Jakarta (ANTARA) - The government aims to raise the Indonesian Fishers' Terms of Trade (NTN) to 120 next year to improve the welfare of coastal communities, Coordinating Minister for Food Affairs Zulkifli Hasan said.
In a statement received here on Friday, he noted that the NTN stood at 108 in 2026, up from 103 a year earlier. He emphasized the importance of further improving the indicator, considering that many Indonesian fishers remain economically vulnerable.
"An NTN of 103 means that fishers earn only Rp3 million (around US$165) from every Rp100 million in expenditure, which is effectively a loss," the minister explained.
In such circumstances, fishers often struggle to afford their children's education without government assistance in the form of 30 kilograms of rice and cash aid, he added.
To achieve the NTN target, he continued, the government will continue fostering a more enabling business ecosystem for coastal communities through the Red and White Village Cooperatives program and empowerment initiatives for micro, small, and medium enterprises.
Hasan also highlighted reductions in interest rates for government-backed lending programs, noting that rates have been capped at 8 percent for loans disbursed through state-run microlender PNM Mekaar and 6 percent for the People's Business Credit (KUR) program.
Further underscoring the importance of improving the NTN, he argued that the weak economic position of domestic fishers could have implications for Indonesia's maritime defense and sovereignty.
The minister said limited access to financing often prevents Indonesian fishers from acquiring larger fishing vessels capable of operating in the country's Exclusive Economic Zone and the open sea.
"Our seas have been robbed because our farmers are weak and unable to sail far, resulting in a decline in state revenue," he said, citing annual losses of Rp250 trillion (nearly US$14 billion) due to illegal fishing by foreign vessels.
With that in mind, Hasan pointed to the need for stronger government intervention in coastal communities, citing reforms in subsidized fertilizer distribution and adjustments to unhusked rice purchase prices that have helped raise the Farmers' Terms of Trade to 131.
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Translator: Shofi Ayudiana, Tegar Nurfitra
Editor: Azis Kurmala
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