Government, regulations and standards

iterative approach to seaweed farm development occurred in Indonesia in concert with decentralization policies of the Government of Indonesia and traditional “adat” 10 forms of village government. Iterative cycling of information combined with reflexive action at the level of farmer groups brought about strong market linkages. These linkages, in turn, catalyzed rapid value chain initiation and extensive farm development. Seaweed farms are planted along seashores in locations that are common property of all Indonesians. With respect to property issues, the government has attempted to regulate allocation of farm sites and to issue permits or titles; however, communities of farmers have generally sorted out tenancy issues among themselves at the village level.

4.1 Government, regulations and standards

Indonesia is divided into administrative entities in accordance with the provisions of Article 18 of the country’s constitution. These entities are a manifestation of the decentralization principle, which has led to a transfer of responsibilities from the central government to regional governments. Decentralization policies support subnational entities as they regulate and manage their own affairs. The decentralization policy is complemented by a deconcentration policy that delegates responsibilities from the central government, governors, mayors and local offices of ministries to their officers at subnational levels. The government organizations that deal most directly with seaweed farmers are the BPPT, DKP and KUKM. Others include BAPPEDA and LIPI. For seaweed farmers at the village level, decentralization and deconcentration policies have enabled them to interact with government units close to their homes. With due oversight from the responsible government agencies, village-level governing bodies have been able to implement substantial management over the seashores adjacent to their villages. In most villages where seaweed farming is undertaken, it has evolved into a major economic activity. The management of seaweed farming rights and operations is therefore integrated into the fabric of village life. RAGS value chains in Indonesia are subject to two categories of regulations and standards that affect seaweed farmers, one on aquaculture in general and the other on carrageenanagar processing specifically Neish and Julianto, 2008. 11 Although standard protocols on aquaculture are at their inceptive stages, there are already some initiatives for RAGS value chain stakeholders, including: i EUREPGAP – Euro Retailer Produce Working Group EUREP on standards and procedures for the development of good aquaculture practices GAPs in conventional agriculture general regulations, control points and compliance criteria for integrated aquaculture assurance; ii FAO Guidelines for Aquaculture Certification under development at the time of writing; and iii quarantine protocols for tropical seaweeds such as those proposed by Sulu et al. 2004. For RAGS products, legally defined product standards must be met; failure to comply means that products cannot be sold to customers or jurisdictions where the standards apply. Important regulatory documents include: • European Union Member Organization: European Union standards for E407a Processed Eucheuma Seaweed and E407 Carrageenan; • JECFA – FAOWorld Health Organization: standards for Processed Eucheuma Seaweed and Carrageenan; • Codex FAO; • USFDA; • HACCP Hazard Analytical Control Points requirements; 10 The term “adat” is roughly translated as “custom” or “tradition”. 11 The online version of the document provides links to current documents and sources. 84 • ISO 9001: 2000, Quality Management System; • ISO 14001: 2004, Environmental Management System; • ISO 22000: 2005, Food Safety Management; • OHSAS 18001. It is recognized that many RAGS standards are “commercial standards” that are best left to definition between buyers and sellers. In such cases, standards should not be imposed but guidelines can be of use. Examples include: • PNCS – Philippine National Carrageenan Standard under development, which is proposed as the basis for a BIMP-EAGA harmonized standard; • CACGL 60-2006: Principle for Traceability Product Tracing as a Tool within a Food Inspection and Certification System; • CACGL 38-2001 Rev.1-2005: Guidelines for Generic Official Certificates Formats and the Production and Issuance of Certificate; • Basic manufacturing practices for raw-dried seaweed and semi-refined carrageenan from Eucheuma and Kappaphycus Seaplant.net Monograph no. HB2G 1008 V2 BMP. This is a starting point towards developing good manufacturing practice guidelines, especially for process steps that occur near seaweed sources and fall into the category of “post-harvest treatment” Neish, 2008b.

4.2 Business alliances