Anti-IUU measures could positively affect pricing

In December last year, the Indonesian government made an announcement that the Indonesian armed forces would fight illegal fishing in the country's water territory to protect its fish and other resources at sea from illegal activities. In recent weeks, the Indonesian Navy has seized and sunk dozens of foreign fishing boats from neighbouring countries such as Malaysia and Vietnam, many of which were in search of high-value species like tuna. The Indonesia government has stated that it will aggressively pursue vessels that do not have the requisite licenses to operate in local waters, and will soon enact regulations to against all illegal activities in Indonesian waters.

Pingtan currently owns 129 fishing vessels and says that 117 of these vessels are fully licensed and operating in the Arafura Sea in Indonesia.

"We acknowledge the recent measures taken by the Indonesia Government in fighting against illegal fishing activities, and we will fully support the efforts of Indonesia Navy forces to protect the rich resources in the water of Arafura Sea,” said Xinrong Zhuo, Pingtan’s chairman and CEO.

“We have taken all of the necessary steps to ensure that our vessels operate in a manner that is consistent with Indonesia's regulations and believe these recent developments are a positive indicator for fully licensed fishing companies like ours. We believe that past illegal fishing activities have put a strain on pricing while also resulting in end-consumers receiving lesser quality products. We look forward to operating in a safer and protected environment in a regulated and legitimate market."