The Basic Concepts Correlating mariculture and household income generation: a case of panggang island initiative
received 200 fing erlings as the project’s loan. After nine months, he successfully
cultured the grouper and sold his harvest. Consequently, he have to pay the Rp2.6 million to CCMRS-IPB. If he paid the loan soon after he sold his production, then
he will get extra 200 fingerlings for the next period. Now, he had up-graded his membership to “Silver” class and receives 400 fingerlings in total for his second
year. Every time one is successful conducting his mariculture activity and repay the loan on time,
the project will give “award” through an up-grade of his membership, e.g. from Biru to Silver or Silver to Gold. The advantage of this
membership up-grade is to provide additional fingerlings as the incentive for work harder and honest.
This project also gives dispensation for its member by giving a possibility to repay the loan in installment method especially for those who have any urgent
matters, such as sickness of family member and children wedding. In an extreme case, one may cheat by confessing that his fish were dead or stolen in order to get
dispensation to eliminate his responsibility to pay the loan. If he is convicted lying, then he will be punished by not getting any fingerlings on the next period.
This irresponsible member usually will discontinue his membership. In this case, internal group monitoring is applied.
Besides providing fingerling, CCMRS-IPB also provides loan in a form of mariculture production means, such as nets, drums and feed, on limited number.
It distribution is based on sea farming committee’s decision. The mechanism of
repayment method is the same with fingerling’s loan.
In the fourth activity, connecting sea farming member to the market, CCMRS-IPB invited buyer and trader from Muara Angke, Jakarta. This is not
really effective because most of members have their own buyer. In practice, the member will sold their production directly to the buyer or middlemen who came
to Panggang Island. As an alternative, they will send their production directly to Muara Angke. The first option is preferable compared to the second option
because it is less costly and easier.
In the fifth activity, CCMRS-IPB provides field facilitators whom are responsible for giving assistancecounseling of any technical and non-technical
issues and also managing the loan. Only if the member faced any serious problems, such as diseases in larger scale, the dedicated aquaculture expert from
CCMRS-IPB would come and check to make any necessary treatment.
Restocking is another activity which should be attached to sea farming project because it is the mean to reach its second objective, conserving the marine
ecosystem through juvenile release. Formally, the agreement between local government, CCMRS-IPB, and sea farming members regulate that every member
should contribute 5 percent from their production for restocking purpose. In practice, the regulation cannot be successfully implemented yet because of the
lack of fingerling stock. Thus, no official restocking activity conducted by sea farming member up to now. There are two restocking activities in 2010 which
used fund from the Ministry of Environment, Republic of Indonesia and CNOOC
10
. In summary, the project description of sea farming is presented on Table 5.
10
CNOOC China National Offshore Oil Corporation is Chinese offshore oil multinational company and its involvement in restocking activity is part of its CSR’s Corporate Social Responsibilty program.
Table 5 Project Description of Sea Farming in Panggang Island
Items Explanation
Program
Sea farming is a project to create sustainable shallow marine resource management system which uses maricultureas a base-activity.
Financing
Local government fund Kepulauan Seribu Administrative Regency, DKI Jakarta Province.
Partnership
Local government as the main sponsor and CCMRS-IPB as the project manager.
Target Groups
People who work in SSF such as fishermen and small-scale fish farmers. Other occupations are additional.
Objectives Goals
a. Improving local community’s welfare; and
b. Conserving marine ecosystem.
Activities
a. Setting up the regulation, institution and infrastructure;
b. Providing knowledge and skill-based training;
c. Providing fingerling;
d. Connecting sea farming member to the market; and
e. Providing counseling particularly for handling any disease case.
Source: CCMRS-IPB 2006, 2007
Research Operational Framework
The increasing human population and the demand of fisheries products have pushed the increase of global fish supply. This market pressure has exploited the
natural resources which caused overfishing and declining capture fisheries. To fulfill the gap between the demand and supply, aquaculture is one of the
alternative solutions to this problem.
There are many aquaculture projects that have been implemented in DCs and LDCs to fulfill the increasing demand of fisheries products, both for domestic
and export market. Besides fulfilling the demand, most of these projects are mainly aimed to improve some of crucial development indicators such as poverty
alleviation, food security and malnutrition, women empowerment, as well as environmental sustainability. In line with that, sea farming project in Panggang
Island, Kepulauan Seribu was implemented with two main goals which are
improving local community’s welfare and conserving marine ecosystem. This project was designed as co-management in fisheries management which involves
local government, local community, and other stakeholders. In this type of fisheries management, all parties are sharing their responsibilities in managing the
CPR.
In this study, there are two main objectives which are identifying the determinants of household participation in the project activities and depict the
projects contribution to poverty alleviation on household income based on quantitative analysis and descriptive analysis. Probit model was used to analyze
which factors that are determine participation in the project. On the first model estimation, sea farming participation SFP served as the dependent variable and
there are two groups of independent variables, i.e. household characteristics HC and household assets HA. The independent variables that categorized as
household characteristics are age, education, occupation, household size, and membership in non-sea farming organization organization member; whilst
independent variables that categorized as household assets ownership are television, mobile phone, and boat ownership.
OLS regression was used to analyze the impacts of the project in improving local community welfare and alleviating poverty through household income
generation. On the second model estimation, household income served as the dependent variable and there are three groups of independent variables, i.e.
household characteristics HC, household assets HA, and sea farming SF. Independent variables that categorized as household characteristics are age,
education, and membership in non-sea farming organization organization member; independent variables that categorized as household assets ownership
are mobile phone and boat ownership; and sea farming participation as independent variable in sea farming group. In addition to the OLS regression,
descriptive analysis was used to understand the benefits and constraints subjectively felt by the local community. Figure 7 illustrates the operational
framework of this study.
Figure 7 Research Operational Framework
Increasing Demand of Fisheries Products
Increasing Population
GAP Alternative Solution:
Aquaculture Co-management
SEA FARMING SF
Goal 1 of SF: Community
Poverty Alleviation and Social Welfare
Sustainable Fisheries Overfishing,
Resource Depletion
Market Pressure
Goal 2 of SF: Marine Environment
a. OLS Regression
b. Descriptive Analysis
Local Government
Local Community
CCMRS-IPB and Other Stakeholders
Restocking Activity OPPORTUNITIES
CHALLENGES
HH Assets Ownership HA Variables: TV, mobile phone, and boat ownership
HH Income Generation
Declining Capture Fisheries Productivity
The Determinants of SF Participation
HH Characteristics HC Variables: age, education, occupation, HH size,
and organization member
Probit Model
Mariculture Activity SF Impact
SF Impact Improve Knowledge and Skill
Mariculture and Business Increase Fish Stock
Ecotourism
Other Variables: HC: age, education, and organization
member HA: mobile phone and boat ownership
Remarks:
Research Area Interaction Line
Data Analysis Tools Research Objective
Independent Variables
SF Participation
3 RESEARCH METHOD
Study Site, Data, and Survey Design
The selection of the study site was purposeful rather than random. Panggang Island is selected as it is the only successful sea farming project in
Indonesia since other projects failed to be implemented due to the lack of local government support. The location of Panggang Island is shown on Figure 8. It is
located around 45 kilometers from Jakarta and it needs about 60 to 120 minutes by middle-speed boat. There are 13 islands in the Panggang Island village and
only two islands are populated with 5,123 inhabitants BPS KAKS 2011. The two populated islands are Pramuka Island as the capital of KAKS, and Panggang
Island as the most populated island in the region.
This study is categorized as ex-post study because the observation was conducted after the event is completed. Both primary and secondary data were
used in this study as described on Table 6. The primary data were based on a survey of rural coastal households in Panggang Island since all sea farming
members live on this island.
The author and enumerators administered the pretested structured questionnaire to sample household, which domiciled on three Rukun Warga RW
and 21 Rukun Tetangga RT
11
in Panggang Island. The survey was conducted on August 2012 and a total of 82 households were interviewed. It consists of 39 sea
farming members participants as the treatment group while the control group consists of 43 non-participants. However, there are only 77 households that are
11
RT and RW are two lowest zones under village level in Indonesia, but they do not included in the official division of Indonesian government administration.
Figure 8 Map of Panggang Island, Kepulauan Seribu Kelurahan Pulau Panggang 2010
composed of 34 and 43 households for treatment and control groups respectively used in the analysis because of missing values for some variables.
Two different approaches were used to select both groups. A stratified random sampling
12
technique was employed to select the treatment group as it used the list of sea farming members given
by project’s field facilitator and it selected only the active members. Meanwhile, a convenience sampling
13
technique was employed to select the control group as they are chosen because they are available when the enumerators visited them to their house
14
. The data and information drawn from this survey were used to analyze the factors that
influence sea farming project participation, project impacts to local community welfare, as well as benefits and constraints to the project.
Table 6 Types and Sources of Data
No Type of Data
Detail Source
1 Primary Data
a. Respondent characteristics e.g. age,
gender, origin, education, occupation, household size
b. Mariculture activity e.g. ownership,
experience, commodity, technique, cost of production, access to credit
c. Sea farming e.g. awareness,
membership information, sea farming benefits and constraints
d. Household assets ownership e.g.
housing ownership, water supply, sanitation, electronics, and vehicles
e. Household income and expenditure
Interview with treatment and control groups
2 Secondary Data
a. Demographic
b. Socioeconomic condition
c. Market potential
d. Others
a. CCMRS-IPB
b. Local government regency and
province c.
Ministry of Marine Affairs and Fisheries
d. BPS Central Agency of
Statistics e.
FAO f.
Others
Data Analysis
The first two research questions were analyzed using statistical techniques that are described with more detail on the next two sub-sections. The raw data
from the survey were processed using Microsoft Excel and Stata 11. In contrast with the first two research questions, benefits and constraints of sea farming for
local community were analyzed by using descriptive analysis. This part is intended to explore household
and local community’s points of view about sea farming project and its impacts. Along with the result of the first two quantitative
analyses, this part is expected to provide some valuable insights for concluding and formulating useful policy implications related to sea farming.
12
Stratified random sampling is categorized as random or probability sampling technique. It selects research participants based on their membership in a particular subgroup or stratum VanderStoep and Johnston 2009.
13
Convenience sampling is categorized as non-random or purposive sampling technique. It selects people who are available or convenient for the study VanderStoep and Johnston 2009.
14
Four persons were involved in the field research and each of person interviewed ten persons in three RW for control group, while selected sea farming participants have been determined using the list from CCMRS-
IPB’ field facilitator. It takes approximately 20-30 minutes, on average, to interview each respondent.