The Implication of Fisheries Subsidies Policy on the Development of Capture Fisheries

Abstract

Subsidies known as an allocation of public funds for a specified group of communities. Fisheries subsidies are a fiscal policy instrument, commonly used by goverrunent to achieve fisheries development target. However, this policy is not explicitly admitted by Departement of Fisheries and Marine Affair. The alocation of fisheries subsidies have already existed since Pelita I, but the nwnber was still fluctuated. During the year 1975 to 2000, there were about 4% to 75% subsidy allocation (directly and indirectly) in the fisheries development budget. Meanwhile, from those allocation there were about 14% to 29% accepted by fishing communities in the North Coast of Java The North Coast of Java was selected as a research area since this location is known as one of the crowded fisheries areas in Indonesia, and can be called as an unregulated fisheries area An indepth study was conducted at eight fish landing centers in the North Coast of Central Java 1'h.is research was subtantially purposed to fmd the relationship between the fisheris subsidies and: (l). Fishing effort, (2). Fish stock, (3). Fish catch, (4). Economic rent and (5). Total economic benefits from fishing activities. 1'h.is research combined biophysical approach and economic approach (economic rent and resource optimizing). The bioeconomic approach had the advantages over the econometric approach, since the slope of variables can be derived.