Despite Thailand and Indonesia pledging to finalise a Memorandum of Understanding (MOU) on fisheries this year, the industry is critical saying the accord fails to address various fundamental problems, reports Michael Mackey.
Aside from the encroachment of Indonesian waters by Thai operators, Indonesian regulations on fisheries and joint-venture businesses are seen as the main barriers.
Thai Foreign Minister Kasit Piromya plans to tackle these problems during the upcoming Thai-Indonesian Joint Commission where he plans to raise the issues of false licences and Jakarta's readiness to upgrade the infrastructure for the fisheries processing industry.
"To resolve the problems, Thai boats will have to register before leaving Thailand and inform Indonesian authorities about where they are going to fish," he said. Indonesia has also promised to keep the Thai private sector updated about their plans to get rid of the false licence problem, he added.
In 2007, Jakarta introduced new regulations in its territorial waters. Thai operators must also form joint ventures with Indonesian companies and set up new businesses such as fish processing or ice making which will help create jobs and add value to the Indonesian economy.
Indonesia is a vital fishery resource for Thailand. Currently Thai fishing boats catch between 300,000 and 400,000 tonnes of fish annually from Indonesian waters for local consumption and the processing industry. However, Thailand's private sector is dismissive of the MOU saying it contains nothing new.
Indonesia has its own problems such as high transport costs, underdeveloped water and electricity systems and ports and low purchasing power, Aphisit Techanitisawad, honorary adviser and director of the Thai Overseas Fisheries Association told one newspaper. The two governments had been trying to reach an agreement for some years he pointed out but Jakarta had delayed the decision.