The Ministry of Maritime Affairs and Fisheries will require all foreign fishing vessels to give 70% of their catch to Indonesia’s processing plants, the ministry's spokesman, Aji Sularso, said on Tuesday. Under the new regulations, foreign vessels in Indonesian waters would be allowed to take only the remaining 30% overseas. “This will constitute a prerequisite for any foreign fishing company intending to invest in Indonesia in cooperation with local bodies,” he said.

As from 2005, the government will revoke all quota allocations given to foreign companies cooperating with local fishing companies in Indonesia. Cooperation will now take the form of bilateral arrangements between Indonesia and Thailand, the Philippines and China, but the quota allocation for the Indonesian Exclusive Economic Zone will not be extended.

The bilateral arrangement with the Philippines will expire in December 2005, and the agreement with Thailand - in September 2006. The agreement with China will be extended in July 2006 to the end of the year, so that as from 2007 there would no longer be foreign fishing vessels operating under license arrangements, Aji Sularso said. However, they could still operate in Indonesia under a joint investment or joint operation scheme. Besides setting aside 70% of the fish caught for the Indonesian industry, the foreign vessels would also be obliged to employ local fishermen for up to 40% of their total crew members.