Matchmaking Projects with Communities: Analysing whether Livelihood Improvement Initiatives Meet the Needs and Constraints of Poor Fishers in West Sumatra

MATCHMAKING PROJECTS WITH COMMUNITIES:
ANALYSING WHETHER LIVELIHOOD IMPROVEMENT INITIATIVES MEET
THE NEEDS AND CONSTRAINTS OF POOR FISHERS IN WEST SUMATRA.

RICHARD STANFORD

GRADUATE SCHOOL
BOGOR AGRICULTURAL UNIVERSITY
BOGOR
2014

DECLARATION OF THE SOURCE OF THIS DISSERTATION
I declare that this dissertation, entitled: “Matchmaking projects with communities:
Analysing whether livelihood improvement initiatives meet the needs and
constraints of poor fishers in West Sumatra” is entirely my own work, assisted by
a supervisory committee and has not been submitted in any form for another
degree or diploma to any university or other tertiary institution of education.
Where this dissertation draws on existing publications, those sources are cited in
the text and listed in the references section.

Bogor, May 2014

Richard Stanford
C462108012

ABSTRAK
RICHARD STANFORD. Matchmaking projects with communities: Analysing
whether livelihood improvement initiatives meet the needs and constraints of poor
fishers in West Sumatra (Proyek-proyek terkait dengan kebutuhan masyarakat
nelayan: Apakah kegiatan peningkatan mata pencaharian sesuai dengan kebutuhan
nelayan miskin di Sumatra Barat?). Dibimbing oleh JOHN HALUAN, BUDY
WIRYAWAN, DIETRIECH BENGEN and RUDI FEBRIAMANSYAH.
Meskipun perekonomian yang tumbuh dengan pesat, namun banyak
masyarakat Indonesia yang masih hidup dalam kemiskinan atau rentan untuk
masuk kategori miskin. Perikanan merupakan sektor perekonomian yang
berkaitan erat dengan kemiskinan dan telah ada sejumlah program-program untuk
meningkatkan mata pencaharian di kalangan nelayan. Kekhawatiran akan
kegagalan dari program-program itu tetap masih ada sehingga program itu tidak
selalu tepat dengan kebutuhan mereka. Menanggapi kekhawatiran ini, penelitian
ini dilaksanakan di Provinsi Sumatera Barat dengan melakukan wawancara di 25
desa nelayan, ditambah dengan data sekunder, untuk mengevaluasi 3 hal berikut;

1) kategori nelayan yang miskin dan apa hubungan antara kemiskinan dan
perikanan, 2) faktor-faktor yang menolong atau menghambat mata pencaharian
mereka dan 3) apakah program peningkatan mata pencaharian mengatasi faktorfaktor ini. Dari hasil analisis, nelayan miskin bertambah banyak jumlahnya,
terutama buruh, pemilik perahu kecil dan pedagang. Kemiskinan tidak berkorelasi
signifikan dengan ketergantungan pada sektor perikanan tetapi berkorelasi secara
signifikan dengan kemiskinan di sektor pertanian. Memang tingkat kemiskinan di
sektor perikanan tinggi dibandingkan sektor lain tetapi tingkat kemiskinan itu
berkurang ketika sektor ekonomi lain meningkat misalnya layanan dan keuangan.
Sebanyak 31 faktor penghambat dan pendorong diidentifikasi dan dikelompokkan
menurut enam kategori sumberdaya. Wawancara dengan 151 rumah tangga dari
berbagai sektor perikanan di dua komunitas nelayan yang dianalisis menggunakan
skala multi-dimensi. Pemilik kapal memiliki sumberdaya buatan (physical
capital), sumberdaya keuangan dan sumberdaya manusia lebih tinggi dari buruh
tapi tidak ada perbedaan sumberdaya alam, sosial dan kelembagaan. Dukungan
kelembagaan di semua sektor lemah. Untuk menjembatani celah antara buruh dan
pemilik, program-program pemerintah terfokus pada sumberdaya buatan tanpa
menguatkan sumberdaya keuangan dan manusia. Dalam kesimpulan penelitian ini
empat rute yang berpotensi menjadi jalan keluar dari kemiskinan untuk nelayan
dijelaskan bersama dengan rekomendasi bagaimana program peningkatan mata
pencaharian masa depan bisa lebih dapat memenuhi kebutuhan dan kendala dari

masyarakat miskin.
Kata kunci: Pengentasan kemiskinan, Diversifikasi Mata Pencaharian, Perikanan
skala kecil, Skala Muli-Dimensi (MDS)

ABSTRACT
RICHARD STANFORD. Matchmaking projects with communities: Analysing
whether livelihood improvement initiatives meet the needs and constraints of poor
fishers in West Sumatra (Proyek-proyek terkait dengan kebutuhan masyarakat
nelayan: Apakah kegiatan peningkatan mata pencaharian sesuai dengan kebutuhan
nelayan miskin di Sumatra Barat?). Dibimbing oleh JOHN HALUAN, BUDY
WIRYAWAN, DIETRIECH BENGEN and RUDI FEBRIAMANSYAH.
Despite a fast growing economy, many Indonesians still live in poverty or
are vulnerable to falling into poverty. Fishing is an economic sector closely
associated with poverty and there has been a range of initiatives aimed at
improving livelihoods and reducing poverty amongst poor fishers. Concerns
remain that these initiatives have failed to target the right people in the right way.
In response to this concern, this research based in the province of West Sumatra
uses interviews in 25 fishing communities, coupled with secondary data, to
evaluate; 1) the sectors of the fishing industry that the poor operate in and what
the relationship is between poverty and fishing, 2) the factors that enable or

constrain their livelihoods and 3) whether livelihood improvement programs
address these factors. The analysis highlights that poor fishers are growing in
number and are mainly labourers, small boat owners and small-scale
processors/traders. Poverty in fishing is not significantly correlated with fishing
dependency but is significantly correlated with poverty in the agricultural sector.
Fishing is a poor economic sector, but incidences of poverty are less when other
economic sectors, for example the service and financial sector, are strong. Thirty
one enabling and constraining factors were identified and grouped according to
six asset categories. Interviews with 151 households from a variety of
backgrounds in two fishing communities were analysed using multi-dimensional
scaling. Vessel owners possess higher physical, financial and human capital than
crew members but that there was no difference in the natural, social and
institutional fields. Institutional support across all sectors scored poorly.
Government programs tend to bridge the gap between crew members and owners
by providing physical capital without necessarily addressing the underlying
financial and human capital limitations that labourers face. The research
concludes with an explanation of the main routes out of poverty for a poor fisher
and recommendations and how future livelihood improvement programs can
better address the needs and constraints of the poor.
Keywords: Poverty alleviation, Alternative livelihoods, Small-scale fisheries,

Multi-dimensional scaling (MDS)

RINGKASAN
RICHARD STANFORD. Matchmaking projects with communities: Analysing
whether livelihood improvement initiatives meet the needs and constraints of poor
fishers in West Sumatra (Proyek-proyek terkait dengan kebutuhan masyarakat
nelayan: Apakah kegiatan peningkatan mata pencaharian sesuai dengan kebutuhan
nelayan miskin di Sumatra Barat?). Dibimbing oleh JOHN HALUAN, BUDY
WIRYAWAN, DIETRIECH BENGEN and RUDI FEBRIAMANSYAH.
Meskipun perekonomian yang tumbuh dengan pesat, namun banyak masyarakat
Indonesia yang masih hidup dalam kemiskinan atau rentan untuk masuk kategori
miskin. Perikanan merupakan sektor perekonomian yang berkaitan erat dengan
kemiskinan dan telah ada sejumlah program-program untuk meningkatkan mata
pencaharian dan mengurangi kemiskinan di kalangan nelayan. Kekhawatiran tetap
ada bahwa program ini telah gagal untuk menargetkan orang yang tepat dengan
cara yang benar. Penelitian ini bertujuan untuk menjawab kekhawatiran itu
melalui tiga tahap logis.
Pertama (bab 4), dua indeks dibuat yang memetakan ketergantungan perikanan
dan kemiskinan di tingkat kabupaten, kecamatan dan kelurahan. Menggunakan
data sensus kerja dan kemiskinan di semua sektor ekonomi, kemiskinan nelayan

dibandingkan dengan kemiskinan di sektor lain menggunakan matriks korelasi
Kendall-Tau untuk menguji apakah perikanan skala kecil benar-benar berkorelasi
kemiskinan (fisheries rhymes with poverty) dengan data empiris. Tahap ini
mengidentifikasi tren berikut; 1) bahwa jumlah nelayan miskin bertambah banyak
dan bahwa mereka sebagian besar adalah buruh bukan pemilik perahu, 2)
perikanan bersama dengan pertanian tanaman pangan adalah dua sektor di mana
tingkat kemiskinan terbesar, 3) tidak ada hubungan yang signifikan antara tinggi
ketergantungan perikanan dan proporsi kemiskinan yang tinggi di antara nelayan,
4) terdapat hubungan yang signifikan antara ketergantungan pertanian dan jumlah
persentase kemiskinan di masyarakat pesisir dan 5) ada korelasi terbalik antara
kekuatan sektor ekonomi lainnya, misalnya sektor layanan dan keuangan, dan
kemiskinan di sektor pertanian. Metodologi ini memiliki aplikasi penting untuk
implementasi program tata ruang kelautan secara nasional.
Kedua (bab 5), melalui wawancara dengan nelayan, tokoh masyarakat dan
pegawai pemerintah di 25 desa nelayan di Sumatera Barat, 31 faktor penghambat
dan pendorong mata pencaharian nelayan ditemukan dan dikelompokkan menurut
enam kategori sumberdaya; yaitu sumberdaya alam, sumberdaya manusia,
sumberdaya sosial, sumberdaya keuangan, sumberdaya buatan dan sumberdaya
kelembagaan. Dalam bab 6, 43 atribut dibuat untuk mengukur posisi rumah
tangga pada skala terbaik sampai terburuk untuk masing-masing faktor. Dua

komunitas nelayan dipilih berdasarkan analisis kluster, Sungai Pinang, sebuah
desa kecil yang terisolasi dengan ketergantungan yang tinggi pada alat tangkap
tradisional, dan Ampang Pulai, pelabuhan yang memiliki kapal yang lebih besar
dan konektivitas ke pasar yang baik. Wawancara dilakukan dengan 151 rumah
tangga dari masyarakat tersebut dan dianalisis dengan menggunakan skala multidimensi. Rumah tangga ini termasuk baik pemilik, maupun buruh dan dipilih dari
empat sektor industri perikanan yaitu, bagan, payang, sampan dan pukat tepi, serta

kelompok kelima 'lain' warga pesisir. Pemilik kapal memiliki sumberdaya buatan,
keuangan dan manusia lebih tinggi dari buruh tetapi tidak ada perbedaan
sumberdaya sosial dan kelembagaan. Dukungan kelembagaan memang lemah
untuk semua sektor.
Ketiga (bab 7), kompilasi jenis program peningkatan kesejahteraan masyarakat
pesisir melalui data sekunder dilakukan dan data tersebut dianalisis dengan
menggunakan statistik deskriptif dan tiga studi kasus dipilih yang
mengidentifikasikan praktek yang baik dan buruk, terkait isu-isu sosial, ekonomi
dan kelembagaan di proyek pengembangan kesejahteraan. Program ditargetkan
pada masyarakat miskin pesisir oleh DKP antara 2005-2009 menekankan
peningkatan modal fisik melalui penyediaan alat tangkap, mesin dan peralatan
pengolahan. Semua intervensi ini dapat bermanfaat bagi pemilik perahu kecil tapi
banyak dari mereka tidak akan menguntungkan buruh. Program kontemporer

GPEMP memiliki proporsi yang lebih besar dari intervensi di luar sektor
perikanan, misalnya peternakan sapi, yang berpotensi membantu buruh, tetapi
masih ada bias kuat terhadap intervensi sumberdaya buatan di sektor perikanan.
Pendekatan ini yang berusaha menjembatani celah antara buruh dan pemilik
dengan pemberian sumberdaya buatan tidak mengatasi keterbatasan sumberdaya
keuangan dan manusia yang dihadapi oleh nelayan miskin. Tiga studi kasus
menunjukkan bahwa aspek komponen sosial dan manusia dalam penanggulangan
kemiskinan juga signifikan. Aspek-aspek koherensi kelompok, transparansi
kepemimpinan, advokasi, administrasi, akuntabilitas dan dukungan kelembagaan
tanpa henti adalah unsur-unsur kunci untuk menanggulangi kemiskinan di
masyarakat pesisir. Sayangnya unsur-unsur itu tidak dapat terlihat, tidak terjadi
secara instan, dan hanya memberikan sedikit dokumentasi dengan pemberian
jaring atau mesin.
Dalam kesimpulan penelitian ini (bab 8) empat rute yang berpotensi menjadi jalan
keluar dari kemiskinan untuk nelayan dijelaskan bersama dengan rekomendasi
bagaimana program peningkatan mata pencaharian masa depan bisa lebih dapat
memenuhi kebutuhan dan kendala dari masyarakat miskin.

SUMMARY
RICHARD STANFORD. Matchmaking projects with communities: Analysing

whether livelihood improvement initiatives meet the needs and constraints of poor
fishers in West Sumatra (Proyek-proyek terkait dengan kebutuhan masyarakat
nelayan: Apakah kegiatan peningkatan mata pencaharian sesuai dengan kebutuhan
nelayan miskin di Sumatra Barat?). Dibimbing oleh JOHN HALUAN, BUDY
WIRYAWAN, DIETRIECH BENGEN and RUDI FEBRIAMANSYAH.
Despite a fast growing economy, many Indonesians still live in poverty or
are vulnerable to falling into poverty. Fishing is an economic sector closely
associated with poverty and there has been a range of initiatives aimed at
improving livelihoods and reducing poverty amongst poor fishers. Concerns
remain that these initiatives have failed to target the right people in the right way.
This research attempts to address that concern and proceeds through three logical
stages.
Firstly in chapter 4, two indices are developed that map fishing
dependency and poverty at multiple spatial scales. Using census data of
employment and poverty across all economic sectors, fishing poverty is compared
with poverty in other sectors using a Kendall-Tau correlation matrix to examine if
‘fishery truly rhymes with poverty’ using empirical data. This stage identified the
following trends; 1) that the number of poor fishers is increasing and that they are
predominantly labourers rather than boat owners, 2) fishing together with crop
farming are the two sectors in which incidences of poverty are greatest, 3) there is

no significant correlation between high fishing dependency and high proportions
of poverty amongst fishers, 4) there is a significant correlation between
agricultural dependence and total percentage poverty in coastal communities and
5) there are inverse correlations between the strength of other economic sectors
and poverty in the agricultural sector. This methodology has important
applications for the ongoing implementation of the national marine spatial
planning program.
Secondly in chapter 5, an analysis of interviews in twenty-five fishing
communities in West Sumatra identified thirty one enabling and constraining
factors, which were grouped according to six asset categories; natural, human,
social, financial, physical and institutional. In chapter 6, forty three attributes were
developed to score households on a scale of bad to good for each of these factors.
Two fishing communities were selected on the basis of a cluster analysis, Sungai
Pinang, a small, isolated community with a high dependency on traditional
methods, and Ampang Pulai, a port with larger vessels and good connectivity to
markets. Interviews conducted with 151 households from these communities were
analysed using multi-dimensional scaling. These households incorporated both
owners and crew from four sectors of the fishing industry, bagan, payang, sampan
and pukat tepi, as well as a fifth ‘other’ group of coastal residents. Vessel owners
possess higher physical, financial and human capital than crew members but there

was no difference in the natural, social and institutional fields. Institutional
support across all sectors scored poorly.
Thirdly in chapter 7, secondary data sources on the types of livelihood
improvement initiatives in coastal communities were collated and analysed using
descriptive statistics and three cases studies were selected to demonstrate the

social, economic and institutional lessons learned that point both to best and worst
practice.
Empowerment programs targeted at the coastal poor by the DKP between
2005-2009 emphasized improving physical capital through providing fishing gear,
machines and processing equipment. All of these initiatives could be valuable for
small-boat owners but many of them would not benefit labourers. The
contemporary program GPEMP had a greater proportion of non-fishing alternative
livelihoods that could potentially help labourers, but still demonstrated an ongoing
bias towards physical capital interventions in the fishing sector. This approach of
bridging the gap between crew members and owners by providing physical capital
fails to address the underlying financial and human capital limitations that poor
fisher face. The three case studies demonstrate that aspects of leadership, trust,
advocacy, administration, accountability and ongoing institutional support are key
elements of successful livelihood improvement in coastal communities.
The research concludes with an explanation of the main routes out of
poverty for a poor fisher and recommendations for how future livelihood
improvement programs can better address the needs and constraints of the poor
(chapter 8).

Penguji Ujian Tertutup :

Prof. Dr. Ir. Ari Purbayanto, M.Sc
Dr. Ir. Sugeng H. Wisudo, M.Si

Penguji Ujian Terbuka :

Dr. Ir. Victor PH Nikijuluw, M.Sc
Dr. Ir. Gelwynn Yusuf, M.Sc

LEGALIZATION

Title of Dissertation : Matchmaking Projects with Communities: Analysing
whether Livelihood Improvement Initiatives Meet the
Needs and Constraints of Poor Fishers in West Sumatra
Name

: Richard James Stanford

NIM

: C462108012

Approved by
Supervisory Committee

Prof. Dr. Ir. John Haluan M.Sc
Head of committee

Dr. Ir. Budy Wiryawan M.Sc
Member of committee

Prof. Dr. Ir. Dietriech G. Bengen DEA
Member of committee

Prof. Dr. Ir. Rudi Febriamansyah, M.Sc.
Member of committee

Authorized by

Major for Fisheries Systems and Modelling,

The Dean of Graduate School

Chairman

Prof. Dr. Ir. Mulyono S. Baskoro, M.Sc.

rd

Dr. Ir. Dahrul Syah, M.Sc, Agr

Date of Opened Examination: 23 June 2014, Date of Graduation:

© Copyright Bogor Agricultural University, 2014
This copyright protected by law
Any unauthorized quotation of part or all of this dissertation without referencing
the author and institution is prohibited. Reproduction of this material is only
permitted for research and education purposes and must not undermine the rights
of Bogor Agricultural University.

It is forbidden to publish or copy this dissertation in any form without prior
permission from Bogor Agricultural University.

MATCHMAKING PROJECTS WITH COMMUNITIES:
ANALYSING WHETHEER LIVELIHOOD IMPROVEMENT
INITIATIVES MEET THE NEEDS AND CONSTRAINTS OF POOR
FISHERS IN WEST SUMATRA

RICHARD STANFORD

Dissertation
As one of the requirements of the
PhD program in the
Major for Fisheries Systems and Modelling

GRADUATE SCHOOL
BOGOR AGRICULTURAL UNIVERSITY
BOGOR
2014

FOREWORD

If I rise on the wings of the dawn, if I settle on the far side of the sea, even there
your hand will guide me, your right hand will hold me fast.
Psalm (Zabur) 139: 9-10

Thanks be to God and to Jesus Christ (Isa al Masih) because, even during these
years when we have lived on the 'far side of the sea', He has guided us, held us
and been with us always just as He promised He would be. Truly He is faithful
and kind.

The author would like to take this opportunity to express his gratitude to:

1. The supervisory committee headed by Prof. Dr. Ir. John Haluan M.Sc and
including Dr. Ir. Budy Wiryawan M.Sc, Prof. Dr. Ir. Dietriech G. Bengen
DEA and Prof. Dr. Ir. Rudi Febriamansyah, M.Sc. Thank you for your
patience and guidance during these years.
2. Community leaders, fishers and their families in the many coastal
communities of West Sumatra who have been so hospitable in welcoming,
feeding and teaching the author about their livelihoods.
3. Staff at several government departments in West Sumatra including the
provincial and regional offices of the Department of Fisheries, Planning and
Development Department (BAPPEDA) and the Centre for Statistics (BPS).
4. Administrative staff at both Bogor Agricultural University and the University
of Andalas as they smoothed the process of studying for a PhD outside of my
home country.
5. Dr. Victor P. H Nikijuluw, Dr. Luky Adrianto, Dr. Alfian Zein, Dr. Arlius, Dr.
Bob Pomeroy and Dr. Connor Bailey for providing constructive feedback at
the early stages of forming this research.
6. My lovely wife Zoe, and our children Jude and Jemima, who have shared in
the joys and struggles of this PhD. Thank you for your unending support.

BIOGRAPHY

The author was born in Bristol, England on the 20th August 1979 as the
third of four children to Robert and Judith Stanford. He married Zoe Stanford in
2003 and has been blessed with two children, Jude and Jemima Stanford.
During 1997-2000 he studied for a BSc (Hons.) in Oceanography and
Marine Biology at the University of Southampton, England. From 2000-2002 he
took his MSc in Natural Resource Management with a specialization in Fisheries
at the University of British Columbia, Canada.
Returning to the UK in 2002, the author worked as an Environmental
Scientist with the Associated British Ports research department. Between 2003
and 2007 the author worked as a Marine Policy Officer for the conservation
organisation Devon Wildlife Trust on a variety of stakeholder initiatives related to
sustainable fisheries and marine protected areas.
In 2008 the author moved to Indonesia where, together with his family, he
has enjoyed living on Java, Sulawesi and Sumatra and researching fishing
communities amongst the Bajau and Minangkabau peoples. The author has been
active in fisheries, poverty and conservation conferences and seminars in
Indonesia. He is passionate about supporting small-scale fishing families to
overcome poverty and live sustainably.
Parts of this dissertation have already been published as follows:

Stanford RJ, Wiryawan B, Bengen D, Febriamansyah R, Haluan J. 2012.
Identification of poor fishing-dependent communities in mainland West
Sumatra. Buletin PSP 20(1): 15-34.
Stanford RJ, Wiryawan B, Bengen D, Febriamansyah R, Haluan J. 2013.
Exploring fisheries dependency and its relationship to poverty: A case study of
West Sumatra, Indonesia. Ocean and Coastal Management 84:140-152.
Stanford RJ, Wiryawan B, Bengen D, Febriamansyah R, Haluan J. 2014a.
Improving livelihoods in fishing communities of West Sumatra: More than just
boats and machines. Marine Policy 45:16-25.

Stanford RJ, Wiryawan B, Bengen D, Febriamansyah R, Haluan J. 2014b.
Enabling and constraining factors in the livelihoods of poor fishers in West
Sumatra,

Indonesia.

DOI: 10.1002/jid.2990.

Journal

of

International

Development.

i

TABLE OF CONTENTS

LIST OF TABLES ..................................................................................................................... v
LIST OF FIGURES .................................................................................................................. vi
LIST OF APPENDICES ..........................................................................................................vii
1

INTRODUCTION .............................................................................................................. 1
1.1 Background ................................................................................................................................. 1
1.2 Research Problem ....................................................................................................................... 4
1.3 Research Aim and Objectives ................................................................................................... 12
1.4 Research framework ................................................................................................................. 13
1.5 Research Contribution............................................................................................................... 15

2 LITERATURE REVIEW ..................................................................................................... 17
2.1 Poverty and Small-scale Fisheries ............................................................................................. 17
2.1.1 Causes of Poverty............................................................................................................... 17
2.1.2 Wealth and Welfare Approaches to Fisheries Management ............................................... 18
2.1.3 Trade-offs in Fisheries Policy ............................................................................................ 19
2.2 Co-management and Community Based Resource Management .............................................. 20
2.2.1 Why Co-management? ....................................................................................................... 20
2.2.2 Components of Co-management ........................................................................................ 22
2.2.3 Co-management in Indonesia ............................................................................................. 24
2.2.4 Reviews of Coastal CBRM Programs and Projects ............................................................ 26
2.3 Livelihoods and Diversification ................................................................................................ 28
2.3.1 Livelihoods Overview ........................................................................................................ 28
2.3.2 Diversification and Alternative Livelihoods....................................................................... 32
2.3.3 Behaviour of Fishers .......................................................................................................... 33
2.3.4 Aquaculture – Farming the Reef ........................................................................................ 34
2.4 Critical Success Factors in Coastal Initiatives ........................................................................... 37
2.4.1 Analyses of Factors Controlling Project Success ............................................................... 37
2.4.2 Perception of Success ......................................................................................................... 41

ii
2.4.3 Future Priorities for Coastal Management Initiatives ......................................................... 41

3

RESEARCH METHODOLOGY....................................................................................... 43
3.1 Overview of Proposed Research ............................................................................................... 43
3.2 Location and Place of Research ................................................................................................ 45
3.3 Data Collection ......................................................................................................................... 45
3.3.1 Objective 1: Provincial-wide review of fisheries dependence and poverty. ....................... 45
3.3.2 Objective 2: Livelihoods and poverty analysis ................................................................... 46
3.3.3 Objective 3: Evaluation of existing livelihoods interventions. ........................................... 47
3.4 Data Analysis ............................................................................................................................ 48
3.4.1 Objective 1: Provincial Review .......................................................................................... 48
3.4.2 Objective 2: Sustainable Livelihoods Approach ................................................................ 48
3.4.3 Objective 3: Project Evaluation .......................................................................................... 49

4

FISHING DEPENDENCY AND POVERTY IN WEST SUMATRA ............................ 50
4.1 Introduction ............................................................................................................................... 50
4.2 Method ...................................................................................................................................... 52
4.2.1 Collation of Secondary Data .............................................................................................. 53
4.2.2 Verification ........................................................................................................................ 53
4.2.3 Analysis ............................................................................................................................. 54
4.2.4 Interviews........................................................................................................................... 57
4.3 Results and Discussion.............................................................................................................. 58
4.3.1 Fisheries in West Sumatra overview .................................................................................. 58
4.3.2 Where are the fishing dependent areas in West Sumatra? .................................................. 61
4.3.3 What is the relationship between Fisheries dependence and poverty? ................................ 64
4.3.4 How is poverty in the fisheries sector related to poverty in other economic sectors? ......... 66
4.4 Conclusion ................................................................................................................................ 71

5

DETERMINING ENABLING AND CONSTRAINING FACTORS IN THE

LIVELIHOODS OF POOR FISHERS IN WEST SUMATRA .............................................. 73
5.1 Introduction ............................................................................................................................... 73
5.2 Method ...................................................................................................................................... 74

iii
5.3 Results and Discussion.............................................................................................................. 76
5.3.1 Who are the fishing poor? .................................................................................................. 76
5.3.2 Enabling and constraining factors ...................................................................................... 78
5.4 Conclusion ................................................................................................................................ 88

6

EVALUATING LIVELIHOOD RESILIENCE OF FISHING HOUSEHOLDS IN WEST

SUMATRA .............................................................................................................................. 89
6.1 Introduction ............................................................................................................................... 89
6.2 Method ...................................................................................................................................... 90
6.3 Results and Discussion.............................................................................................................. 93
6.3.1 Bagan ................................................................................................................................. 93
6.3.2 Payang.............................................................................................................................. 103
6.3.4 Beach seine (pukat tepi) ................................................................................................... 115
6.3.5 Miscellaneous group ........................................................................................................ 121
6.3.6 Comparison between all sectors ....................................................................................... 127
6.3.7 Comparison Between Villages. ........................................................................................ 130
6.4 Conclusion .............................................................................................................................. 134

7

LIVELIHOOD INTERVENTIONS CONDUCTED IN FISHING COMMUNITIES IN

WEST SUMATRA ................................................................................................................ 137
7.1 Introduction ............................................................................................................................. 137
7.2 Method .................................................................................................................................... 139
7.2.1 Identifying existing livelihood improvement interventions .............................................. 139
7.2.2 Case studies:..................................................................................................................... 140
7.3 Results and Discussion............................................................................................................ 141
7.3.1 Livelihood interventions in fishing communities in West Sumatra .................................. 141
7.3.2 Case studies:..................................................................................................................... 147
7.4 Conclusion .............................................................................................................................. 157

8

CONCLUSION AND RECOMMENDATIONS ........................................................... 159
8.1 A new way ahead .................................................................................................................... 159
8.1.1 Social capital .................................................................................................................... 159

iv
8.1.2 Natural capital .................................................................................................................. 163
8.1.3 Human capital .................................................................................................................. 164
8.1.4 Financial capital ............................................................................................................... 167
8.1.5 Physical capital ................................................................................................................ 168
8.1.6 Institutional capital ........................................................................................................... 170
8.2 Pathways out of poverty ...................................................................................................... 172

9

REFERENCES ........................................................................................................... 177

APPENDICES ....................................................................................................................... 194

v

LIST OF TABLES

2.1

Factors influencing coastal community project success ................................................. 40

3.1

Location and time of proposed research ......................................................................... 45

4.1

Relationships between poverty and dependency across all economic sectors ............... 69

5.1

Natural enabling/inhibiting livelihood factors ................................................................ 82

5.2

Human enabling/inhibiting livelihood factors ................................................................ 83

5.3

Physical enabling/inhibiting livelihood factors .............................................................. 84

5.4

Financial enabling/inhibiting livelihood factors ............................................................. 85

5.5

Social enabling/inhibiting livelihood factors .................................................................. 86

5.6

Institutional enabling/inhibiting livelihood factors ........................................................ 87

7.1

Livelihood interventions conducted by the Provincial DKP ........................................ 143

7.2

Livelihood interventions conducted by the program GPEMP...................................... 146

8.1

Summary of problems and proposed solutions in livelihood programs. ...................... 162

vi

LIST OF FIGURES

1.1

The problems and solutions for small-scale fishing communities ................................... 6

1.2

Proposed research framework ........................................................................................ 14

2.1

The sustainable livelihoods framework .......................................................................... 28

2.2

Three approaches to livelihood diversification .............................................................. 32

3.1

Research framework ....................................................................................................... 44

4.1

Catch value and poverty for each district ....................................................................... 60

4.2

Fishing dependent sub-districts in West Sumatra........................................................... 62

4.3

Fishing dependency and poverty amongst fishers in West Sumatra .............................. 64

5.1

Interview locations ......................................................................................................... 75

5.2

Sectors of the fishing industry the poor operate in ......................................................... 77

6.1

Bagan scores from MDS analysis ................................................................................... 94

6.2

Leverage for the bagan sector....................................................................................... 102

6.3

Payang scores from MDS analysis ............................................................................... 104

6.4

Leverage for the payang sector ..................................................................................... 108

6.5

Sampan scores from MDS analysis .............................................................................. 110

6.6

Leverage by the sampan sector ..................................................................................... 114

6.7

Beach seine scores from MDS analysis ........................................................................ 117

6.8

Leverage by the beach seine sector .............................................................................. 120

6.9

'Other' scores from MDS analysis ................................................................................ 122

6.10 Leverage by the 'other' seine sector .............................................................................. 126
6.11 Mean livelihood resilience scores for all fishing sectors .............................................. 127
6.12 Comparison between Sungai Pinang and Ampang Pulai ............................................. 131
7.1

Locations of the three fishing groups selected for the case studies .............................. 140

vii

LIST OF APPENDICES

1

Clustering methodology used to select research locations ............................................. 193

2

Survey used in the field................................................................................................... 200

3

Estimating uncertainty in interview responses ............................................................... 207

viii

LIST OF ABBREVIATIONS AND ACRONYMS

BAPPEDA

Badan Perencanaan Pembangunan Daerah (Planning and Development
Agency)

BPS

Badan Pusat Statistik (Centre for Statistics)

CBRM

Community Based Resource Management

DKP

Dinas Kelautan dan Perikanan (Fisheries and Marine Agency)

GPEMP

Gerakan Pensejahteraan Ekonomi Masyarakat Pesisir (Movement for
Improving the Welfare of Coastal Communities)

ICM

Integrated Coastal Management

IDT

Inpres Desa Tertinggal (Isolated Villages Program)

KUB

Kelompok Usaha Bersama (Self-help group)

KUK

Kredit Usaha Kecil

MCRMP

Marine and Coastal Resources Management Project

MDS

Multi-Dimensional Scaling

MSP

Marine Spatial Planning

PNPM

Program Nasional Pemberdayaan Masyarakat (National Community
Empowerment Program)

P4K

Program Pembinaan dan Peningkatan Petani dan Nelayan Kecil
(Guidance and Impovement Program for Farmers and Small Fishers)

RTM

Rumah Tangga Miskin (Poor households)

SLA

Sustainable Livelihoods Approach

1

1

INTRODUCTION

1.1 Background
95 % of the world’s fishers are small-scale operators and more than 90 %
of these are found in developing countries (FAO, 2007). In Indonesia
approximately 2.2 million people are employed directly as fishers, the majority of
them using hook and line gear, whose average family gross income is Rp. 400,000
(US $40) per month (Nikijuluw, 2002; FAO, 2009). Governments throughout SE
Asia are aware of the plight of these families and there have been concerted
efforts to help them (Bailey and Pomeroy, 1996; Seilert, 2002; Satria and
Matsuda, 2004). Traditionally, this help has been in the form of capital investment
(i.e. motorisation, larger boats/nets) that increased catching efficiency and enabled
offshore stocks to be targeted (Bailey, 1993; Dey et al., 2008). Smith (1979)
observed, some 30 years previously, that this policy could only be a short term
solution and one that generally benefited the wealthier commercial fishers with
existing capital equipment. Bailey and Pomeroy (1996) go further, arguing that
these programmes may have inadvertently increased fishing effort in coastal areas
and reduced occupational diversity forcing fishers down a blind alley. Catching
more fish more efficiently, may result in increased export revenue but it rarely
results in employment opportunities and better welfare for the majority of smallscale fishers (Bailey and Jentoft, 1990; Kusnadi, 2002). Collier et al. (1977 cited
in Smith, 1979) give a striking example of this from the north coast of Java. In
1974 a motorised boat using traditional gear and employing 22 crew members
caught the same volume of fish as 41 sailboats employing 287 people. This
process of mechanisation has been repeated throughout Indonesia with the newer
vessels being deployed alongside increasing numbers of traditional small-scale
fishers. Heazle and Butcher (2007) report that in 1960 1,500 of the 170,000
fishing boats in Indonesia had any kind of motor but by 2002, 5300 out of a total
of 550,000 vessels could be described as of industrial scale. They argue that while
still desirable enough to attract foreign vessels, “many Indonesian fish stocks have
been severely depleted”.
Within the fisheries economy there are three ways to increase returns; 1)
catch more fish, 2) lower costs or 3) achieve higher prices. Bailey and Jentoft

2

(1990) argue that the real hope for fishing communities lies not within the
fisheries economy but in improving economic opportunities outside of the fishery.
The Indonesian government also recognises this need with fisheries Law 31/2004
focused on alternative livelihoods and income generation (Christie et al., 2005).
These alternative livelihoods1 may be marine based such as harvesting seaweed,
mariculture of finfish/shellfish and eco-tourism, or one of many unrelated
opportunities such as chicken and duck breeding (Anon, 2005). In response to the
2004 Asian tsunami, Pauly (2005) argues that fishing boats should not be rebuilt
but fishers taught to “repair bikes, sewing machines and water pumps”. The
primary aim of these alternative livelihoods is to provide a means of income
outside of the fishery but they are also typically intended to take pressure off
fishing stocks, move fishers away from destructive fishing practises and reduce
the vulnerability of coastal communities by increasing economic diversity
(Sievanen et al., 2005).
As an archipelago nation Indonesia has enormous aquatic resources and
the Ministry of Marine Affairs and Fisheries’ (KKP) vision is for Indonesian
fisheries and aquaculture to be competitive and sustainable, for the welfare of
society KKP (2014). While revenue increases can be made through increased
capture efficiency as well as post-capture technology and processing, the KKP
clearly sees an increase in productivity through aquaculture as driving the mission
statement of “improving the welfare of marine and fisheries societies” (Anon,
2009). Indeed, with an expansive coastal zone Indonesia has tremendous potential
for marine and freshwater based aquaculture but one crucial aspect of realising
this potential is marine spatial planning (MSP). Following pilot projects in North
Sulawesi and Kalimantan there is currently a process of mandatory MSP

1

Generally “alternative livelihoods” implies a switch from one full-time occupation such as

fishing to another, such as farming. “Supplementary livelihoods” implies that a person will
continue in their normal occupation but will add another string to their bow such as a fishers
adding seaweed farming to his normal activities. Occupational diversity is a reality of many
coastal communities and references to alternative livelihoods in this thesis include supplementary
livelihoods or side jobs (Indonesian - usaha sampingan).

3
application throughout Indonesia in response to UU 2007 2. The aim is for each
region (Kabupaten) to produce a geographic information system (GIS) map
showing which activities are permissible and suitable in different parts of their
jurisdiction. For a number of possible activities, including different forms of
aquaculture and tourism, matrices of suitability have been developed (D. Bengen,
pers. comm., 2010.) which can be used by marine spatial planners to identify the
plausibility of these activities. These maps will clarify and streamline the MSP
process and reduce conflict from competing activities. However the maps are only
the first step in unlocking the potential of these regions. They will indicate which
activities are possible and permissible but further work is necessary to ascertain
firstly, how physically and technically this potential can be realised and secondly,
how to ensure that the benefits accrue to entire communities and not a selected
elite that already possess access to knowledge, financial capital and markets.
In reality, most regional fisheries managers as well as the fishers
themselves already know which alternative livelihoods could be developed in
particular locations. Many of the ideal locations for aquaculture and tourism have
previously been snapped up by private investors but many more exist that with
targeted investment and empowerment of local communities have the potential to
improve the welfare of these communities. Such an example exists in Bali where
the Gondol Research Institute for Mariculture was the catalyst for a burgeoning
industry of backyard hatcheries (see literature review below and Siar et al., 2002).
In West Sumatra (West Sumatra) many fishers still live below the poverty
line (Zen et al., 2002) and the traditional priority in West Sumatra for small-scale
fishers has been to increase productivity from capture fisheries by the provision of
boats, nets and machines. In personal communication with the author a number of
small-scale fishers in West Sumatra have expressed gratitude for the grants they
received to purchase machines for their boats but grave concerns about the future
of capture fisheries in the face of competition from larger vessels and declining
stocks. Desniarti’s (2007) analysis of pelagic fisheries in West Sumatra adds

2

UU refers to Undang-Undang an Indonesian law.

4

weight to their concerns by demonstrating the overcapacity that already exists in
the fishery. In response to this, there have been livelihood diversification
initiatives originating from private investors and the government including
mangrove crab ranching, shrimp, grouper and seaweed farming. At the time of
writing small-scale catfish farming using tarpaulin constructed ponds is being
implemented in some coastal communities and milkfish aquaculture as a source of
bait for the tuna fishery has started within the last year.

1.2 Research Problem
Small-scale fisheries have the potential to generate significant profits,
prove resilient to shocks and crises, provide employment, alleviate poverty and
meaningfully contribute to food security for millions of people (Allison and Ellis,
2001; Andrew et al., 2007; FAO, 2003; Kent, 1997; Thorpe et al., 2006). Yet, they
are often referred to in tandem with poverty (Cunningham, 1993; Macfadyen and
Corcoran, 2002). The factors contributing to a low standard of living amongst
communities dependent on small-scale fisheries, were clarified by Smith (1979),
and are summarised in Figure 1.1A and described below.
Limited fisheries resources is comprised of two components. The first is
simply “too many fishers chasing too few fish make too little income” (Sumaila,
2008). Typically this is a function of overcapacity and results in overfishing.
Small-scale fisheries can be a safety valve or last resort for the poor and the
combination of large numbers of small-scale fisheries coupled with efficient
larger vessels concentrated in a narrow coastline leads to depletion of stocks (e.g.
Collier et al., 1977; Kurien, 1993). Besides overfishing, degradation of the marine
and coastal environment through destructive fishing methods, loss of mangroves
and pollution of nursery grounds can lead to a reduction in the ecosystem health
and capacity for the production of exploitable resources (Copes, 1989). The
second reason resources are limited relates to governance, equity and
technological capacity. Biologically, the stocks can be exploited below the
maximum sustainable yield (MSY) but be unavailable to small-scale fishers
because they do not have the necessary rights or technological capacity to access
them (e.g. Islam, 2003).

5

Lack of market power also incorporates two aspects. Firstly, small-scale
fishers, unlike farmers, are unable to store their harvest and wait until the price is
good. In tropical climates where the catch is often landed at many different points
along the beach fishers are racing against the clock to sell the catch before it starts
to rot. Depending on the location this can provide conditions for middlemen to
prosper. It is important to emphasise that these middlemen have a valuable role in
providing loans, financial security for the families of fishers while they are at sea
and a guarantee that they will buy the fish. They may even own the boat and
fishing gear and have provided the fuel to enable the fisherman to go to sea.
However, as Smith (1979) poin