Jakarta. The Marine Affairs and Fisheries Ministry (KKP) is proactively addressing the anti-dumping case affecting Indonesian frozen shrimp export to the United States (US). To mitigate the impact, the ministry is diversifying export markets to several potential countries, including China, Japan, Australia, and South Korea.

According to ITC Export Potential data, these four countries collectively represent an estimated market potential of $800 million, equivalent to 121,000 tons of frozen shrimp.

Budi Sulistiyo, Director General of Competitiveness of Marine and Fisheries Products (PDSPKP) at KKP, explained that anti-dumping tariffs and countervailing duties (CVD) have made Indonesian frozen shrimp less competitive in the US market. Therefore, it is crucial to optimize potential export markets for Indonesian shrimp, where the current market share is relatively small.

"ITC Export Potential data indicates there are alternative market opportunities, given that the quality of Indonesian shrimp is comparable to that of other countries. Diversifying the market for Indonesian shrimp must be supported by enhancing the efficiency of cultivation, processing, and logistics operations to ensure competitive pricing," Budi said on Monday.

In response to the anti-dumping tariffs and CVD, KKP continues to coordinate with the Trade Ministry, the Coordinating Ministry for Maritime Affairs and Investment, and the shrimp industry to ensure smooth exports to the US. KKP has also sent a letter to the Indonesian Embassy in Washington DC to secure communication support with US authorities. This is necessary for the hearing process to defend against the preliminary determination of the dumping margin on Indonesian frozen shrimp.

"We are continuously taking necessary steps to address the US authorities' allegations against Indonesian shrimp," Budi emphasized.

Previously, Marine Affairs and Fisheries Minister Sakti Wahyu Trenggono set a target for the next five years (2025-2030) for Indonesia to dominate several global commodity supply chains, including shrimp, lobster, crab, seaweed, and tilapia.

Erwin Dwiyana, Marketing Director of PDSPKP KKP, added that Indonesia is looking to tap into the Chinese market, with an export potential gap estimated at $544 million until 2028. "Specifically for the Chinese market, Indonesian shrimp prices can still compete with those from Ecuador," Erwin explained.

In Japan, the export potential gap for shrimp until 2028 is estimated at $214 million. Japan is a promising market for both frozen and processed Indonesian shrimp. "Currently, Indonesia ranks third as the largest shrimp supplier to Japan with a market share of 16.5 percent, competing with Vietnam and Thailand," Erwin noted.

South Korea also presents a potential market with an export potential gap estimated at $26 million until 2028. Indonesia's competitors in the South Korean market include Vietnam and Thailand. For the Australian market, the export potential gap is estimated at $30 million in 2028. "We currently contribute only 1.32 percent to the Australian shrimp market," Erwin concluded.