations. There are reportedly zero vessels

on patrol in Morotai enforcing fisheries law. This can be a major threat to the MPA

zones and to ensure there are no unsustainable fishing practices.

Lack of understanding regarding sustainability. Bombs and cyanide were reportedly common in previous years, and it is unclear to what extent they are still

used. There is a sense that as long as these techniques are avoided, there is no

problem with the fishery. During the assessment team’s search for dugongs, a fisher



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51

in the area near where dugongs are typically sighted said that he had killed one two

days before, apparently unaware this was illegal.

Action Plan to support the fisheries sector in Morotai

There are some key actions that the SEA Project can support that will support the fisheries

sector in Morotai, strengthening fisheries management, as well as promoting the benefits of

the MPA. A proposed action plan for the SEA Project’s consideration is outlined below.50

1. Engage private sector. Once an operator is identified for the fish processing and

cold storage facility, it will be essential for the SEA Project and Partners to engage

with the private sector to ensure that good purchasing standards and support for

the MPA are part of their operational principles. Incentives such as market strategies

could be also put into place (as highlighted in the Indonesia fisheries overview) to

incentivize the private sector collaboration. One potential market incentive can be

promoting the Fair Trade Certification scheme in place in other SEA Project sites.

2. Improve data collection capacity to support the MPA. As DKP data is inconclusive, it is assumed based on data collected by WCS within the MPA that

fishing pressure in the MPA is already relatively high and fishing without restrictions

will erode the economic basis of both the fishing and tourism sectors over time. As a

next step, further research should be conducted to see the spatial distribution of the

fishing effort within the proposed area of the MPA, its relationship to the high

biodiversity and high biomass areas, and, in consultation with the DKP and affected

communities, begin planning possible zoning plans that most benefit the SEA project

objectives and government ambitions. In order for these areas to successfully

contribute to the MPA objectives they also need to have limited impacts on the

community livelihoods and income.

3. Include value added strategies for reef and demersal fisheries to benefit

fishers within the MPA. The value-added strategies described in the reef and

demersal fisheries overview section and case studies in this report could be

considered by the SEA project and partners in order to increase the quality and

value of the local fish and possibly help the fishers transition and adapt to supporting

no-take areas within the proposed MPA.

4. Promote sustainable fishing practices through education campaigns to

key stakeholders. As noted, there are some unsustainable practices that could

impact the MPA that can be addressed through an education campaign at different

levels. For example, educating local fishermen about current laws related to dugongs,

can be an effective strategy to ensure there are dugongs for tourists to enjoy when

they visit the MPA. Providing sustainability guidelines to private sector processing

operators can promote fishing of mature fish and curb the incidence of fishing

juvenile fish. Furthermore, supporting the local government with knowledge about

benefits of the MPA and promoting sustainable fishing practices can strengthen the

partnership between the SEA Project and local government, creating local champions

for sustainability in the island.

50 Marine Change will visit Morotai in March 2018 to meet with local government and sharpen the ERR model, highlighting the

economic benefits around supporting an MPA (i.e. tourism, diving etc.) compared to current business as usual. Following this

visit, we propose to hold a meeting with all relevant stakeholders in the SEA project to discuss future work plans and prioritize

activities.



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52

6. Economic modeling

Marine Change is in the processes of developing an economic model for the SEA Project

that considers the localized gross domestic product (GDP) generated by key economic

activities that impact the MPA such as tourism, fisheries and agriculture. The model can

accommodate different scenarios that can be used for comparison and decision-making. Figure 22 below provides a summary of the key questions the model attempts to answer

and how different stakeholders can use the information obtained from the model.

Figure 22: Summary of the economic model’s purpose

Marine Change is also developing a “grid valuation analysis” model in which the potential

value of each area of the proposed MPA area in Morotai will be analyzed under multiple

scenarios. This analysis will utilize geographic information system (GIS) mapping that shows

the coral reef, mangrove, and sea grass habitat coverage areas in the proposed MPA and

estimate the value of each area.

A basic example of this analysis was performed on three areas within the proposed MPA

adjacent to Morotai. The sample areas were selected based on their high coral coverage and

high current/potential popularity with tourists. The scenario analyses were performed for

Mitita Island (where many shark dives currently take place), Dodola Island (perhaps

Morotai’s most popular tourism destination), and a small island adjacent to Rao Island (for

its potential development as a tourism/diving destination).

Site characteristics:

Mitita Island:

Total grid area of 4 km2, reef cover of 45.11 hectares

Dive sites: Shark Point, Niomi, Sam Point

Location: 20-30 minutes from Daruba

Dodola Island:


Dive sites: D’Aloha Point


A. HoweconomicactivitiescanhelpfinancetheannualcostsofmanagingtheMPAB. Howeconomicactivitiescanimpactlocalcommunitieswholiveinareas

surrounding/withintheMPAC. TheeconomicimpactsoftheMPAzoning(financialimpactstocommunitieswho

deriveincomefromtheMPA)D. Howinvestments(physical,capital,humanresource)willimpact“ecosystem

services”inagivenMPA/physicalgeographicalarea

Themodeltriestoanswerthefollowingquestions

Themodelcanbeusedbydifferentstakeholdersfordifferentpurposes

• ThemodelcanbeusedbydifferentstakeholderswithintheSEAproject(SEA-Corestaff,NGOpartners,DKP,Dinas Wisata)tounderstandtheimpactandtradeoffsofdifferentinvestmentopportunities

• ServeasaguidetodetermineapprovalofinvestmentsintheareaofinfluenceoftheMPA,throughtheuseoftheEconomicRateofReturn(ERR)valuation

• SupportthejustificationofzoningplansfortheMPAs• IdentifyfundinggapsinMPAoperationalbudgets

Summaryofthepurposeofthemodel:economicrepresentationofUSAIDSEAProject’secosystem-basedapproachtomanagement(EBM)andfocusonenhancingfisheriesproductivity,foodandnutritionsecurity,andsustainablelivelihoodsthroughpromotingmarineprotectedareas(MPA)



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Small island adjacent to Rao Island:


Dive sites: Saminyamau, Saminyamau Utara

Location: 1 hour from Daruba

Figure 23: GIS grid map of proposed MPA site (in orange, left) and sample areas (right) – coral coverage in pink

In this grid analysis, four scenarios were considered for each sample area, juxtaposing the

potential value of coral reefs from tourism with the potential value from fishing.

Scenario 1: assumes no change in current catch effort and assumes a baseline growth in

tourism/diving with no change in biomass.

Scenario 2: assumes an increase in catch effort over time (2 percent per year), resulting in

increased fishing revenues, decreased fish stocks and decreased tourism revenues relative to

baseline.



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Scenario 3: assumes a decrease in catch effort over time (5 percent per year), resulting in

decreased fishing revenues, increased fish stocks and increased tourism revenues relative to

baseline.

Scenario 4: assumes a no-take area established on the sample reef, resulting in zero fishing

revenues and a spike in biomass and tourism revenues relative to baseline.

Baseline assumptions:

Fisheries:

1. Fish biomass production of 10 tons per year per km2 of coral reef cover

2. Assuming 20% MSY implies baseline fish biomass of 50 tons per km2

3. Value of IDR 15,000 per kg for all species

Tourism:

1. Baseline annual visitors of 4,000

2. Annual growth in visitors of 10%, resulting in 15,190 guests in year 15

3. Baseline annual divers: 540, based on survey data from dive centers (average stay

of 3-4 days, with 2-3 dives per day = 6-12 total dives per visitor)

4. IDR 500,000 paid per dive; expenditures on hotels and meals, etc. are not included

5. Mitita Island and Dodola Island: one dive per dive visitor, i.e. 540 dives in year 1

6. Rao Island: one dive per every second dive visitor, i.e. 270 dives in year 1

Key results from the economic model

These initial analyses illustrate the tradeoff between tourism and fisheries – the fish in the

reefs surrounding Morotai are worth much more in the water, as their protection will

attract tourists who will pay to dive or snorkel with them. If establishing a no-take area is

not politically feasible, decreasing catch effort or minimizing the use of destructive fishing

techniques can also add value. The analysis also demonstrates the dramatic loss of value that

can take place in a relatively short period of time when catch and effort is increased and fish stocks and tourism values are reduced as a result. The overall results of these initial analyses are presented in the figures on the next pages.


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Sample site 1: Mitita Island

Coral coverage: 45.1 hectares

Dive sites: Shark Point, Niomi, Sam Point


Scenario 1: Stable Catch Effort

Biomass stock: 22.6 tons, IDR 338.3m

Annual fishery production: 4.5 tons, IDR 67.7m

Dives in year 1: 540, IDR 270m

Dives in year 15: 2,051, IDR 1,025.3m

Scenario 2: Increased Catch Effort

Increase in catch effort, to 6.0 tons, IDR 89.3m

Stock depletion to 0.9 tons, IDR 13.4m in year 15

Tourism peaks in year 8: 1,052 divers, IDR 526.2m, decreasing to 615 divers, IDR 307.6m in year 15

Scenario 3: Decreased Catch Effort

Reduction in catch effort, to 2.2 tons, IDR 33.0m

Stock rebound to 30.5 tons, IDR 457.9m

Increased tourism: 2,461 divers, IDR 1,230.4m in year 15

Scenario 4: No Take Zone




January 2018

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Figure 24: Grid valuation scenario analysis for Mitita Island


January 2018

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Sample site 2: Dodola Island


Dive sites: D’Aloha Point



Biomass stock: 306.6 tons, IDR 4,599.5m


Dives in year 1: 540, IDR 270m

Dives in year 15: 2,051, IDR 1,025.3m


Increase in catch effort, to 80.9 tons, IDR 1,213.8m


Tourism peaks in year 8: 1,052 divers, IDR 526.2m, decreasing to 615 divers, IDR 307.6m in year 15



Stock rebound to 415.0 tons, IDR 6,225.1m



Stock rebound to 609.4 tons, IDR 9,140.3m



January 2018

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Figure 25: Grid valuation scenario analysis for Dodola Island


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59

Sample site 3: Small island adjacent to Rao Island


Dive sites: Saminyamau, Saminyamau Utara

Location: 1 hour from Daruba


Biomass stock: 22.4 tons, IDR 335.5m


Dives in year 1: 270, IDR 135.0m

Dives in year 15: 1,025, IDR 512.7m


Increase in catch effort, to 5.9 tons, IDR 88.5m


Tourism peaks in year 8: 526 divers, IDR 263.1m, decreasing to 308 divers, IDR 153.8m in year 15




Increased tourism: 1,230 divers, IDR 615.2m in year 15



Increased tourism: 1,538 divers, IDR 769.0m in year 15


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Figure 26: Grid valuation scenario analysis for small island adjacent to Rao Island



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These graphs show that scenario 4 (no-take) yielded the highest value at the end of year 15

for each of the three sample sites, in each instance over 50 percent higher than baseline

scenario 1, and over 60 percent higher for Dodola Island.

The analysis also shows that decreasing catch effort or minimizing the use of destructive

fishing techniques can also add value. This is demonstrated in scenario 3 for each of the

sample areas: catch effort and fishery value decreases but is not eliminated, and there are

still increases in tourism value relative to baseline. By year 15, value created in this scenario

is approximately 20 percent greater than baseline scenario 1 for each of the three sample

sites.

The analysis also emphasizes the dramatic loss of value that can take place in a relatively

short period of time when catch and effort is increased and fish stocks and tourism values

are reduced as a result. This is the result observed in scenario 2, where value at year 15 is

nearly 30 percent less than baseline scenario 1 for each of the three sample sites.

These initial analyses illustrate the tradeoff between tourism and fisheries – the fish in the

reefs surrounding Morotai are worth much more in the water, as their protection will

attract tourists who will pay to dive or snorkel with them. The initial analysis does not yet include aspects of local GDP vs. national GDP for the activities assessed. These analyses also

highlight the need for real fisheries management, as fishing pressure is likely to increase if

unchecked, destroying value in the process.

This analysis will be performed on the MPA as a whole to explain to policymakers the

disparity in value between different levels of fishing and tourism, and underscore the

benefits of protecting the areas with the highest potential tourism value. This is intended to

help them decide which areas are best designated as no-take, as restricted access, etc., and

where to focus management and enforcement efforts. For the sample areas, the large

disparity in values between the no-take scenario (#4) and business as usual (#1) suggests the

best policy is to establish no-take zones these areas.

7. Conclusion

The rapid assessment conducted in Morotai highlighted the strong potential for the creation

of an MPA that will support the island’s transformation into a model of ecotourism and

sustainable fishing practices. Given the positive transitional state of local government, the

local officials are open to new ideas and approaches, especially ones that encapsulate the

island’s motto “Rise up Morotai” – Bangit Morotai – that is in many billboards in Daruba,

the island’s main city.

Individual interviews with key stakeholders in the public and private sectors, as well as local

inhabitants of Morotai and adjacent islands helped to formulate insights into the

opportunities that can make this transformation possible. The opportunities to improve the

fisheries sector rely on the government’s ability to reignite the island’s fish processing

facilities (currently not operational) and its capacity to improve data gathering and

monitoring efforts to ensure sustainability of Morotai’s coastal fisheries. Investments that

support value-added services for reef and demersal fisheries can lead to increased local

GDP and support the MPA’s enforcement in the long-term.

In the nascent tourism sector, there is a lack of knowledge about sustainable tourism

coupled with inadequate infrastructure, hindering the ability to seize the growing

ecotourism niche. There is however, strong local government support for ecotourism and

tangible plans to improve the island’s infrastructure in support of tourism. The main



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opportunity is to use the change in government leadership and the development of new

master plans to integrate ecotourism and the value of the MPA to the island.

The initial analysis performed in the economic model illustrate that the fish in the reefs

surrounding Morotai are worth much more in the water, as their protection will attract

tourists who will pay to dive or snorkel with them. The analysis also demonstrates the

dramatic loss of value that can take place in a relatively short period of time when catch and

effort is increased and fish stocks and tourism values are reduced as a result.

These messages, coupled with capacity building and support from the SEA Project and

Partners will be key to engage public and private sectors stakeholders, as well as the island

inhabitants to promote the development of tourism and management of fisheries in support

of the long-term sustainability of the MPA.



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Annex A – Organizations interviewed

Government Agency Contact List

Name Office Contact number Position

1. Pak Arsad Sibua Perindakop (SME) Morotai 085242210116 Head of Agency

2. Allan Syani Communication and

Information agency

081354538783 Head of Agency

3. Ibu Sina Transportation Agency 081266620223 Head of Agency

4. Tony Hangewa Tourism Agency 081356480966 Head of Agency

5. Pak Muhlis Baay DKP (fisheries Agency) 081241201887 Head of Agency

6. Pak Jufri Harbour office 081298899887 Head of Agency

7. Pak Syamsudin Airport 082132549770 Head of Agency

8. Memet Transportation Agency 085254000500 staff

9. Pak Abjan Bappeda (Planning and

Development agency)

08124752803 Head of Agency

10. Pak Djunaidi Bappeda 081355710210 staff

11. Isti Airport 082271076560 Admin and data

management

12. Pak Hen Police station 081342734886 Police officer

13. Ibu Yud PDAM Morotai 082343334334 staff

Hotel, Homestay, and Dive center

Name Office Contact number Position

1. Muhammad Basri Homestay Fikri 082346514601 Owner

2. Pak Karim Hotel Perdana 082331113999 Owner

3. Ikrap Pawane Penginapan Dodola 081244998623 Owner

4. Sinta Dewi Astriani Penginapan Sintayu 085397248161 Owner

5. Suriaty Hotel Antrimel 082194266899 Owner

6. Pak Yunizar D’aloha Resort 081282896292 Owner

7. Lutfi Abdullah Marina Putri 082195513129 Owner

8. Gita Qalbi Tjan Morotai Inn 082248084505 Owner

9. Pak Ali Hotel Permai 082193190342 Owner

10. Pak Rustam Hotel Ria Mba Erni

(receptionist),

0813402106580

Cleaning service

11. Pak Zet Pacific Inn 085256661042 Owner

12. Fandy Noval Dive Morotai 08229120113 Dive Guide


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Annex B – Morotai Flight Information51

Month/ year Flight numbers Route Flight

arrivals

Flight

departures

Passenger

arrivals

Passenger

departures

Arrival

Occupancy

Departure

Occupancy

Total flight

capacity

Jun-17 1171-1172 Ternate-Morotai 30 30 1,779 1,834 82% 85% 2,160

May-17 1171-1172 Ternate-Morotai 31 31 1,898 1,847 85% 83% 2,232

Apr-17 1171-1172 Ternate-Morotai 30 30 1,914 1,867 89% 86% 2,160

Mar-17 1171-1172 Ternate-Morotai 31 31 1,989 1,895 89% 85% 2,232

Mar-17 1180-1181 Manado-Morotai 1 1 38 21 53% 29% 72

Feb-17 1171-1172 Ternate-Morotai 28 28 1,460 1,678 72% 83% 2,016

Feb-17 1180-1181 Manado-Morotai 17 17 393 348 32% 28% 1,224

Jan-17 1171-1172 Ternate-Morotai 31 31 1,570 1,582 70% 71% 2,232

Jan-17 1180-1181 Manado-Morotai 30 30 709 459 33% 21% 2,160

Dec-16 1171-1172 Ternate-Morotai 29 29 1,606 1,702 77% 82% 2,088

Dec-16 1180-1181 Manado-Morotai 26 26 614 709 33% 38% 1,872

Nov-16 1171-1172 Ternate-Morotai 30 30 1,504 1,672 70% 77% 2,160

Nov-16 1180-1181 Manado-Morotai 24 24 548 610 32% 35% 1,728

Oct-16 1171-1172 Ternate-Morotai 31 31 1,516 1,628 68% 73% 2,232

Oct-16 1180-1181 Manado-Morotai 27 27 596 608 31% 31% 1,944

Sep-16 1171-1172 Ternate-Morotai 30 30 1,804 1,873 84% 87% 2,160

Sep-16 1180-1181 Manado-Morotai 8 8 178 171 31% 30% 576

Aug-16 1171-1172 Ternate-Morotai 27 27 1,605 1,630 83% 84% 1,944

Jul-16 1171-1172 Ternate-Morotai 31 31 1,942 1,970 87% 88% 2,232

Jun-16 1171-1172 Ternate-Morotai 30 30 1,859 1,894 86% 88% 2,160

May-16 1171-1172 Ternate-Morotai 31 31 1,707 2,041 76% 91% 2,232

Apr-16 1171-1172 Ternate-Morotai 4 4 136 212 47% 74% 288

51 Morotai Airport Authority.

An Overview of Tourism and Demersal & Reef Fisheries Sectors in Indonesia and a Rapid Assessment of the Tourism &

Fisheries Sectors in Morotai Island, North Maluku

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Annex C – GSTC Criteria

Destination criteria52


1. The destination has established and is implementing a multi-year destination

strategy

2. The destination has an effective organization responsible for a coordinated

approach to sustainable tourism

3. A system exists to monitor, publicly report, and respond to environmental and

other concerns

4. The destination dedicates resources to mitigate seasonal variability of tourism

where appropriate

5. A system exists to identify risks and opportunities associated with climate change

6. The destination has an up-to-date, publicly available inventory and assessment of

its tourism assets

7. The destination has planning policies that require environmental, economic, and

social impact assessment and integrate sustainable land use

8. Sites and facilities, including those of natural and cultural importance, are

accessible to all

9. Laws regarding property acquisitions exist, are enforced, comply with communal

and indigenous rights, and ensure public consultation

10. A system exists to monitor and publicly report visitor satisfaction

11. A system exists to promote sustainability standards for businesses consistent

with the GSTC criteria

12. The destination has a system to monitor, prevent, publicly report, and respond to

crime, safety, and health hazards. 13. The destination has a crisis and emergency response plan

14. Promotion is accurate with regard to the destination and its products, services,

and sustainability claims


1. The economic contribution of tourism to the destination’s economy is monitored

and publicly reported annually

2. Tourism businesses provide equal employment, training opportunities,

occupational safety, and fair wages

3. A system exists that encourages public participation in destination planning and

decision making

4. Local communities’ aspirations, concerns, and satisfaction with destination

management are regularly monitored

5. The destination monitors and protects community access to natural and cultural

sites

52 https://www.gstcouncil.org/wp-content/uploads/2013/11/Dest-_CRITERIA_and_INDICATORS_6-9-14.pdf

Rapid Assessment of the Tourism and Fisheries Sectors in Morotai Island, North Maluku

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6. The destination teaches communities about the opportunities and challenges of

tourism, and the importance of sustainability

7. Laws exist to prevent commercial, sexual, or any other form of exploitation and

harassment

8. A system exists to enable and encourage businesses, visitors, and the public to

contribute to sustainability initiatives

9. A system exists that supports local and small- and medium-sized enterprises

C. Cultural impacts

1. A policy and system exists to evaluate, rehabilitate, and conserve natural and

cultural sites

2. A visitor management system exists that includes measures to protect and

enhance natural and cultural assets

3. Guidelines exist for proper visitor behavior at sensitive sites

4. Laws exist governing historical and archaeological artifacts

5. Accurate interpretive information is provided at natural and cultural sites

6. A system exists to contribute to the protection of intellectual property

D. Environmental impacts

1. The destination has identified environmental risks and has a system in place to

address them

2. The destination has a system to monitor the environmental impact of tourism

3. A system exists to ensure compliance with local, national, and international laws

regarding wildlife

4. A system exists to encourage enterprises to monitor, minimize, and publicly

report their greenhouse gas emissions

5. A system exists to encourage enterprises to monitor, reduce, and publicly report

energy consumption

6. A system exists to encourage enterprises to monitor, reduce, and publicly report

water usage

7. A system exists to monitor water resources to ensure that use by business is

compatible with the water requirements of the destination community

8. A system exists to monitor drinking and recreational water quality

9. Clear and enforced guidelines exist for the siting, maintenance and testing of

discharge from septic tanks and wastewater treatment systems

10. A system exists to encourage enterprises to reduce, reuse, and recycle solid

waste

11. Regulations exist to minimize light and noise pollution

12. A system exists to increase the use of low-impact transportation, including public

transportation, walking, and cycling


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Industry criteria53 54


1. A long-term sustainability management system that is suitable to the

organization’s size and scope

2. Compliance with all applicable local, national and international legislation and

regulations including health, safety, labor and environmental aspects

3. Sustainability policy, actions and performance are communicated to stakeholders

4. Staff are engaged with development and implementation of the sustainability

management system

5. Customer satisfaction, including aspects of sustainability, is monitored

6. Promotional materials are accurate and transparent with regard to the

organization’s products and services, including sustainability claims

7. Planning, siting, design, construction, renovation, operation and demolition of

buildings and infrastructure:

i. Comply with zoning requirements and laws related to protected and

sensitive areas

ii. Take account of the capacity and integrity of the natural and cultural

surroundings

iii. Use locally appropriate and sustainable practices and materials

iv. Provide access to all

8. Acquisition of land and water rights and of property is legal, and complies with

local communal and indigenous rights

9. Organization provides information about and interpretation of the natural

surroundings and local culture

10. Organization is involved with sustainable tourism planning


1. Organization actively supports initiatives for local infrastructure and social

community development

2. Local residents are given equal opportunities for employment and advancement

3. Organization gives priority to local and fair trade suppliers

4. Organization supports local entrepreneurs in the development of sustainable

products

5. Organization has a policy against commercial, sexual or any other form of

exploitation

6. Organization offers employment opportunities without discrimination

7. Labor rights are respected, a safe and secure working environment is provided

and employees are paid at least a living wage

8. Activities of the organization do not jeopardize the provision of basic services,

such as food, water, energy, healthcare or sanitation, to neighboring communities

9. Activities of the organization do not adversely affect local access to livelihoods

53 https://www.gstcouncil.org/wp-content/uploads/2015/11/GSTC-Hotel_Industry_Criteria_with_hotel_indicators_21-Dec-2016_Final.pdf 54 https://www.gstcouncil.org/wp-content/uploads/2015/11/GSTC-Tour-Operator_Industry_Criteria_with_tour_operator_indicators_21-Dec-2016_Final.pdf


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C. Cultural impacts

1. The organization follows best practice and locally agreed guidance for the

management and promotion of visits to culturally or historically sensitive sites

2. The organization contributes to the preservation of local sites and traditions of

historical, archaeological, cultural and spiritual significance

3. The organization values and incorporates authentic elements of traditional and

contemporary local culture

4. Historical and archaeological artifacts are not sold, traded or displayed, except as

permitted

D. Environmental impacts

1. Purchasing policies favor environmentally sustainable suppliers and products

2. The organization carefully manages the purchasing of consumable and disposable

goods

3. Energy consumption is measured by type and steps are taken to minimize use

4. Water consumption is measured by type and steps are taken to minimize use

5. Greenhouse gas emissions are measured and steps are taken to minimize them 6. The organization seeks to reduce transportation requirements and actively

encourages the use of cleaner and more resource-efficient alternatives

7. Wastewater is effectively treated and is only reused or released safely

8. Solid waste, including food waste is measured and steps are taken to minimize

use, or reuse and recycle

9. Use of harmful substances, including pesticides, paints, swimming pool

disinfectants, and cleaning materials, is minimized

10. The organization implements practices to minimize pollution from noise, light,

runoff, erosion, etc.

11. The organization supports and contributes to biodiversity conservation on its

property

12. The organization takes measures to avoid the introduction of invasive species

13. The organization follows appropriate guidelines for the management and

promotion of visits to natural sites

14. Interactions with free roaming wildlife are non-invasive and responsibly managed

15. No species of wild animal is acquired, bred or held captive without authorization

16. Wildlife species are not harvested, consumed, displayed, sold, or traded, except

as part of a regulated activity


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Annex D – Fishery case study 155

Mixed coastal demersal, coral reef and pelagic fishery

Kaimana Kabupaten in West Papua has a total land area of 16,241 km2 and a small population of

~53,000 (2010). Its marine environment is diverse, consisting of large mangrove and nipa-lined

estuaries, extensive karst landscapes, deep bays fronting the Aru Basin and numerous offshore

islands with associated fringing reef and lagoons. Since 2008, there has been an MPA covering

514,285 hectares of key coastal area habitat.

Anecdotal information from DKP and the private sector suggest at that the production in 2015

was least 5,000 tons – this includes fish landed or collected around Kaimana – a 17% increase

from 2013 landed figures. The main products from Kaimana are small pelagics, skipjack,

yellowfin, longtail tuna, Indian mackerel, snapper and other demersal and coral reef species, as

well as prawns.

The local Papuan coastal communities are mainly involved in small-scale fishing with small boats,

nets, hooks and line. Local communities do not generally engage in offshore fishing. Although

some community members work in the more commercial fishing operations in the area (such as

floating charts, or bagan), they are not directly involved in owning or managing any higher value

addition business.

Boats usually less than 5GT conduct the small-scale fishing in Kaimana and other nearby villages.

There appear to be two main types of boats, those of a more traditional wooden design (canoe

shape), and modern fiberglass types with a side outrigger. Some of the vessels are operated as

canoes with paddles and some have small inboard or outboard engines. Small-scale fishers

generally own and operate the small vessels. A typical fishing trip lasts between one and three

days, but sometimes longer.

Pelagic fish species, such as Spanish mackerel (Scomberomorus commerson), bubara (Caranx sp.),

skipjack (Katsuwonus pelamis) and other mostly neritic tuna, trevallies (Carangidae sp.), and barracuda (Sphyraena sp.) represent the highest volumes of catch for small-scale fishers. As for

demersal and reef fishes, the catch is dominated by snapper (Lutjanidae / Lethrinidae) and grouper

(Serranidae sp.). The fishing for demersal species takes place on near shore reefs and selectivity

is determined by hook size. The traditional fisheries known as sasi mainly target invertebrates

such as lobster and sea cucumbers but also some finfish, and employ closed seasons/areas of

several years. There is often a short harvest period and the system is monitored and enforced

by the community. In addition, the Arguni Bay, which covers approximately 50,000 hectares,

appears to support a significant gillnet fishery with two key target species, Barramundi (Lates

calcifaer) and Belanger’s croaker (Johnius belangerii), which are targeted for their swimming

bladders for the Chinese market (IDR 100,000 per kg dried), plus a mud crab fishery.

Main markets and key players

There are two key markets for the fish products landed in Kaimana:

1. Local market, which absorbs low value species; and

55 The following case studies are based on Marine Change experience in these areas, and were selected based on their coastal, small-

scale fisheries characteristics that are similar to Morotai.


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2. National and export markets, which capture the higher value species such as tunas and

demersal fish

Figure 27: Distribution of fish within Kaimana and export markets

Source: DKP

The local market is centered on one fish market located in Kaimana town near the basic port

landing area. According to DKP (2014) this market captures approximately 541 tons annually,

which represents 3% of the total fish catch from Kaimana and is focused mainly on these low

value species: small reef, demersal and pelagic fishes that are not the size/quality for exports.

Small local-level buyers, without a distinct market leader, dominate the market. It is unclear how

many different small, local-level buyers operate in the local fish market. However, the buyers are

divided into two types: those that operate in the morning or in the afternoon. The buyers either

sell their fish at the market or deliver it directly to local restaurants.

Buyers sometimes provide ice to the fishers (at IDR 1,000 per kg) to ensure better quality.

However, fish is generally landed fresh, iced or not, and sold quickly. If the fish is kept longer

and starts to deteriorate it is sold for a lower price and eventually dried or salted. It is assumed

that only the lower value smaller fish is landed and sold at the local market, and the higher

quality and export quality species are sold elsewhere.

Export market

The most important species targeted for export markets are Spanish mackerel and tuna, with

volumes of 4,445 tons and 4,428 tons respectively, with exports representing 51% of the total

volume of catch from Kaimana based on 2014 figures.

OverviewofthefisheriesmarketinKaimana

Fisher

Localmarket

Nationalandexportmarkets

Characteristics

• 1localmarket(pasar)• Manyplayers:villagelevelaggregators,

smallscale-markettraders• Lowqualityfish

• 3keyplayers• Clearmarketleader- PTIPNwith

approximately24%ofKaimana landings• Onesmallscalelocaltrader(PakGatot)• Onenewentrant(PTInti)

Localconsumption

• Scatteredthroughoutthe8sub-districts

%ofcatch

46%

51%

3%


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Figure 28: Main capture species and volumes, 2014

The export market is currently dominated by two key players, PT Industri Perikanan Namatota

(PT IPN) – a large company; and Pak Gatot, a medium-scale collector and trader. There is a

notable entry of a new market player, PT Hasil Inti Samudra Hasil Indo for Java, with significant

investments into processing in Kaimana completed in late 2016.

The main obstacle in the supply chain is Kaimana’s remote location, leading to lower prices for

fishermen than elsewhere in the country due to high transportation costs. PT Hasil Indo

processing facility may partially address this, as it is cheaper to transport processed fish. In

addition, communities further afield have infrequent collection of fish and supplies of ice leading

to lower production of fish for sale. This might be mitigated in 2018 by PT IPN’s investments

into larger collection vessels.

Deep demersal species

Many coastal fishers also fish in or near MPAs in deep water for high-value demersal species

such as snappers and goatfishes using various gear types including traps, handline, drop line,

longline, and deep-water gill nets. The deep-water demersal fisheries generally use larger boats

than coastal fisheries (up to 10GT or more) and are most often motorized with some cover

from the elements and have some form of cold storage and navigational systems, as well as

sonar to venture out and into the fishing grounds. The fishing trips can last from a day or two to

several weeks, the length most often being restricted by storage capacity, ice, fuel or weather.

These fish are of high value and quality if handled correctly.

Recent work by TNC has revealed that deep-water snappers are an especially diverse group of

species and require specific management to ensure sustainable exploitation given the different

stock status, distribution and abundance of the various species. This will require increased scientific understanding of the catch composition of the fisheries and both spatial and temporal

management measures to protect the vulnerable populations. The fisheries, typical of small-scale

4,333

4,452

4,428

1,438

1,308

1,300

Otherspecies

Mackerel

Tuna

Redsnapper

Kuwe

Kembung

2014FishcaptureKaimana(tonsbyspecies)

Source:DKP


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72

fisheries, often catch non- target demersal species, as the ship captains may frequently switch to

fishing either in shallower reef or pelagic species depending on conditions and catch.56

56 Guide to deep-water snapper identification. TNC 2015.


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Annex E – Fishery case study 2

Nyamyk/Karimunjawa deep-water snapper fishery

Nyamuk is a small island in the outskirts of the Karimunjawa MPA in the Java Sea. It is isolated

and lacks public transport and reliable communications. The population is 575 people (2015)

distributed among approximately 170 households, of which 95% are dependent on fishing for

their income. Fishermen in Nyamuk village catch various commodities; based on a landing survey

conducted in September through December of 2015, the main catches were yellowtail (44%)

and red snapper (39%).

Snapper and grouper are caught using spear gun, handline and trap (bubu). Fishers who use bubu

also conduct handline fishing while they wait for their traps (trips last three to five days on

average). Based on the information from the village head, there are around 24 active babang

fishing units out of the fleet of 64 in total. The babang fishing involves around two to three

fishers. Although some babang fishing does take place inside the Karimunjawa marine park, the

majority of the activity takes place outside of the park in deep water. The fishermen report

travelling up to 120 nm to the fishing grounds, a trip that takes a minimum of three to four days.

The other fishing techniques take place within the park and are mainly one to two day trips.

The majority of the high value red snapper and grouper caught inside the MPA are sold to the

largest village trader, Pak Wadi. He has partnerships with 20 of the fishing units of babang, and

his share of snapper production is estimated around 70% to 90% of the total red snapper catch

landed in Nyamuk village.

Red snapper is sold both for domestic markets and export. Fishers and the Nyamuk-based

traders depend on other intermediaries located in Jepara and Semarang for market connection.

The primary domestic target market the Muara Angke fish market, the hub of fish distribution in

Jakarta and surroundings. The traders in Jepara transport fish to Jakarta, a journey of around 16

hours, with open back, non-refrigerated trucks. The export markets include Singapore and Malaysia, handled through an exporter based in Semarang. The catch is collected in Jepara by the

exporter and transported to Semarang. The exporter then repacks the catch and sends it using

airfreight services through Semarang airport. The Nyamuk-based traders do not seem to have

loyalty to any one intermediary in Jepara or Semarang and choose the buyer based on price and

their ability to pay in cash.

The main issue encountered in Nyamuk was its remote location and infrequent shipments of fish

to mainland due to bad weather or low catch. During these times the traders and fishers may

run out of ice and the fish loses quality/value. The study recommended investment into local

small-scale ice making that would create an opportunity for upgrade and market development

focused on high economic value commodities red snapper and grouper. These two high-value

products have significant demand in both domestic and foreign markets (especially Singapore,

Malaysia, and Taiwan). In the future, it might also be possible to explore species such as longtail

tuna, bonito and various reef fish species, once a program is in place targeting the high-value

species and suitable higher value markets are identified in parallel.


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Annex F – Fishery case study 3

Kaimana mud crab mangrove fishery57

The Kaimana mud crab fishing ground is in Araguni bay, which is located within the larger

Kaimana MPA in Papua. In four villages where data collection has been conducted by MDPI

there are 137 fisher ladies. Women typically fish for bait together, and then set and harvest crab

traps individually. All of the crab fishers are women; men make more money hunting deer.

The mud crabs are harvested using collapsible traps. There is no bycatch but cut fish or eels are

used as bait. Dugout wooden boats, generally 4-5 meters long, are used to set and check the

traps and are powered by oar. The average number of traps fished appears to be five, with an

average daily catch ranging from 6-8 kg. Processing facilities are fairly small, consisting primarily

of holding tanks to keep the crabs alive, and packing facilities. The capital investment for fishing

is very low, although there is still some borrowing from buyers. The best month for fishing is

November; harvest peaks and the prices are also high in anticipation of the holiday season. Both

prices and harvest levels are roughly 30% lower in June and July than in November. There is no

fishing in October when soft shell crabs predominate.

Crabs are sold live. The highest value crabs (greater than 500g) are exported to Singapore.

Smaller crabs may be exported or sold in places like Jakarta. Because the crabs are shipped by

air, quarantine services are fairly strict, so only larger (above 300g – this is the legal minimum

size but also the minimum size that makes air freight worthwhile) males are shipped out of

Kaimana. It is not legal to ship female crabs, which are sold at much lower prices to local

markets.

Crab prices vary with size; in June 2016 the smallest (300g) were IDR 20,000/kg (USD 1.50),

medium (300-500g) IDR 50,000/kg (USD 3.75), and the largest (500g+) IDR 60,000/kg (USD

4.50). Female crabs make up about 20% of what is sold and generally fetch about IDR 16,000/kg

regardless of size. In 2014, official reports from fish quarantine were that 3.5 tons of crabs were shipped out of Kaimana. Catches have apparently been stable in recent years, although prices

have recently increased. According to one buyer, the price doubled over the last year prior to

the study.

There are three primary buyers in Kaimana, all of which deal directly with fisher ladies. MDPI is

working to secure higher prices for the remote communities in Arguni through specialist buyers

based in Bali willing to pay a small premium.

57 Michael D Alessi (2016). The fishery performance indicators: evaluating fishery management systems. University of Florida.

an overview of tourism and reef & demersal - USAID

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