Indonesia’s Seafood Export to Hong Kong Disrupted by China Trade Policy

Indonesia’s seafood export to Hong Kong has come to a halt since March 2025, hitting fish farmers in Natuna and Anambas hard.

Previously, Hong Kong-flagged vessels regularly collected live grouper and Napoleon fish from these remote Indonesian islands.

That trade route collapsed after China increased maritime inspections as part of broader anti-smuggling and trade enforcement efforts.

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As fish accumulate in pens and costs mount, aquaculture businesses now face rising losses and operational uncertainty.

Officials Confirm Fish Export Freeze Due to Absent Hong Kong Buyers

The Indonesian government has acknowledged the export freeze, confirming that no vessels from Hong Kong have arrived since March.

“There have been no Hong Kong ships coming to collect live fish,” said Semuel Sandi Rundupadang, head of Batam’s Marine Surveillance Base.

He added that exporters are left with few alternatives, as live fish shipments depend on fast and stable supply chains.

The Ministry of Maritime Affairs is monitoring the situation, which has impacted both livelihoods and foreign trade earnings.

Natuna Fish Farmers Face Higher Costs and Shrinking Market Access

In Natuna, farmers have been forced to hold on to fish ready for export due to the stalled shipments.

“The fish are mature and ready, but we can’t sell them to Hong Kong,” said a local worker managing an aquaculture pen.

Farmers must continue feeding and maintaining the fish, driving up daily expenses and straining already tight margins.

Some have turned to domestic markets, but lower prices and smaller demand have not compensated for lost exports.

Air Freight Emerges as Stopgap Despite Unsustainable Logistics Cost

To bypass maritime delays, some exporters have begun shipping live grouper to Hong Kong using air freight routes.

Air cargo reduces travel time but significantly raises transportation costs, limiting its use to high-grade fish.

Exporters say that flying fish from Makassar to Hong Kong costs around Rp35,000 (US$2.20) per kilogram.

Only premium species like the Kerapu Sunu, with strong market demand and high value, justify the added expense.

China’s Tighter Checks Reflect Broader Anti-Smuggling Crackdown Effort

Analysts suggest the stricter checks are part of China’s broader campaign to tighten border and trade control.

While officially aimed at smuggling, the measures may also align with Beijing’s strategy amid US-China trade tensions.

Hong Kong, despite its autonomy, is expected to implement Beijing’s policies across ports and trade channels.

Other sectors have also felt the effects of increased scrutiny, with delays and uncertainty spreading regionally.

Regional Leaders Urge Central Government to Open Diplomacy with China

Semuel Sandi Rundupadang called on Indonesia’s central government to directly address the issue with Beijing.

“This problem is beyond our jurisdiction in Natuna or Batam; it needs national-level diplomacy,” he stated.

While the Maritime Ministry has yet to issue a formal policy, internal discussions are reportedly underway.

Industry leaders fear further inaction could lead to permanent loss of market share and income for local fishers.

Indonesian Seafood Sector Braces for Wider Regulatory Disruptions

The disruption in Natuna and Anambas reflects a broader fragility in Indonesia’s seafood export system.

Similar delays have been reported in Bitung, Tarakan, and Manado—ports also reliant on live fish exports to Hong Kong.

Indonesia, a top seafood exporter in Southeast Asia, is now being squeezed by tightening regional trade enforcement.

Efforts are growing to reduce reliance on single markets and improve logistics resilience through national strategy.

Industry Seeks Market Diversification and Investment in Cold Logistics

Stakeholders are urging investment in cold storage, digital traceability, and direct air routes to stabilize trade.

Alternative destinations in Japan, South Korea, and Southeast Asia are being considered to reduce dependency on China.

Export hubs outside Natuna are also under review to spread geographic risk and ease clearance congestion.

The seafood sector, critical to Indonesia’s coastal economy, must now adapt to global shifts or risk deeper crisis. ***

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