JAKARTA/GUANGZHOU — Indonesia’s shrimp industry is racing to find new markets after the United States imposed a 19% import tariff on Indonesian shrimp, disrupting a critical export sector that employs over a million workers. The move, part of Washington’s broader trade policy, has forced Indonesian exporters to pivot swiftly towards China, the Middle East, South Korea, and the EU, in an effort to mitigate heavy losses.
At the heart of the disruption is Denny Leonardo, a shrimp farmer in Java’s Banten province, whose plans to expand his 150-pond farm by 100 additional ponds in 2025 were thrown into turmoil after the US—the largest buyer of Indonesian shrimp—began reducing orders following initial tariff threats in April. Despite the tariff being reduced from an initial proposal of 32% to 19% after negotiations in July, the damage to business confidence and export volumes has already been done.
US Shrimp Tariffs Could Slash Indonesian Exports by 30%
In 2024, the US accounted for 60% of Indonesia’s US$1.68 billion shrimp exports. Now, industry leaders warn that the 19% tariff could cause exports to the US to drop by as much as 30% in 2025.
“This isn’t just about numbers; it’s about livelihoods,” said Andi Tamsil, head of Indonesia’s Shrimp Farmers’ Association. “Over a million people rely on this industry, and with US buyers holding back, we must urgently diversify.”
Indonesia faces stiff competition from Ecuador, the world’s top producer of farmed shrimp, which enjoys a lower US import tariff of 15%, further eroding Indonesia’s price competitiveness.
China Becomes Priority Market as Industry Launches Promotion Drive
China, the world’s largest shrimp importer, has traditionally played a minor role for Indonesia, purchasing just 2% of its shrimp exports. However, industry stakeholders are now actively courting Chinese buyers. In June, a delegation led by Mr. Tamsil traveled to Guangzhou, engaging with importers, restaurant chains, and e-commerce platforms to promote Indonesian shrimp as a premium alternative.
“We have a tremendous opportunity in China, which imported around 1 million tonnes of shrimp last year,” said Tamsil. “If we can capture just 20% of that market, it would transform our industry’s prospects.”
Further trade missions to China are planned for the coming months, as exporters work to reposition Indonesian shrimp in a market previously dominated by Ecuador, India, and Vietnam.
Beyond China: Diversification to Middle East, EU, and Asia
Budhi Wibowo, chairman of Indonesia’s Seafood Business Association, emphasized that China is not the only target. “We are also looking towards the Middle East, South Korea, Taiwan, and the European Union,” he said. Indonesia is in the final stages of negotiating a Free Trade Agreement (FTA) with the EU, which could open up new high-value markets for seafood exporters.
“Diversification is no longer optional,” Wibowo stressed. “The US market volatility has exposed our vulnerability. Our future depends on building a broader, more resilient export base.”
Policy Response and Industry Outlook
The Indonesian government, through its Ministry of Maritime Affairs and Investment, has pledged to support the shrimp sector with export promotion campaigns, logistical assistance, and fast-tracked trade negotiations. Analysts say, however, that penetrating new markets will take time and sustained effort, especially in terms of meeting China’s stringent quality standards and navigating EU regulatory frameworks.
While the immediate outlook remains challenging, industry leaders believe Indonesia’s competitive farming costs and established aquaculture infrastructure will help it regain momentum in global markets over the next 12-18 months. (zai)