1. Chile Report: Salmon Farming
At the beginning of 2019, we took the opportunity to visit salmon farming operations in the Chilean summer.
Bonafide travelled to Indonesia, the world’s third-largest producer of Fish & Seafood, in February 2025. Thanks to our packed schedule in the capital Jakarta, the region around Surabaya and the island paradise of Lombok, we gained a number of insights into the up-and-coming industry. There is still a lack of listed Pure Play companies, but that is only a matter of time. Here are a few of our impressions.
Two thirds of volume from aquaculture, one third from fishing
With a share of around 7% of global Fish & Seafood production, Indonesia ranks behind China and only just behind India in second place. In 2022, Indonesia produced around 22 million tonnes of Fish & Seafood. This can be broken down into 14.6 million tonnes from aquaculture and 7.4 million tonnes from wild catches. In aquaculture, however, 9.2 million tonnes are accounted for by aquatic plant products such as red algae, which are required for the production of carrageenan and agar.
The most commonly produced species are tilapia (1.2 million tonnes) and catfish (1.1 million tonnes). These species are omnivores and can therefore be fed on inexpensive plant-based feed. They are also not very demanding in terms of water conditions, so they are farmed by numerous small operators in Indonesia. The whiteleg shrimp in third place (0.7 million tonnes) requires different treatment, in that it needs animal proteins in its feed mix. The most common species from wild catches are tuna (1.1 million tonnes) and a range of pelagic fish such as mackerel and squid.
Meetings and harbour tour in Jakarta
Indonesia’s capital city, the metropolitan area of which has a population of 30 million, second only to Tokyo, is home to a number of corporate leaders as well as the financial industry. Thanks to our network, we were able to visit the harbour in Jakarta, where old fishing boats meet ultra-modern deep-freeze logistics buildings. We met a start-up that generates sales of around USD 30 million, collecting small volumes from fishermen in remote coastal locations throughout Indonesia. In future, they would like to process this stock in house in order to increase their margins. We took a detour into the poultry value chain and met the managers of a listed company. We were also updated on the economy and financial flows by the financial and macro analysts from a local broker firm.
Sightseeing in Surabaya
After a few days in Jakarta, we travelled on to Indonesia’s second largest city, Surabaya, which is also located on the main island of Java, but to the south-east. While for tourists the Bromo volcano in the region is a spectacle, we also travelled to a surimi factory north of the city. A food company listed in Malaysia recently invested USD 16 million in additional capacity in the plant. Surimi is obtained from pelagic fish and serves as a protein-rich, healthy base for other confections such as fishcakes or imitation crab meat.
The factory’s location is strategic, as the harbour is only 15 minutes away and provides access to the Java Sea. The following day, the focus was on whiteleg shrimp, when we visited a new fish feed factory owned by a Thai company. As this local factory is formed as a joint venture, we were introduced to the other shareholders. One of the co-owners is a shrimp farmer with a volume of around 8,000 tonnes who is currently developing AI-supported software to improve reporting. Another co-owner is one of the largest seafood processors in Indonesia with over 14,000 employees. The company is privately held but would be categorised as a mid-cap on the stock exchange.
Around Lombok in 36 hours
Our trip ended with a tour around the island of Lombok. The only thing missing was a visit to a large-scale shrimp farm. Another privately owned company took us to the north of Lombok, where shrimp are bred in over 100 ponds on 25 hectares. Our excursion included an overnight stay on the farm with direct access to the sea. The facility is isolated from other breeders, thus ruling out the transmission of diseases from other locations. The plant has been in operation for 30 years and earns good money.
In the south of Lombok, producers also breed lobsters using the ranching model. The young lobsters hide in compressed paper traps 12 meters below the water's surface and are then fed to market maturity within a few months. As is well known, the prices for lobster are very high, so the market cannot tolerate too high a volume. As Lombok is a paradise for producing rice, our trip ended with a visit to a rice mill. The island produces around 1 million tonnes of rice per year and exports around a third of this to other regions in Indonesia.
How Indonesia compares internationally
Major players are beginning to establish themselves in Indonesian aquaculture. With access to capital and technology, the traditional ponds of small farmers may soon be a thing of the past. However, this will take a few years. There are opportunities for inventors and pioneers wishing to adapt technology from Norway to Indonesia, for example.
Inside the processing plants, there is nothing to suggest that you are in rather poor regions of Indonesia. Exporters in South East Asia are required to adhere to international standards, which include regular audits by third-party inspectors.
In this regard, we were positively surprised by our trip, despite not everything being up to the standard we are used to. The time seems ripe for investment in Indonesia.
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