FAO Nias Information Bulletin 1

A STUDY OF THE FISHERIES POST-HARVEST AND MARKET SUPPLY

CHAINS IN NIAS ISLAND, NORTH SUMATERA PROVINCE, INDONESIA
INCLUDING FISHERIES CENSUS OF NIAS
(Post-Harvest Overview of Nias Island)
Final Report: 12 October 2010
By
VENKATESH SALAGRAMA
Chief Technical Advisor
AMINUDDIN SALKA
National Consultant

FAO FOOD AND AGRICULTURE ORGANISATION OF THE UNITED NATIONS

POST-HARVEST AND MARKET SYSTEMS FOR FISHERIES PRODUCTS IN NIAS ISLAND,
INDONESIA (GCP/INS/080/SPA)
0

Background to the Nias Post-Harvest Overview (PHO)

(to go on the back cover)
The Fisheries Post-Harvest and Marketing Systems for Fisheries Products Project in Nias,
Indonesia, implemented by the Food and Agriculture Organization of the United Nations
(FAO-UN), focuses on improving the livelihoods of the fishers and traders involved in postharvest and marketing activities in Nias Island. The post-harvest overview (PHO) of Nias is
undertaken as a starting point for the project in order to develop a good understanding of
the Nias post-harvest sector both to help the project development and, in the long term, to
inform and support the long-term planning and development processes on the island.
The Nias Post-Harvest Overview (PHO) is expected to provide: an understanding of how the
sector contributes to national development objectives; the characteristics of the supply,
processing and consumption of fish; the changes which are taking place in the subsector and
their impacts on the local livelihoods; and a description of the institutions and interventions
which support the subsector. The potential for improvement in each of these areas are
highlighted in order to facilitate implementing suitable interventions.
The first draft of the post-harvest overview was the outcome of work done in Nias during
October-November 2009, which involved (i) fieldwork by the project team as well as by the
teams consisting of the staff of the Dinas Kelautan dan Perikanan (DKP); (ii) interactions
with secondary stakeholders; and (iii) secondary data reviews. The conclusions of the study
were subsequently validated at a workshop in Gunungsitoli in November 2009, where a
range of key stakeholders from the government, NGOs and private sector participated. The
draft PHO in both English and Indonesian versions was further circulated widely to
obtain feedback. The revised PHO was used for programme development by the FAO
project, leading to interventions covering five critical areas in post-harvest and marketing in
Nias:

Policy guidance for setting directions for future post-harvest interventions;

Capacity building for strengthening institutional capacity to deal with post-harvest;
Technical interventions covering preservation, processing, transport and trade;
Community institution strengthening and,
Market development involving providing market information and exploring new
market opportunities for Nias fish products both locally and elsewhere.

The PHO has been revised constantly throughout the project life and the final revision of the
PHO was based on (i) the feedback from various quarters both within and beyond Nias; (ii)
fresh knowledge gained by the project in implementing its activities; and (iii) a fisheries
census undertaken by the project to supplement the PHO with quantitative data.

Acknowledgements
The study team gratefully acknowledges the cooperation received from the offices of the
Bupatis and the district administrations of Nias Regency, Nias Selatan, Nias Barat, and Nias
Utara in undertaking the fieldwork and data collection. Special thanks are due to the MMAF
and PUSKITA in Jakarta, the Heads of the Dinas Kelautan Dan Perikanan (Department of
Marine Affairs and Fisheries) in Nias as well as in Provinsi Sumatera Utara for their
unstinting support with manpower, data, and suggestions for improvement.
Grateful acknowledgement is made to the field research team, consisting of:
KHADARAININ ZEGA, DKP Nias
HEMIN GULO, DKP Nias
AFIFUDDIN M L, DKP Nias Barat
SALMAN DARLIN LAHAGU, DKP Nias Barat
ALMA P MARUNDURI, Facilitator
A YANI, HNSI
ETISMAN ZD, DKP Nias Selatan
SEFERIUS GERAMBA, DKP Nias Selatan
FAOMAGO HAREFA, Facilitator
LAZARUS, DKP Nias Selatan
Thanks are due to the experts, colleagues and friends who have provided feedback and
suggestions for improvement.
A substantial part of the information gathering for the final version of the PHO has been
facilitated by Mr Akhmad Rikhun, Technical Coordinator and Mr Ali Akbar, Training
Coordinator of the FAO-Nias project and their contribution is gratefully acknowledged. The
PHO has benefited immensely from the experience, insights and field knowledge provided
by the team of people trained by the project in various aspects of post-harvest fisheries and
who have been at the forefront of implementing the project activities.
Grateful thanks are due to Ms Malahayati Daulay, in charge of project administration in
Nias, who has been instrumental in organising the logistics for the PHO study throughout its
long gestation period.
Finally, the study team expresses its gratitude to the offices of FAOR-Jakarta, FAO-Rome
(FIPM) for all the support received throughout the PHO development process. Special
thanks are due to Dr Benni Sormin (AFAOR, FAO-INS) and Dr Iddya Karunasagar (LTO-FAO
Rome) for their constant and unfailing support.

VENKATESH SALAGRAMA
AMINUDDIN SALKA

CONTENTS
Executive Summary .............................................................................................................. 6
1. Introduction..................................................................................................................... 12
2. The Wider Context: Nias Island ...................................................................................... 14
3. Fisheries in Nias: The Socio-Economic Context .............................................................. 20
4. Fisheries in Nias: The Fish Production System ................................................................ 27
1. The marine environment........................................................................................... 27
2. The fishery resources................................................................................................ 27
3. Fishing craft ............................................................................................................. 28
4. Fishing gears ............................................................................................................ 29
5. Fishing operations .................................................................................................... 31
6. Fish production......................................................................................................... 32
7. Fish sale arrangements on the beach ......................................................................... 33
8. Sharing patterns in fishing ........................................................................................ 34
9. Fisheries Management .............................................................................................. 34
5. The market supply chains in Nias .................................................................................... 36
1. Local fresh fish supply.............................................................................................. 36
2. Distant (export) market supply.................................................................................. 45
3. Processed fish supply salted-dried fish................................................................... 54
4. Processed fish supply smoked fish ......................................................................... 60
6. The support systems in fisheries and post-harvest fisheries.............................................. 65
1. Infrastructure and service facilities in Nias fisheries ................................................. 65
2. Investment and credit................................................................................................ 71
3. Community organisations ......................................................................................... 73
4. Research, Training and Extension in Nias fisheries................................................... 74
5. Fisheries administration............................................................................................ 75
6. Policy and development plans................................................................................... 77
7. Market linkages with mainland ................................................................................. 77
8. The earthquake-2005 and the fisheries sector............................................................ 79
7. Discussion: Constraints for development of new fish supply chains in Nias..................... 81
8. Conclusion: Needed A Holistic Framework in Nias...................................................... 87
References .......................................................................................................................... 88
Annexure: Fisheries Census of Nias .................................................................................... 89

Map of Nias

Abbreviations used in the document

ADB
BAPPEDA
BOBP
BRI
BRR
DINKOP & UKM
DISPERINDAG
DKP
FAO
FLC
FRP
GRDP
HDPE
HNSI
LOA
PHO
PIB
t
TPI

Asian Development Bank

Badan Perencanaan Pembangunan Daerah (District Planning and Development
Agency)
Bay of Bengal Programme (of the FAO-UN)
Bank Rakyat Indonesia
Badan Rehabilitasi & Rekonstruksi (Aceh & Nias) Bureau of Rehabilitation and
Reconstruction (Aceh & Nias)
Dinas Koperasi dan Usaha Kecil Menengah (Department of Cooperation and Small
Business Development)
Dinas Perindustrian & Perdagangan (District Agency for Industrial and Trade Affairs)
Dinas Kelautan Dan Perikanan (Department of Marine Affairs and Fisheries)
Food and Agriculture Organization
Fish Landing Centre
Fibre-reinforced plastic
Gross Regional Domestic Product
High-density poly-ethylene
Himpunan Nelayan Seluruh Indonesia (Fishworkers Organisation of Indonesia)
Length Overall
Post-Harvest Overview
Permanent Ice Box
Tonnes
Tempat Pendaratan Ikan (Fish Landing Centre)

Currency conversions as on 11 November 2010(Source: www.XE.com)

US $1
European 1
UK 1

=
=
=

8,925 Indonesian Rupiah (Rp)

12,475 Indonesian Rupiah
14,235 Indonesian Rupiah

EXECUTIVE SUMMARY
Importance of fisheries to Nias
Nias is an island located at 0012 1032 N latitude and 970-980 E longitude in the Indian
Ocean. The island is about sixty nautical miles west of the west coast of North Sumatera
province of Indonesian archipelago. Nias has a land area of approximately 5320 km 2 covering
131 small islands (27 in Nias and 104 in Nias Selatan). The main island has a coast line of
about 400 km and a continental shelf area of about 5000 km.
Fisheries sector is very important to Nias for its contribution to the local economy,
livelihoods and food security. The sector contributes about 6.5 percent of the gross regional
domestic product (GRDP) and the contribution of fisheries to GRDP is increasing over the
years. Nias is a net exporter of fish, and exports account for about 30 percent of the total
production in the island (and more in terms of value). The per capita consumption of fish in
Nias is about 20 kg per annum, which is less than the provincial and national averages, but
there are indications that consumption of fish is growing steadily. Currently, about 60 percent
of the fish landed in Nias is consumed locally in fresh condition and another 10 percent is
consumed as dried/smoked product.
Besides food security, fisheries in Nias is also very important for its contribution to the local
livelihoods, especially of the poor. Altogether, about 6550 people, residing in 126 coastal
fishing villages, depend on marine fisheries in Nias1. Fisheries activities in Nias consist of
largely small-scale activities and the incomes generated from fishing and fish trade (including
exports) are just about sufficient for meeting the subsistence needs of the people. The average
incomes earned from fishing, post-harvest and ancillary activities in Nias are extremely low
and, with few exceptions, a majority of people involved in fisheries are poor. In fact, if not
for their dependence on alternate sources of income and non-monetised common property
resources, besides a strong family- and kinship-based tradition of social support, it is very
difficult to visualise a household surviving on the incomes from fishing alone. In many
fishing villages, public amenities such as fresh water, electricity supply, healthcare facilities,
and roads are poorly developed. Many categories of the poor involved in fisheries remain
invisible from a development perspective.
Fish production
Marine fish production accounts for over 99 percent of the fish produced in the island.
Activities such as seaweed culture and cage culture/fattening of grouper have yet to take root
and it will take some time before they can have an impact upon the fisheries economy in the
island. Nias will continue to depend on marine capture fisheries as the chief source of
income, livelihoods and food for some time to come.
Traditionally, fishing in Nias was by dugout canoes, which carried one or two people, and
were propelled by sails and oars. Although motorisation has taken root and bigger boats with
larger crews are increasing in numbers, fishing is still largely dominated by non-motorised

The numbers are from the Marine Fisheries Census undertaken by the FAO project and do not include data
from inland fishing villages.

dugout canoes ranging in length from 4-7 m, with or without outriggers. The total number of
boats in Nias is about 3500, of which 51 percent are non-motorised canoes and plank-built
boats, which have a limited capacity for handling bigger catches.
In spite of the existence of diverse fishing methods in Nias, hook-and-line remains the
predominant fishing method, accounting for 60 percent of the fishing gears used. This is in
keeping with the wide prevalence of canoe-fishing and the nature of fishing grounds (with
coralline formations). Together with signs of potential overfishing in the near-shore waters, it
is probably a good sign that hook-and-lines are the dominant gear, but from a marketing
perspective, this precludes scope for major surpluses in the fisheries that will be necessary for
exploring new market opportunities.
Over time, the motorised and mechanised crafts have increased their fishing time and this
would indicate an increased need for better handling and carrying ice onboard. That most of
the fishing operations are targeted towards export species indicates a growing need for use of
ice. While some boats carry ice regularly, a majority do not owing to a number of reasons, the
critical one being the lack of ready supply of ice and suitable iceboxes.
The marine fish production in Nias has been growing since 2003 and stood at 19060 tonnes in
2007, which would be higher if the intensive fishing operations by boats from the mainland
Indonesia and elsewhere and transfers at sea of important fish caught by local fishers to
mainland and foreign boats are taken into account. All the same, the quantum of the fish
catches is not really sizeable to encourage a major thrust towards export markets, especially
in a context that the catches consist of some 60 species landed by about 6000 boats along a
400 km coastline. Furthermore, the reported increase in catches is complemented by a
possibly bigger increase in the number of boats, indicating static or even falling catch rates.
Currently, there is no effective programme for fisheries management (there is a small
COREMAP programme for coral reef conservation) and any efforts to increase production
which is necessary to improve the post-harvest and market access must necessarily be
predicated upon the existence of a strong and well-functioning fisheries management system.
Fish supply chains
An assessment of the top-15 fish species landed in Nias shows that many of these have a
strong local demand and some of them (like tuna) receive a better value in the local markets.
All the same, it is customary to segregate the catches as export, local and cheap fish, with
groupers, snappers and other reef fish falling into the export category. The local fish mainly
consist of different medium-sized fish, with tuna predominating, while some export fish too
find their way into local markets because of poor quality or small volume landings. The
cheap fish mainly small pelagics (sardines, anchovies, hair tails) mostly caught in
beachseines and the lift-netters are used for drying. Fish like leatherjackets, which land in
glut during certain seasons, have a good demand in local and export markets, and by the
sheer volume of their landings also have the power to upset the market prices drastically. In
every case, glut landings are considered as much a problem as poor landings in Nias because
of the current market size, which in turn is determined by the existing infrastructure,
preservation and transport facilities. Fishers in some locations reportedly reduce the number
and duration of their operations when good landings occur so as to keep the market prices
from crashing. There are thus three major fish supply chains in Nias fisheries. These are:

1. Local fresh fish supply

This covers retail sale at markets (daily and weekly), bicycle fish sellers (men and women),
motorcycle traders (covering up to 30 km radius), and a few traders carrying fish for door-todoor sale by walk. Besides being the most important supply chain in Nias, accounting for 60
percent of the catches, it is also important from the local food security and livelihood
perspective. The supply chain has been showing a growing trend over the years.
Main post-harvest and market related problems in local fresh fish supply:

Spoilage of fish due to lack of appropriate insulated box for carrying on the bikes and
storage at the markets;
Lack of access to ice in rural areas (especially on the north and west coasts);
Distress sale of fish at the end of the day for lack of overnight preservation facilities (up
to 25 percent)
Lack of investment to withstand competition for fish at the landing centres
No access to lending from formal and informal sources

2. Distant market (export) supply

This covers both fresh and live fish, which are sent to Sibolga, Padang and Medan as
immediate destinations, finally reaching Jakarta and other urban centres within Indonesia as
well as Singapore, Malaysia and other countries; accounts for about 30 percent of the total
fish supplies. In terms of unit returns, this is the most lucrative fish supply chain. However,
entry into the activity requires high capital investment, strong market linkages and consistent
(and good) supply base, which are currently not available to most people. In the short term,
there is potential for marginal increases in quantity (and significant increase in value) through
better post-harvest systems; sizeable increases in quantity can however come only from big
increases in production. There is an increasing tendency among boat owners to target for
export fish, which might increase supplies. Cage culture for grouper and other reef fish shows
promise as a potential area for increasing exports from Nias, but this will require some time
and more work.
Main post-harvest and market problems in the distant (export) supply:

Spoilage along the supply chain, both at sea and in transit to the export traders shed
quality losses around 20 percent
Many intermediaries in the supply chain reducing the producers share in the value
Lack of investments for scaling up or for improvements
Lack of access to market information for the traders
Small size of supplies

3. Processed fish supply

This, rather small supply chain, accounting for about 10 percent of the supplies from Nias,
covers salted & dried fish, smoked fish and tiny quantities of boiled fish; Pulau Pulau Batu is
the main area of production in Nias, but large quantities of dried fish are also imported from
Sibolga and Padang.

Main post-harvest and market problems in the processed supply chain

Issues related to poor quality of the product usage of semi-spoiled fish in processing
Losses in production rains, infestation
Usage of hazardous material to reduce infestation; potential health hazards
Low efficiency (smoking)
Poor consumers, indicating low market incentive for scaling up or improving quality

Support systems in post-harvest and marketing

A. Infrastructure
Most fish landings take place on the beaches. New fish landing centres are coming up but the
fishers are constrained by various factors from making use of them. The lack of proper
systems for management and maintenance also affects their utility. Access to ice is a major
constraint in Nias fisheries. Currently, ice made with household freezers and small
refrigerators is the main source in the sector. Two ice plants of 10 t each have been set up
after the earthquake of 2005 but their viability is constrained by various factors and one of
them has already become inactive. There is a strong need for developing good distribution
systems to make the ice plants viable.
Modern boat building and repair facilities in Nias are poorly developed. Transport systems
within the island are not adequately developed for speedy transport of fish from the landing
centres to the markets or to the exporters sheds, leading to high costs as well as significant
quality losses. The sea connections with the mainland seem to be adequate to the current level
of fish supplies, but will need more widespread, regular and frequent coverage. Electricity
remains a major problem on the island and in the absence of immediate plans to improve the
electric power situation, at least 10 percent (and probably much more) of the total fish
landings on the island will continue to be spoiled.
B. Credit
Although Nias Island is well-supplied with banks, fisheries sector has not really been high in
their portfolio for two reasons: firstly, fisheries in Nias being a small-scale, low surplus,
activity, it is considered a high risk-low return proposition for investment; secondly, the
past experience of the fishers with bank financing has not been positive. However, the lack of
access to sustainable credit has serious implications for the producers as well as traders not
only to improve their activities but, increasingly, to sustain their current level of operations.
C. Community organisations
Existing community-based initiatives like cooperatives, groups and fishworkers organisations
function mainly to channel external support into fisheries, but remain dormant otherwise. The
need for strong grassroots level institutional development is very strong and is a major
requirement for any post-harvest and market related interventions.
D. Capacity building in fisheries
There are no local institutes for imparting knowledge, skills and awareness related to fisheries
and post-harvest to the fishers and to the officers of the DKP in Nias. The local fishers
9

capacity needs to improve their current activities are enormous and there is a clear need for
providing extensive exposure to the DKP staff on all aspects of post-harvest and marketing
(including the environmental, social and economic, dimensions), in order to develop viable
institutional mechanisms for undertaking capacity building activities in fishing communities.
E. Fisheries administration
The District Marine and Fisheries Agency (Dinas Kelautan Dan Perikanan) comes under the
jurisdiction of the Chief (Bupati) of the district and the Chief of the Provincial Fisheries
Service of the Province of North Sumatera. Four issues seem to be of concern relating to the
current system of organisation and functioning of the DKP: (i) lack of strong bonds between
the fishers and the DKP; (ii) lack of direction in terms of a systematic plan of action for Nias
fisheries development; (iii) frequent turnover of staff; and (iv) the system of lateral transfers
within the local administration (i.e., from one department to another) leading to low
institutional capacity to deal with fisheries-related matters.
F. The earthquake-2005 and the fisheries sector
Several UN agencies, international finance organisations, and NGOs have undertaken
programmes for post-tsunami/earthquake rehabilitation and longer term social and
infrastructural assistance. Many of the fisheries initiatives have focused on the provision of
inputs and the promotion of aquaculture. However, the reconstruction efforts seem not to
have touched some of the more critical and fundamental constraints that the fisheries sector in
Nias faced even before the earthquake. These included the poor forward and backward
linkages in terms of infrastructure, market linkages, institutions, capacity building, and credit
and investment, and fisheries management. Among the new production-related initiatives,
those related to aquaculture (seaweed culture, crab culture) have not managed to sustain
themselves once the external support is withdrawn, while interventions such as new smoking
systems failed signally. The micro-finance initiatives did not have time enough to stabilise
before some of the funding and implementing agencies withdrew from Nias.
Options for future post-harvest and market initiatives in Nias
A. Constraints for development of new market supply chains in Nias
1. The level of development of Nias fisheries can be characterised as having three feet in a
pre-modernisation stage of development and one foot in the modernised stage.
Modernisation is a slow process and cannot really be viable unless some massive
investments are made in the sector.
2. Apart from those catering to the existing supply chains, there are hardly any surplus fish
catches in Nias. The existing fishing operations are mostly small-scale, partly motorised,
and with very little carrying capacity onboard. Much of the fishing is by hook-and-lines.
Big surpluses can only come when the fishing systems become bigger and more efficient,
a cure that has proven to be worse than the disease worldwide in the last fifty years,
especially as there are already concerns about resource-health in Nias fisheries.
3. A majority of the fish traders in the local fish supply chains in Nias are poor. A new
market supply chain focusing on a distant market would require capital investments and
some sort of organisation, which are beyond the capacity of most local fishers.

10

4. In Nias, fish is one of the few locally produced commodities and thus more affordable.
Given that a majority of people consuming fish are poor, taking the fish outside Nias,
however lucrative it might be, cannot be justified.
5. Given the existing family-based business connections with Sibolga, there is little scope
to break the local dependence upon Sibolga markets; doing so might mean marginal
benefits at the risk of the disintegration of a relatively efficient market base.
6. The lack of appropriate community-based organisations in the fisheries sector in Nias
is a major constraint for undertaking any important post-harvest or marketing
interventions unless more work is done first to develop these along sustainable lines.
7. The level of development of fisheries-related infrastructure in Nias is such that it has a
long way to go before it can even meet the needs of the existing supply chains, let alone
the increasingly more stringent export needs.
8. The fishers of Nias lack the awareness, skills and capacity to improve efficiencies of the
existing systems and to diversify fishing activities to target new species, new products,
and new markets.
9. With little institutional credit and no private sector interest in investing in fisheries,
the capacity of the local fishers and fish traders to find the necessary investments to target
and reach new markets is practically nil.
Thus, the current production, post-harvest and market systems in Nias are not sufficiently
evolved to develop and sustain a new supply chain focusing on external markets.
Consequently, rather than focus on new supply chains, there is much value in trying to
address the gaps in the existing supply chains through loss reduction and value addition.
B. Broad agenda for fisheries and post-harvest development in Nias
The key conclusions that emerge from the foregoing are:

The fisheries sector (including post-harvest and marketing) in Nias Island is definitely in
need of a major overhaul to bring it more into line with the wider trends and processes in
Indonesia and elsewhere.
The process of reform will be a long and costly affair involving major investments in
basic infrastructure, capacity building and technologies, not only in fisheries, but at the
wider societal level.
Given the nature of activities into which investments will need to be made, there may not
be much private sector contribution to the reform process itself, although this would
change as the basic conditions in the sector improve alongside opportunities for
investments.

Suggested actions for fisheries development in Nias include interventions in a range of

activities covering: (i) socio-economic development; (ii) fisheries management; (iii)
improving the technology of fishing and post-harvest (which are contingent upon a strong
fisheries management system being in place); (iv) human resource development; (v)
community organisation development; (vi) infrastructure development; (vii) development of
access to credit and investment; and (viii) development of market access and information.
Based on the concerns emerging from the PHO, the FAO Post-Harvest and Marketing Project
developed an activity plan that covered five critical intervention areas: (i) policy guidance;
(ii) capacity building; (iii) pilot-scale technical interventions; (iv) community institutional
strengthening; and (v) market support.
11

1. INTRODUCTION
The Fisheries Post-Harvest and Marketing Systems for Fisheries Products Project in Nias,
Indonesia (henceforth referred to as FAO-Nias project) is executed by the Food and
Agriculture Organization of the United Nations (FAO-UN) with a view to develop and
improve the livelihoods of the fishers and traders involved in post-harvest and marketing
activities in Nias Island. The project has three main expected outputs: (i) a post-harvest
overview (PHO) of Nias Island, which aims to provide a good understanding of the postharvest fisheries sector in Nias; (ii) developing and supporting small and medium enterprises
in post-harvest and marketing in Nias; and (iii) establishing a fish market information system
with links to North Sumatera, Aceh and wider networks.
The post-harvest overview of Nias is an essential starting point for the project because one of
the main impediments to the development of the post-harvest fisheries sector (handling,
processing, and marketing) is the lack of understanding about the sector in the policy and
planning processes at all levels. The Nias Post-Harvest Overview (PHO) is thus expected to
provide: an understanding of how the sector contributes to national development objectives;
the characteristics of the supply, processing and consumption of fish; the changes which are
taking place in the subsector and their impacts on the local livelihoods; and a description of
the institutions and interventions which support the subsector. It provides a broad
development strategy for pro-poor interventions and development, underpinned by the FAO
Code of Conduct for Responsible Fisheries (CCRF) and will support the National, Provincial
and District level planning processes in terms of focusing their attention on post-harvest and
marketing issues.

Methodology
The post-harvest overview is the outcome of work done in Nias during October-December
2009, which involved (i) fieldwork by the project team as well as by the teams consisting of
the staff of the Dinas Kelautan dan Perikanan (DKP); (ii) interactions with a range of
secondary stakeholders; and (iii) secondary data reviews. The statistics used in the study were
drawn from the data published by different government departments. The conclusions of the
study were subsequently validated at a workshop conducted by the project on 20th November
2009 in Gunungsitoli, where a range of key stakeholders from the government, NGOs and
private sector participated. The draft PHO was translated into Bahasa Indonesia and
circulated widely for feedback. The final revision of the PHO was based on (i) the feedback
from varius quarters both within and beyond Nias and (ii) fresh knowledge gained by the
project in implementing its activities.
The lack of strong and reliable statistics relating to the numbers of fishing villages, people
involved in fishing, post-harvest and trade was found to be a major constraint in the PHO
process. The statistics used in the study came from various sources and there were several
gaps and inconsistencies in the available data. The gaps were further complicated by the
recent division of Nias into five districts (four kabupaten and one kota). This meant that the
numbers were helpful to understand some broad trends, but could not be accepted as being
fully accurate. Wherever the study drew conclusions about a particular trend, it tried to do so
based on physical verifications and a number of interviews rather than depend entirely on the
statistical data.

12

Subsequently, based on a clear need expressed by the local DKP administrations to undertake
a fresh census of the marine fisheries of Nias, the project undertook a detailed census to
obtain fresh statistics2, which have been used to revise the statistics in the final version of the
PHO. For logistical reasons, the Census was confined to marine/coastal fisheries and covered
only Pulau Tello island in the Pulau Baatu group, besides excluding some other outlying
islands within Nias. The exclusions are not considered to make a significant difference to the
overall numbers, however it is hoped that the remaining areas will also be covered by the
concerned departments in due course and that the census itself will be periodically updated.
The statistical summary of the census of Nias is presented in Annexure 1 of this report.

Structure of the report

Chapter 2 provides a brief description of Nias, highlighting the administrative, social and
economic context which forms the basis of fisheries and post-harvest activities. Chapter 3
provides an account of the importance of fisheries to Nias economy and of the people in
fisheries and post-harvest sectors in Nias, including a discussion on poverty in the fishing
communities. Chapter 4 provides a description of the fish production systems in Nias,
covering the fishery resources, craft and gear, fish production and fisheries management
arrangements. Chapter 5 provides a description of the key market supply chains in fisheries,
along with a description of each supply chain including the people involved, scales of
operation, technology and infrastructure utilised, markets and market access arrangements,
investments and returns, and access to credit. Chapter 6 discusses the support systems in
fisheries sector infrastructure, investment and credit, community organisations, capacity
building, administration and policies, concluding with a discussion about the earthquake of
2005 and its aftermath. Chapter 7 discusses the constraints for development of new fish
supply chains in Nias. Chapter 8 provides a broad agenda for fisheries and post-harvest
development in Nias.
NOTE:
It can be quite confusing for an outsider to come across the name Nias standing in for different
geographical entities in the region. It is the name of the island group as well as of a particular island
within the group, and four of the five districts also sport Nias in their name. For the purposes of this
study, unless specifically stated otherwise, (i) Nias denotes the administrative region comprising the
main island plus the smaller island groups; (ii) Nias Regency denotes the north zone of the island,
including the newly formed districts; (iii) Nias Selatan denotes the southern district of Nias including
the Pulau-pulau Batu island group; and (iv) Nias Island denotes the main island of Nias, minus
Pulau-pulau Batu. The local convention is to use (i) Pulau-pulau Nias, (ii) Nias Kabupaten, (iii) Nias
Selatan, and (iv) Pulau Nias respectively for these areas. The new districts that came out of the
former Nias Kabupaten are: Nias Utara, Nias Barat, Nias Induk, and Gunungsitoli Kotah, but these
have been treated as Nias Regency (Nias Kabupaten) unless otherwise specified.

The census was carried out by teams of DKP officers trained by the FAO-Project in basic post-harvest issues
and also in simple data collection mechanisms. The methodology for data collection included questionnaire
surveys in each village, and the data are collected from the existing statistical sources in each village and by
interactions with the village representatives. This was further validated through informal interviews involving key
informants and focus groups.

13

2. THE WIDER CONTEXT: NIAS ISLAND

1. Physical, geographical & ecological characteristics
Nias is an island located at 0012 1032 N latitude and 970-980 E longitude in the Indian
Ocean. The island is about sixty nautical miles west of the North Sumatera province of
Indonesian archipelago. The main island has a land area of approximately 4800 km 2, which
goes up to 5320 km2 when the total administrative area covering 131 small islands (27 in
Nias and 104 in Nias Selatan) is included. The main island has a coast line of about 400 km
and a continental shelf area of about 5000 km. There are 149 rivers flowing through the
island of which only 20 are wider than 20 m.
The island has an equatorial weather, with fairly uniform temperatures round the year, the
daily temperatures averaging between a maximum of 31 0C and a minimum of 220C. Relative
humidity is generally high, averaging around 90% round the year. The average rainfall is
3402 mm per year, with a monthly average of 283.5 mm. On average, it rains for about 242
days in a year or a little over 20 days in a month, which means that there is no distinct wet
season though it rains more from October to December. The average wind velocity is 5 knot
per hour, and is northerly in direction for about eight months of the year.

2. Administrative divisions
Administratively, Nias is a part of the North Sumatera Province. Until 2003, the island
formed one district, Nias Regency (kabupaten). Based on an agreement in May 2000
(formalised in 2003), the erstwhile Nias Regency was separated into two administrative
districts (kabupaten): Nias and Nias South (Nias Selatan), the latter including a group of 101
small islands called Pulau-pulau Batu, lying some 40 nautical miles south of Nias Island. One
of these smaller islands, Pulau Tello, is an important fishing centre contributing sizeably to
the overall fishing landings in Nias. Gunungsitoli, the biggest town in Nias and its main
economic hub, is the administrative headquarters of the Nias district while Telukdalam, the
other major town in the island, is the headquarters for Nias Selatan administration.
More recently (in 2009), the northern Nias district has been further sub-divided into three
districts, Nias Utara (North Nias), Nias Barat (West Nias), and Nias (comprising the northeastern parts of the island), while Gunungsitoli became a Kotah (Urban District), taking the
number of districts on the island to five. The administrative structures in the new districts are
still in the process of being organised and, in this overview, the northern districts have been
treated as one zone Nias Regency except where specific data are available for each
district. Also from an ecological and socio-cultural perspective, it is more appropriate to treat
the island as comprising of two zones, the north and the south3.
In all, there are 42 sub-districts (kecamantan) in Nias, 34 in Nias Regency and 8 in Nias
Selatan, encompassing 651 villages (desa) and six urban areas (kelurahan).4 Of these, 206

A number of studies (Beatty, 1992; Viaro & Ziegler, 2006) consider the island to consist of three zones,
including a central zone comprising of the hilly central tracts of the island.
4
According to the District Statistics for Nias and Nias Selatan respectively, there are 439 villages and 4 urban
areas in Nias Regency and 212 villages and two urban areas in Nias Selatan

14

villages and 5 urban areas (32%) are on the coast5. Nearly 60 percent of the villages (386) are
located at less than 500 metres above the sea level.

3. Administration
At the district level, the Bupati is the executive head of the government and is elected for five
years. Each district has a House of Parliament, which is the main policy-making body and
consists of elected members of parliament. The current parliament of Nias Regency has 40
members, of whom one is a woman who are elected along party lines. The parliament of Nias
Selatan has 30 members of whom three are women. The Bupati heads the civil
administration, which has a cadre of 5638 in Nias Regency and 2349 in Nias Selatan. With
decentralisation of the administrative systems in Indonesia, the importance of the local
administration has increased considerably over the last decade.
At the village-level, the Head is in charge of the administration, but as per Law No. 32 of
2004, the Village Consultative Body (BPD) consisting of elected representatives of the
village is the general body for village consultation and decision-making all aspects of the
village governance, including a supervisory role over the functioning of the administration.
Besides the BPD, there is the Lembaga Ketahanan Masyarakat Desa (LKMD), which has a
more active role in organising village self-help activities and village development. Finally,
there is the Voluntary Womens Organisation (PKK), which coordinates activities among
village women in a wide variety of fields ranging from health and family planning to incomegeneration.

4. Population
In 2007, the total number of people in Nias was 714,492 with a population density of 149 per
km2 in Nias Regency and 127 per km2 in Nias Selatan. Nias Regency has a population of
442,548, comprising 85,361 households, while Nias Selatan has a population of 271,944,
comprising 50,831 households. In both cases, the average household size is 5. Gunungsitoli
town, with a population of nearly 60,000 has the highest population density of 450 per km 2,
while the northern sub-district of Lahewa Timur has the lowest, at 47 per km 2. Generally, the
northern and western parts of the coast are less densely populated.
Population growth rate for Nias Regency is 1.55% (for 1990-2000) while that for Nias
Selatan (for 2000-2005) is 1.13%. Overall, Nias Selatan has been showing a decreasing
population size, from 282,715 in 2004 to 271,944 in 2007, and the causes for the decrease are
not known. In the western coastal sub-districts of Lahewa and Lolowau (in Nias Regency
and Nias Selatan respectively), the population has showed a negative growth rate during the
respective periods of assessment.
In 2007, the ratio of the number of men to that of women in Nias is roughly equal: a total of
352,710 men as against 361,782 women. Based on the statistics for Nias Selatan for which
disaggregated data are available, about 42 percent of the population is under 14 years of age.

BPS-Statistics, 2008

15

5. Culture and religion

In contrast to the rest of Indonesia, the predominant religion of Nias is Christianity and six
out of seven Nias inhabitants are Protestant, while the rest are evenly divided between
Muslims (mostly immigrants from other parts of Indonesia) and Catholic 6.
But modern religions have been relatively recent entrants into the island. The island has been
home to an indigenous community, the Ono Niha (Child of Man), which has a rich history
dating back to pre-historical times and its megalithic origins have attracted much attention
from anthropologists around the world. While it is out of place to attempt a description of this
unique culture (and its magnificent architecture) here, it is however important to recognise
the strong imprint of the Ono Nihas turbulent history (which included a vibrant overseas
trade from pre-historic times in various commodities that included slaves), martial conduct
(which contributed to constant internecine warfare between villages, often at the cost of
agriculture), social organisation (hierarchical, based on a sort of indigenous caste system),
contradictions in outlook (at once boisterously adventurous and passive), and consumption
patterns (centred on pig, an animal that has a significant ritual role for the Ono Niha) on the
evolution and continued functioning of the wider structures and processes in the island 7. This
has relevance also for modern activities like fishing and tourism 8, particularly in the central
and southern parts of the island. The northern part, dominated by Gunungsitoli, has a totally
different and altogether more enterprising orientation, due mainly to the sizeable
proportion of new communities.
Besides the Ono Niha, who are essentially the people of the interior depending on forest
produce and slash-and-burn agriculture, there are a number of other communities on Nias,
mostly migrants of Malay, Batak and Chinese origin. Many people from mainland Indonesia,
especially Acehnese and Sumatrans, made their way to Nias over the centuries to settle down
there on a permanent basis. It is largely if not entirely these new people (who have been
around for generations) who dominate the coastal areas and undertake fishing and other
coastal activities.
The Chinese are the main tradesmen on the island, who especially dominate the islands
external trade (including fish). The organisation of their business enterprises centred around
large extended families spread out all over the mainland Sumatera is an important reason
for their success, and this makes their achievement hard to beat (which as we shall see is
relevant in case of fish trade).

6. Economy
The Gross Regional Domestic Product (GRDP) of Nias Selatan in 2007 is Rp. 1,692,400
million in current market prices, up from Rp. 1,163,491 million in 2003. The GRDP of Nias
Regency in 2007 is Rp.3,179,889 million, while it was Rp. 1,852,518 in 2003. In constant
prices (base year:2000), the GRDP of Nias Selatan and Nias Regency in 2007 was

Wikipedia
The name Nias itself is considered to be a corruption of the indigenous name for the island, tan niha (land of
the people) (Beatty, 1992:3).
8
Wolff (2007) provides an interesting analysis of how tourism on Nias Island has come to be shaped by the local
culture in south Nias.
7

16

Rp.1,090,665 million and Rp.1,739,897 million respectively. The share of different sectors to
the GDRP at current market prices in 2007 is shown in the following table:
Nias Regency
Agriculture

Nias Selatan

Average

43.52

42.82

43.17

Mining & quarrying

2.37

2.93

2.65

Industry

1.46

1.90

1.68

Electricity, gas and water supply

0.32

0.36

0.34

Construction

8.52

10.90

9.71

17.52

20.04

18.78

Transport & communications

8.31

7.12

7.72

Financial, insurance, real estate services

7.53

5.43

6.48

10.45

8.50

9.48

Trade & hotels

Other services

The bottom line is that, with hardly any industrial development, the island remains dependent
on primary sector activities for economic growth and for livelihood support. On the other
hand, Nias also relies heavily on the imports from the mainland, which include a number of
basic commodities. Although the value of the exports and imports is not known, the volume
of goods loaded and unloaded from Gunungsitoli port and from Binaka airport provides a
rough indication of a negative balance of trade (at least in volume) with the mainland, as the
following tables show:
Cargo movement from Binaka airport, 2004-07
350000

300000

300000

250000

250000

200000
Loaded (Muat)

150000

KG

MT

Cargo movement from Gunungsitoli Port, 2004-07

350000

Unloaded (Bongkar)

200000
Loaded(Muat)

150000

100000

100000

50000

50000

Unloaded (Bongkar)

0
2004

2005

2006

2004

2007

2005

2006

2007

The islands dependence on mainland for meeting most of its needs is reflected in the high
cost of supplies on the island. Also it means that Niass mainland trade relations (especially
with Sibolga and Padang) are more than mere business transactions they are the lifeline on
which the islands wellbeing hangs. This needs to be taken into account while planning any
market related initiative based on local production.
The earthquake of 2005 seems to have further affected the economic growth rate of Nias
adversely. Going by the figures for Nias Selatan from 2005, Nias has lagged behind
Indonesia as a whole as well as North Sumatra province.
Year
2004
2005
2006
2007 (preliminary)

Indonesia
5.05
5.60
5.48
-

North Sumatra
5.74
5.48
6.20
6.90

17

Nias Selatan
7.16
(-) 2.12
3.99
4.83

7. Employment
High cost of living, unreliable access to basic services like electricity, transport and water,
need for importing virtually every necessary item from the mainland, and lack of trained
manpower locally to manage and maintain operations not to speak of the ever-present threat
of earthquakes have meant that private sector investments in the island have been virtually
non-existent and industrial development has been very poor. Consequently, agriculture and
other primary sector activities continue to remain the main employment sources for the local
population.
In 2007, the labour force participation rate of people of 15 years and above in Nias is 68.7
percent. Nearly 80 percent of the population is employed in agriculture and related activities
(forestry, plantations, fisheries and livestock), 0.37 percent in manufacturing/industrial sector,
5.26 percent in trading, 6.53 percent in services, and 8.44 percent in other activities. The
proportion of women in the work force in agriculture and related activities is about 46
percent. Lack of many opportunities on the island is a cause of large-scale emigration of the
local people to mainland Indonesia9.

8. Agriculture and livestock

The main agricultural produce includes rice, maize, cassava, sweet potato, peanut, and green
pea, besides vegetables and fruits. Beatty (1992) mentions that the cultivation was in
swiddens and gardens, mostly by traditional methods using no plough, draught animals or
fertilisers. Bananas were so profuse at one time that Nias was referred to as al-Banan, i.e.,
Banana Island, by 14-Century chroniclers. Besides common food crops, Nias also produces
several commercial crops intended for export. These include the three cos - coffee, cocoa,
copra (and other coconut products) plus rubber, cloves, nutmeg, kapulaga (a spice), and
patchouli (for aromatic oil). Most fishers also own agricultural lands and seasonally take
part in agricultural operations. For instance, the beachseine fishers of Ladara operate their
nets three days in a week and spend the rest of the week looking after their agriculture work.
The fishers dependence on agriculture has been remarked by the BOBP (1991) as a
constraint for defining fishers in the Nias context.
Livestock keeping is another very important livelihood activity on the island. Cows, buffalos
and goats are kept in large numbers, but it is the pig which holds the pride of place in Nias
cuisine and culture (Viaro & Ziegler 2006; Beatty, 1992)10. Besides, a sizeable number of
chickens and ducks are reared in both districts.

9. Tourism
Tourism is considered as an important growth motor for Nias economy although so far its
potential has remained unproven. Apart from its pre-historic local communities, Nias has
some internationally famous surfing beaches. The beaches near Telukdalam (Sorake Bay and
Lagundri) as well as those in the Hinako Islands are most famous and draw a large number of

See Johannes Hammerle, 2007.

In Nias Selatan, as against a total of 25 cows, 237 buffaloes, 30 horses and 1,045 goats, there were 9,780 pigs
in 2007. In Nias Regency, the pigs numbered 35,375, as against 1620 cows, 932 buffaloes and 9763 goats. Pig
is also an important medium of exchange. Beatty (1992) provides a detailed account of the importance of pig as a
medium of exchange in the wedding and ritual feasts in Ono Nihan culture.
10

18

international tourists. The Government of Indonesia has plans to develop Nias as a worldclass tourist resort which included setting up holiday resorts, but the plans may have received
a setback with the tsunami of 2004 and the earthquake of 2005. The number of foreign
tourists who visited in Nias in 2007 was 6,461, and a majority of these came from Europe.
With the growth in tourism in Nias Selatan, some of the local fishers shifted to tourism-based
activities (running hotels and restaurants, surfing assistants) and with further growth in
tourism in Nias (and in Pulau-pulau Batu), there is potential for more fishers to find
alternative employment in tourism, but this is contingent upon a more vigorous growth of
tourism sector in the coming years.

10. Quality of life indicators

The statistics for North Sumatera (2005) indicate that in 2004 Nias and Nias Selatan districts
stood last in terms of their Human Development Index (HDI) among the 25 districts in North
Sumatera Province. However, the HDI for the districts has been showing a consistent
increase since 1990, when it stood at 43.2 for Nias as a whole, to 66.1 and 63.9 respectively
for Nias Regency and Nias Selatan in 2004. The overall HDI for the Province was 72.11
The standard level of education is considered to be high in Nias compared to other parts of
North Sumatera, and the presence of sizeable missionary activity (both Catholic and
Protestant) on the island since mid-19th Century may have played an important role in this12.
Aggregate figures of educational attainment are not available for the whole of Nias. In Nias
Selatan, the number of unschooled people is about 22.5 percent in 2007 (17% for men and
27% for women), and in Nias Regency, the number is 19 percent in 2005 (15% and 22.5%
respectively for men and women). A significant proportion of the aid in the post-Earthquake
period has gone into education, leading to an increase in the number of school-going children.
The average life expectancy in Nias is 69 years, which is almost the same as for North
Sumatera province (69.3). Infant mortality rates (IMR) on the island have been declining,
from 30.64 in 2005 to 27.10 in 2007, which is also in keeping with the trends in North
Sumatera province as a whole. All the same, the healthcare facilities need much
improvement. In 2007, the number of general physicians working in state-run and private
healthcare facilities in Nias was only 42, which for a population of over 700,000 is very much
on the lower side. Given the hilly terrain and uncertain means of transport, the islanders
access to healthcare leaves much to be desired13. Malaria, airborne diseases, hyper-tension,
and skin diseases are some of the more prominent health hazards in the island.
In Nias Regency, for which data are available, over 88 percent of the population lived in their
own dwellings in 2007. Over 66 percent of the households lived in dwellings with a floor
area of 20-49 mt2, while a little over 5 percent of the population lived in dwellings of over100
mt2. Over 36 percent of the population in the Regency use open wells as the main source of
water, while another 32 percent used water from the streams.

11

Pemda Su 2005
Uwe Hummel, 2007
13
In 2007, there were 137 state-run and 56 private, healthcare facilities of various kinds in Nias Regency. There
were 36 general physicians, 6 dentists, 283 nurses, 325 assistants, 203 midwives, and 209 SPPH in the district.
In the same year, in Nias Selatan, there were 88 state-run and 6 private healthcare facilities. There were six
general physicians, two dentists, 37 nurses, 162 assistants and 13 midwives in the district.
12

19

3. FISHERIES IN NIAS: THE SOCIO-ECONOMIC CONTEXT

1. Importance of fisheries to Nias economy
Contribution to GRDP
Contribution of fisheries to GRDP is available for Nias Regency, which is presented here. In
2007, the contribution of agriculture to the GRDP is 43.5 percent (at current prices) and 41.26
percent (at constant prices). This includes, among others, that of fisheries whose contribution
to the GRDP is 6.50 percent (at current prices) and 5.34 percent (at constant prices). In real
terms, fisheries contribution to GRDP was Rp. 206,698 million at current prices in 2007, up
from Rp. 67,277million in 2000. In constant prices this works to Rp.102,116 million in 2007
as against Rp.67,277million in 2000, indicating that the contribution of fishing to GRDP is
increasing.
Percentage contribution of agriculture and fisheries to GRDP at
current prices (2000-07)
50
40
30
Agriculture

20

Fisheries

10
0
2000

2001

2002

2003

2004

2005

2006

2007

The overall contribution of fisheries to the GRDP (at current prices) shows a slight increase
from 2000 onwards, while the same in constant prices has remained constant 14.
Contribution of fisheries to GRDP in Nias, 2000-07
250000

Mi llion Rp

200000
150000
100000
50000
0
2000

2001 2002 2003

At current prices

2004 2005 2006

At constant prices

2007

No information is available on the revenues from fisheries in Nias. The trade is entirely in the
private sector and there is no government intervention anywhere in the supply chains. The
Gunungsitoli port, the most important exit for fish from the northern parts of the island, does
14

What is rather surprising, and this will come up again with fish statistics, is that the figures do not show any
impact of the earthquake of 2005 on the contribution of fisheries or agriculture. Even the GRDP itself only shows
a tiny dip in 2005 which it quickly recovers by the next year.

20

not keep records of the cargoes that pass through the port. In case of Nias Selatan and
particularly Pulau Tello, much of the fish transport also is in the private sector, and the data
on the volume and the value of exports remains unquantified. No information is available on
the trade flows in different supply chains within the island.
By the available indicators, Nias is a net exporter of fish and physical observations and
interactions with stakeholders indicate that exports account for about 30 percent of the total
production in the island. Given the higher values of the exported fish, the proportion of
exports to the overall fish production would be higher in terms of value. Good quantities of
dried fish are imported into the island for domestic consumption, but these though fairly
widespread around the island could be less in quantity and much lower in value when
compared to the exports.

Contribution to local food security

In Nias Regency, per capita consumption of fish is reported to be about 20.29kg per annum
(WWF, 2008)15, which is less than the North Sumatera average of 27.6 kg and the Indonesian
average of 28 kg/annum16. As BOBP (1991) notes, the preferred source of protein for the
majority of the population is pork and chicken augmented by freshwater fish and game
hunted in the forests of the island. Marine fish only supplemented the usual diet and this may
have had implications in the past for the production and consumption of fish. However,
anecdotal evidence suggests that the consumption of fish in Nias is growing steadily. The
increasing cost of pork and chicken (may be due to the need for importing meat from the
mainland) may also be contributing to this 17. Field interactions and observations revealed that
about 60 percent of the fish landed in Nias is consumed locally in fresh condition and another
10 percent is consumed as dried/smoked product. Most traders interviewed were of the
opinion that supply was the limiting factor for the local consumption not being higher and
visits to fish markets in Gunungsitoli and weekly markets elsewhere bear this out.

Livelihood support
Besides its contribution to food security, the other major contribution of fisheries sector is to
the livelihoods, especially of the poor. The following section provides a description of the
people involved in fisheries sector in Nias.

15

The DKP derives the figure by dividing the total local production of fish by the size of population, suggesting
that it ignores (i) the exports from the island (which are about 30 percent) and (ii) the imports of dried fish into the
island (which may not be very high). It also implies that increased fish production automatically equals higher per
capita consumption, which is not necessarily the case.
16
DNA News, 2009. Konsumsi Ikan Masyarakat Sumut Masih Rendah, 27,6 Kg per Kapita/Tahun. DNA News,
http://www.economy.dnaberita.com/25%20sept%2009%20Konsumsi%20Ikan.php, visited 26 October 2009.
17
Mentioned in the project concept note; importing meat from the main land is mentioned by Hammerle (2007) in
connection with the Patchouli boom: Because there were not enough pigs and chicken on the island, each night
the Ferry from Sumatra brought these animals that would be needed for the feasts. The eggs served in a
Telukdalam eatery were reported to have come from Sibolga because the local supply was not sufficient.

21

2. People involved in Nias fisheries and post-harvest sectors

Number of fishing villages in Nias
As Gallene (2005) points out, there is no precise information on the number of fishing
villages in Nias. The difficulties in identifying fishing villages and defining people as
fishers in Nias are explained by the BOBP (1991) as being due to two factors: (i) only a
small minority of people undertake fishing and related activities in the coastal villages and
(ii) people in the coastal villages depend on a range of activities apart from (and alongside)
fishing, which makes characterising any person/household as being fishers, a fact remarked
upon by Gallene (2005) as well.
According to the Village Potential Statistics of Province of North Sumatera for 2008 (p.20),
the number of villages in Nias where a majority of population work in fisheries was 47 (19 in
Nias Regency of which 2 are non-coastal and 28 in Nias Selatan). This was much on the
lower side. In 1991 itself, BOBP (1991) mentions that there were some 70 fishing villages in
Nias, of which 26 were located in Gunungsitoli and Tuhemberua districts. More recently,
Gallene (2005) carried out an assessment of the earthquake-related damages to fishing
equipment which covered 100 fishing villages including Pulau Pulau Batu18.
The census carried out by the FAO-Nias project found 127 coastal villages in Nias in which
fishers are found to be resident, although their numbers varied widely from as low as 3
people each in Ombolata and Hilimberua Naa villages in Sirombu sub-district up to 210 in
Bozihona in Idanagawo sub-district.

Number of people involved in fishing and post-harvest

The FAO-Nias census gives the number of people involved in fishing and post-harvest trade
and processing activities in Nias, who number 6620. The numbers do not include (i) inland
fishers, (ii) fishers in some of the outlying islands, and (iii) several categories of ancillary
workers (boat builders, fish carriers...), which means the total number of people depending on
fishing and ancillary activities is higher. When more information is obtained on all the
stakeholders in fisheries, including consumers and local businesses depending on the fishing
economy for their custom, the number of people dependent on fisheries is likely to increase
manifold. The breakup of people in different activities is as follows:

Fishers

Fresh fish
tradersmotorbike

Fresh Fish
tradersbicycle

Fresh Fish
traderswalk

Fresh Fish
tradersretail
stationery

Fresh fish
exporters

Dried fish
processors

Smoked
fish
processors

Total

5449

384

199

74

231

31

135

117

6620

Of these, women number 196 (or 3 percent of the total) and a majority of them are involved
in fish trade. A majority of people in the sector are poor.

18

It is possible that the administrative definition of a village covers a number of smaller communities and while
the government statistics provide information on the administrative units, the assessment of fisheries is carried
out by community. This needs to be explored further.

22

Stakeholders in the fish supply chains

The stakeholders in the different fish supply chains can be classified into five categories:

Producers, who include boat owners and crewmembers, people involved in

aquaculture production; seaweed production, cage culture, live lobster collectors
Traders, involved in various supply chain activities
Processors involved in making salted & dried fish and smoked fish
Ancillary workers are the suppliers of resources and services necessary for the
functioning of supply chain activities
Consumers

The following table summarises the key stakeholder groups in Nias fish supply chains:
Producers
Boat owners and crew, nonmotorised boats
Boat owners and crew, small
motorised boats
Boat owners and crew, large
motorised boats
Fishers collecting lobsters, sea
cucumbers
Fishers involved in cage culture
for groupers
Aquaculturists
Processors
Salted-and-dried fish makers
Smoked fish makers

Traders
Motorcycle traders fresh fish and dried fish
Bicycle traders men and women
Retail local fish traders men and women;
processed and fresh supplies
Weekly market fish traders men and women;
processed and fresh supplies
Road-side fish sellers
Wholesale importer-distributors fresh and
processed
Export traders
Commission agents
Live lobster & grouper collectors and exporters
Ancillary workers
Workers in fish processing and trade
Boat builders and engine mechanics
Transporters (mini-van, motorcycle-rickshaw,
hand cart)
Fish packers and loaders
Icebox suppliers
Ice producers and sellers
Salt suppliers
Firewood suppliers (for smoking)

Consumers
Local fresh fish: consumers of costly fish, medium priced fish and cheap fish; coastal and
non-coastal (interior of the island) consumers
Processed fish: consumers on the coast; consumers in the interior of the island
Exported fish: consumers in North Sumatera Province, in Indonesia, and abroad

Socio-economic characteristics of the stakeholders in fish supply chains

According to BOBP (1991), the fishers on the island are predominantly adherents of Islam,
although there is an increasing prevalence of Christians in fishing in recent times. The
agricultural orientation of traditional Niha culture and the difference in religion between the
fishers and the Christian majority has led to the fisher becoming a distinct community living
on the fringes of the mainstream of Niha society. This puts the Muslim fishers in Nias in an
anomalous position of being a minority in an otherwise predominantly Islamic Indonesia. The
fishers of Gunungsitoli, Telukdalam and other parts of Nias Selatan, including Pulau Tello

23

are mainly Christians and this has implications on the orientation of their fishing operations:
some of them prefer to stop fishing on Sundays, while their Muslim counterparts elsewhere
continue fishing through the week, or take holidays on a different day. Thus, for instance, the
Muslim fishers of Sirombu avoid fishing from the evening of Thursday to the evening of
Friday.
The gender roles in fisheries are less clearly delineated than elsewhere: the role of women
though important in some areas does not seem to be high in the supply chains compared to
other south and south-east Asian countries. Two activities where the women have an active
role are as bicycle fish vendors in Gunungsitoli and as processed fish traders in most retail
markets and weekly markets. Some road-side fresh fish sale is also undertaken by them. At
the rural landing centres, women are especially absent from the fish transactions. Part of the
reason may be cultural and religious, but the small size of catches and the markets might also
be an important factor. The study could not focus on the gender roles in the productive and
household activities and decision-making at the household and the community levels, which
is a gap that the project will need to fill over its lifetime.
Age-wise, most people in the supply chains are of a productive age group and very few aged
people are seen. Access to agriculture may help people to retire after a certain age, but this
will need to be explored further. Children are active in many supply chains, including as fresh
fish traders in places like Pulau Tello, and the fact of their involvement in these activities
being coupled with regular school-going (at least as far as can be ascertained) might be taken
as a positive sign.
Agriculture is the principal alternative, or supplement, to fishing as a source of income for
people living in coastal communities of Nias. Even among those who regard themselves as
fishers, ownership of agricultural land is considered important security for the household.
But, given their preference to be involved in fish supply chains and use the non-fishing
periods for other activities would indicate that fishing and post-harvest are their main sources
of income. Given the small size of land owned and the traditional methods of farming (no
plough, draught animals or fertilisers), agriculture involves growing food for own
consumption and providing some social security for the older people in their retirement.
Looking at the economic status of the people in fish supply chains in Nias, it can be said that,
with few exceptions, almost everyone can be considered as being poor in one or more ways.
Income poverty obviously is the most prominent characteristic of most stakeholders, and the
average incomes earned by them from the fishing, post-harvest and ancillary activities in Nias
are extremely low. In fact, but for the access to alternate sources of income and to (possibly)
non-monetised common property resources, besides a strong family- and kinship support
tradition, it is very difficult to visualise a family existing on the incomes from fishing alone.
There are obviously some stakeholders in Nias fisheries who can be considered as well-off;
these include the big-boat owners (large motorised boat owners), export traders (i.e.,
suppliers of fish to distant and export markets), and a tiny number of live grouper and lobster
exporters. Even here, their affluence is relative to other stakeholders in Nias fisheries; when
compared to their counterparts on the mainland, they are not much higher on the economic

24

scale than the poorer stakeholders19. Even within the island, the small-scale fishing operations
would give little opportunity for big surpluses, meaning that the economic organisation of the
sector is not marked by steep differences between the rich and the poor.
Finally, while it may be possible to distinguish differing levels of access to resources and
basic services required for the wellbeing of the people within Nias (especially between the
urban and rural areas), life on the island does impose certain conditions that are applicable to
all residents on it irrespective of their social and economic status. With that in mind, one can
see that the quality of life on Nias does lag behind that on the mainland access to basic
necessities such as electricity, water and healthcare, transportation systems and markets,
commodities and services are not only more expensive, but also cannot be taken for granted,
even for the more affluent people. BOBP (1991) found that, in many fishing villages, public
amenities such as fresh water, electricity supply, healthcare facilities, and roads were nonexistent and this holds true for the most part even now, with the doubtful exception of
villages close to the two urban centres of Gunungsitoli and Telukdalam.

Poverty in fishing communities

BOBP (1991) carried out a detailed socio-economic analysis of the fishing communities of
Nias and the fieldwork conducted for the present study showed that much of the information
holds valid even now. According to the BOBP study, the most important factors influencing
the socio-economic conditions of Nias fishers are the access to agricultural land and the
access to markets for fisheries produce. The other characteristics of the fishing communities,
noted by the BOBP (1991) study, include:

Low earnings: the household incomes in fishing communities are low; the prices obtained
for fish catches in Nias are considerably lower for many species, compared to those in
Malacca Straits;
Limited access to credit: the contact of fishers to formal banking institutions was almost
non-existent, while access to informal credit sources too is very restricted;
Limited diversification of economic activity: Apart from fishing and agriculture, both of
which provided little surplus incomes, there were few opportunities for diversification. In
fishing, although it is accepted that the fishing systems were too traditional and need to
be modernised, there was little diversification or experimentation with new techniques.
A few experiments with new techniques have been undertaken since then with little to
show for it.
Limited investment in production: With no access to credit, with limited surpluses in
income for reinvestment, and with little awareness of alternatives, the investment in
production was low. The small-scale fishing operations were hardly profitable and there
were few incentives for more investments in fishing at the individual level.
Limited contacts with, or access to, government services: The contacts between
government agencies and the fishers were confined to those at the village level.
Lack of organised marketing channels: There were no local buyers for the catches
landed in the villages and this affected access to the outside markets20.

19

The big boats, for instance, will be categorized as small boats in a more developed fishing context, and the
export suppliers are supplying to intermediaries who in turn are supplying to the real exporters and in any case
the quantities they deal in are quite small.

25

Ownership of the means of production: Means of production were usually owned by the
producers and traders.

Almost the same issues appear to hold true even now for the stakeholders in fish supply
chains in Nias for improving their incomes, livelihood sustainability and quality of life.21
Thus, according to the fisheries census carried out by the FAO-Nias project, 57 percent of the
coastal fishing villages lacked medical services, 34 percent lacked schools, 48 percent were
without safe drinking water, 59 percent had no communication facilities, 24 percent had no
electricity and 92 percent had no banks.
Some suggested actions relating to social and economic context:
Census of fishing communities in Nias: The census carried out by the FAO-Nias project needs to
include the areas not covered by the project (outer island groups; inland fishing communities) and
must be regularly updated to reflect the changing demographic profile, as well as the trends with
respect to fishing and post-harvest systems, infrastructure and credit, and market linkages.
Study of social and economic organisation of fisheries and fishing communities in Nias: Very little is
known about the social and economic organisation of the fisheries and fishing communities of Nias.
Studies like BOBP (1991) and the current one manage only to highlight certain aspects of the people
as fishers in their relation to fisheries and post-harvest, but there is a big gap in terms of
understanding the people themselves. Issues like the organisation at the fishers household level and
at the community level, gender roles, place of children and aged people in the society, decisionmaking at the household and community levels, relations with the wider society, the fishers concerns,
their understanding of the past and its influence on the present and the future, their aspirations are
little studied. More significantly, little is known about peoples perceptions about poverty, how it
manifests itself in the Nias context and how many people are poor by these criteria. Without a proper
understanding of the human and the social contexts of fisheries and post-harvest sectors, any
analysis and the actions it gives rise to will remain a mechanical process, treating the people as
just one more cog in the fisheries machine rather than putting them at the heart of development. It is
important that a good study of the social and economic organisation of fisheries and fishing
communities be undertaken to develop a proper qualitative and quantitative understanding of the
people. The involvement of the government agencies the DKP, the BAPPADA and others in the
quantitative data collection process would also help inform and influence their future activities in
fisheries.
Review of government development and welfare programmes and impacts upon life and livelihoods of
the fishers: A review of the government development programmes (and other development
programmes especially in the post-earthquake period) is very important to understand (i) the
relevance of the programmes to the needs of the fishers and the fisheries sector; (ii) their
effectiveness in addressing the needs of the fishers; (iii) the terms of access to development
programmes for the people, especially the poor; and (iv) gaps in terms of coverage of different
stakeholders and their needs.
More systematic development plans to address the livelihood needs of the fishers: This would require
development support to fishers to obtain the necessary skills and funding support in order to improve
their current activities as well as to diversify to new activities, alongside providing social security for
the vulnerable groups of fishers (e.g., aged people).

20

Nowadays, most villages have one or more buyers who obtain and transport the fish to a central location for
onward export. In the absence of transport and preservation systems, the arrival of the trade intermediaries only
slightly lessens the problems of the fishers while also probably reduces their share in the final value of the fish.
21
This gives rise to much uneasiness and at least some cynicism about the point of undertaking studies such as
this one: Would someone else be referring to this study twenty years down the line and coming to the same
conclusions and suggesting the same recommendations?

26

4. FISHERIES IN NIAS: THE FISH PRODUCTION SYSTEM

1. The marine environment
The continental shelf extends from one nautical mile in Gunungsitoli to about ten nautical
miles in most other parts of the coastline. In the north and south, however, it extends in a
narrow, tongue-like shape up to thirty nautical miles. The slope shows an abrupt drop in most
areas. The shelf area of the main island is approximately 5000 km 2. Coralline outcrops and
coarse coralline sandy bottom areas are found in most parts of the continental shelf, which
reduces scope for using gillnets. Sandy and muddy trawling areas are scattered along the east
and west coasts. Removal of coral outcrops for road and house construction has contributed
to erosion of the shoreline in many areas, resulting in the loss of fertile areas and even the
newly-laid roads themselves!
The tidal range is very moderate (0.30 0.70 m) and the level of water in most small water
outlets is almost stagnant. This leads to the formation of sand banks, which prevent or limit
access to rivers by fishing craft other than small outrigger canoes and open planked boats.
The distribution of the continental shelf and the coral reefs has implications on the nature of
fishing and the catches in different parts of the coast. In the northeast, with a small
continental shelf of about one nautical mile, the fishers find the inshore waters not productive
enough and undertake offshore fishing with mother-boats. Their catches are dominated by
oceanic species like tuna and sharks. The wider continental shelf on the west coast allows
abundance of demersals and coral fish. The southeast and southwest have a wide continental
shelf but the surf action is reportedly high here, which affects fishing opportunities. The
south, off Telukdalam, is once again characterised by a wide continental shelf and good
catches of a wide variety of small and large pelagic species, demersals and coral fish.

2. The fishery resources

Sardine, anchovy, scad, mackerel, barracuda and flying fish are the most common small
pelagic species found in the near shore area of the coastal zone. These species are mainly
caught by monofilament gillnetting and beach seining. Although the BOBP study of 1991
was rather optimistic about the potential for further increase in these fish catches, field visits
indicate a decrease in the numbers of beachseines and inshore gillnetting as a result of
declining catches. The declines are attributed by the fishers to environmental factors and to
destructive fishing by the fishing fleets from the mainland.
Snapper, bream, grouper and emperor-fish are the most common demersal species caught in
the area up to the outer limit of the coastal zone. Penaeid shrimp are the important shellfish
resource and are caught by trammel-nets especially along the south-eastern parts of Nias.
Trawling for shrimp, though banned by Indonesian government since 1980, continues to be
illicitly undertaken by the fishing fleets based in Sibolga and Padang on the mainland.
Lobsters are found near coral reefs and in rocky shallow waters in the southern and western
parts of Nias. The Hinako island group off Sirombu is the main fishing area for live lobsters,
which are caught by hand by divers. Although lobsters are also caught by the other fishing
methods, dead lobsters have limited value, so the preference is to catch them live. Green mud

27

crab is caught from the mangrove areas of Lahewa and Tuhemberua using hoop nets and the
mud crab landings may have been declining. There is a small and reportedly declining sea
cucumber fishery on the west coast. Bullet tuna, frigate tuna, king mackerel, and dolphin fish
are concentrated in the coastal waters, while skipjack, yellow-fin, billfish and shark are more
widely distributed in the offshore zone. The share of the large pelagic species may have been
increasing in the overall catches, especially in the north-eastern area where non-motorised
outrigger canoes have shifted to fishing in offshore waters by using a mother boat for
herding them into the fishing areas.

3. Fishing craft
Historical trends
Traditionally, fishing in Nias was by dugout canoes, which carried one (occasionally) two
people, and were propelled by sails and oars. The effort to motorize and introduce new
fishing craft in Nias commenced in the 1980s on the request of the Government of Indonesia
to improve the fishing systems in the island. Subsequently, the FAO-executed Bay of Bengal
Programme (BOBP) developed three new boat designs suitable for motorisation and provided
technical support to local boat builders in their construction. Although motorisation has taken
root and some of the fishers managed to shift to the new systems of production, fishing is still
largely carried out by non-motorised dugout canoes ranging in length from 4-7 m, with or
without outriggers22. The following table shows the trends in the numbers of fishing boats in
Nias23, which seems to show an increasing trend over a four year period up to 2007:
Year

Nias Regency

Nias Selatan

Total

2003

5385

5385

2004

2527

2858

5385

2005

2546

2898

5444

2006

2666

3037

5703

2007

2756

3141

5897

Surprisingly, the numbers do not show a drop in 2005 when a number of boats had been
destroyed in the earthquake, although an assessment carried out by Gallene (2005) with the
DKP found 1062 boats of different sizes to have been lost or destroyed.
In the aftermath of the earthquake, a number of aid agencies concentrated on providing boats
of superior quality to the fishers. Thus, many fishers in places like Botolakha, Sirombu and
Lahewa received fibre-reinforced plastic (FRP) boats with inboard and outboard motors.
While the fishers are willing to accept and use the new boats, they do not seem to have got
such boats made any of the boats subsequently with their own resources. The reasons given
by the fishers include the high capital cost, recurring and replacement costs of the motorised
boats and the inability to convert the new opportunities motorisation provides into profits
(i.e., lack of forward and backward linkages to support the activity). On the other hand, there
22

As for the new designs developed by the BOBP, there has been no uptake at all and no boats of the new
design have since been built as the fishers found problems both with the design and with the complicated and
time-consuming construction process (Gallene, 2005).
23
Taken from DKP-Propinsi Sumatera Utara. The figures here vary occasionally from those provided by the
District DKPs, but used anyway for consistency across districts. It must also be mentioned that the numbers
provided in the statistical handbooks do not always add up correctly.

28

is also the case of 51 boats provided by the FAO through the DKP, most of which reportedly
lasted less than one year24. Obviously, the dugout canoe possibly the simplest and the most
eco-friendly fishing craft in creation will remain in circulation for a long time to come.

Current numbers of fishing boats

According to the FAO-Nias census, the number of boats in Nias in 2010 is as follows:
Total number
of fishing
boats
3519

25

Non
motorized

Motorized
0.5 - 1 GT

Motorized
1 - 3 GT

Motorized
> 3 GT

Motorised
fibre boat
0.5 - 1 GT

Motorised
fibre boat >3
GT

1766

1558

74

73

42

The non-motorised dugout canoes (jukung) and small timber boats (perahu) together account
for over 50 percent of the total fleet size (it was about 96 percent in 1991), supporting the
field observation that most fishing operations continue to be dominated by non-motorised,
subsistence-oriented operations, although this may be changing in favour of bigger and more
efficient boats. The capacity of the non-motorised boats to (i) carry more nets or iceboxes, (ii)
travel long distances, and (iii) catch (and handle onboard) more fish is extremely limited. The
quantity of fish catches and the returns earned clearly indicate that the incomes from fishing
barely meet the subsistence needs of the fishers.
The fishers indicate that the number of fishing boats has been increasing all along the coast,
especially near the two major towns. On the other hand, they feel, the quantum of fish
landings has remained constant, indicating a reduced catch per effort for individual boats.

4. Fishing gears
The fishers of Nias use a wide diversity of fishing gears, and their usage varies from place to
place. The main fishing methods in Nias are hand-lines, trolling lines, a few long lines
(bottom-set during the day time and surface-drift lining in the night), occasional cast nets and
traps. Gillnets and trammel nets are mostly used by the small motorised boats. In some areas
(Lahewa), gillnets are used by big motorised boats to catch bait for the hook-and-line
operations. Beachseines are mainly operated in the northern parts of Nias Island, although
their numbers have been reportedly decreasing over the years 26. Leatherjackets are caught by
using traps (Galawa) in Saw and Lahewa sub-districts. Octopus is caught by diving and
harpooning in the islands off Lahewa, while live lobsters are caught off Sirombu by diving.
Sea cucumbers are collected by diving and handpicking from depths of 15-30m. More
sophisticated fishing methods by the so-called speedboats using driftnets and drift long
lines (besides trawling and bombing) are employed by the visiting fleets of boats from
Sibolga and Medan. In Teluk Dalam and Pulau Tello area, wooden plank-built fishing vessels
of 15-18 LOA operate large lift-nets targeting anchovies and squids which are attracted by
use of lights.

24

DKP-Kab Nias; also observed physically in Ladara village to the north of Gunung Sitoli.
This figure obviously does not compare with that provided in the official statistics, but is considered more
reliable as it comes from actual field observations.
26
The DKP-Nias statistics of 2008 indicate an increasing trend in beachseines over the years.
25

29

In spite of the existence of diverse fishing methods, hook-and-line remains the predominant
fishing method. This is in keeping with the wide prevalence of canoe-fishing involving one or
two people in the operation. Even in case of motorised boats, such as those operating from
Sirombu and Telukdalam, hook-and-lines and angling are the chief fishing methods. The
second gear by importance is the monofilament gillnet with mesh size varying from 0.5 to 2.8
inches, used mainly to catch small-medium pelagic species.

The DKP-Nias statistics indicate hook-and-line to comprise 61% of the total fishing gears in
the district. The FAO-Nias census provides a similar figure for the whole of Nias as shown in
the following table:
Non-motorised

Motorised

Total

Proportion of
the total nets

Nets (gillnets & trammel nets)

884

942

1826

39

Hooks (hook & longline)

1199

1652

2851

60

Beachseines

18

25

0.55

Diving

16

21

0.45

Total

2106

2617

4723

30

Details of total fish catch (in tonnes) by different fishing gears in 2008 are provided in the
following table27:
Beachseine

Drift
gillnet

Set
gillnet

Boat
liftnet

153.2

522.5

1105.6

17.3

Drift
long
line
313.15

Set
longlines

Hook
and line

Trap

Other
traps

Others

Total

468.17

5510.78

34.96

726.23

142.56

8994.5

Based on this information, over 60 percent of the landings in Nias Regency are caught by
hook-and-line fisheries. While hook-and-line operations are certainly one of the more
sustainable fishing methods anywhere, they are limited by their capacity to catch more fish.
As to the reasons for the preference for hook and lines, the fishers point to (i) the small
capacity of the boat and the manpower28 onboard to handle bigger nets and bigger catches,
(ii) lack of investment for procurement of more efficient gears like gillnets, and (iii) the
difficulties in operating such nets in near-shore waters where the seabed is dotted by coralline
outcrops. Together with potential signs of overfishing in the near-shore waters (indicated by
the falling numbers of beachseines), it is just as well that hook-and-line continues to be
preferred over the others, but this precludes scope for any big surpluses in the fisheries that
will be necessary for exploring new market opportunities.
The main fishing gear dealers of North Sumatera Province distribute their products through
local sub-dealers at Gunung Sitoli, Teluk Dalam and Lahewa. According to the fisheries
census carried out by FAO-Nias, there are 67 retail fishing gear outlets in Nias. Shopkeepers
in the villages buy the required fishing gear material from the latter for retail sale. Gillnets
and trammel nets are directly purchased by the fishers from Sibolga and Medan, through the
intermediation of the export fish traders.

5. Fishing operations
As indicated, fishing is predominantly a small-scale activity in Nias and this applies even to
major fish production areas like Pulau Tello. Fishing by the small boats is generally confined
to short 8-12 hour operations lasting from early morning till afternoon. Gallene (2005)
indicates that sails are much less used than before. Over time, the motorised and mechanised
crafts have increased their fishing time. Most motorised boats (in Sirombu, Telukdalam)
undertake overnight fishing trips of about 18 hours. In Lahewa, the mechanised boats stay at
sea for two-three days fishing on their own. In Gunungsitoli, the mechanised boats act as
mother-boats, herding some 10 non-motorised canoes to distant fishing grounds and
bringing them back at the end of three or four days. In Telukdalam, the mechanised hookand-line boats stay at sea for 3-4 days.
The increase in fishing time by the motorised and mechanised boats (and even the nonmotorised canoes linked to the mother-boat operations) would indicate an increased need for
better handling and ice onboard to reduce spoilage. That most of the fishing operations are
increasingly targeted towards export species also means the need for usage of more ice. The
boats do tend to carry ice onboard in insulated containers, but this is determined largely by
the availability of ice locally and remains an uncertain proposition especially in the northern
(Lahewa, Botolakha) and western (Sirombu) parts of the island. Even in Gunungsitoli and
27

DKP-Kabupaten Nias
Even the mechanized boats hardly ever carry more than three people whether in Gunungsitoli, Telukdalam or
Lahewa.
28

31

Telukdalam, icing is largely confined to the export varieties while those going into local
markets are only cursorily or not at all iced. FAO-Nias census provides the number of boats
carrying iceboxes onboard, shown in the following table:
Non
Motorized

Motorized
0.5 - 1 GT

Motorized
1 - 3 GT

Motorized
> 3 GT

37

420

59

80

Motorised
fibre boats

Total

Total as a
percentage of
fishing fleet in Nias

12

608

17.25%

This shows that there is a long way to go before all boats in Nias can start using ice onboard
and the constraints for wider uptake of onboard ice usage include: access to ice and
appropriate ice containers, issues related to quality and affordability of ice.

6. Fish production
The fish production from Nias since 2003 (in tonnes, rounded off) is provided in the
following table29:
Year
2003
2004
2005
2006
2007

Nias Regency
16715
5707
5707
5992
6466

Nias Selatan
10938
10938
11485
12594

Total
16715
16645
16645
17477
19060

Two important considerations must be kept in mind when looking at the production figures
for Nias Island: the first relates to the large-scale fishing done by the fishing fleets of Sibolga
and Padang from the mainland in the Nias waters30. These fishing boats land their catches at
their home bases, so their catches do not get included in Nias. The second consideration
involves the frequent transfers of fish at sea by local fishers of Pulau Tello area into the
mainland and foreign boats, and this fish too escapes the landings for Nias. Newspaper
reports, citing the Head of Provincial DKP, North Sumatera, suggest that 75 tonnes of marine
catch per month are sold by the fishers of Pulau Tello to foreign boats and these included reef
grouper, snappers, ornamental fish and lobsters.31
What the statistics indicate is that marine fish production accounts for over 99 percent of the
fish produced in the island, making it the only source of fish for all practical purposes. The
small production from rivers and community ponds is consumed within the local area.
Although some coastal aquaculture does exist in parts of the island (see FAO, 2007), its
contribution is negligibly small to the overall production. Activities such as seaweed culture
and cage culture/fattening of grouper have yet to take root and, when they do, it will take
some time before they can have an impact upon the production and the fisheries economy in

29

Taken from Provincial DKP Statistics handbook, 2007 (p.14). It needs to be mentioned that there is a need for
more rigorous and systematic fish landing data collection in Nias.
30
These boats are considered to be a menace to the local fishers as well as to the fragile biodiversity of the coral
ecosystems (because of their fishing practices that include bombing) and the DKP in Nias Selatan has recently
started a joint operation with the marine police to patrol the coastal waters of Pulau-pulau Batu to control them.
31
http://www.economy.dnaberita.com/25%20sept%2009%20Konsumsi%20Ikan.php

32

the island. All this would indicate that Nias will need to depend on marine capture fisheries
as the chief source of income, livelihoods and food for some time to come.
The fish catch statistics for Nias Regency in 2008 give a list of 61 species caught in the local
waters32, of which 21 varieties are caught in excess of 100 tonnes/annum. The list of top 16
species in terms of the volume of landings is given in the following table:
Species
Eastern Little tuna (Tongkol)
Tuna (Tuna)
Skipjack tuna (Cakalang)
Hair tail/ribbonfish (Layur)
Narrow-barred mackerel (Tenggiri)
Flying fish (Ikan Terbang)
Billfish (Layar)
Trevallies (Selar)
Shark (Hiu)
Indian mackerel (Kembung)
Barramundi (Kakap)
Grouper (Kerapu)
Indo-Pacific Kingfish (Tenggiri Papan)
Hard-tail scad (Tetengkek)
Red Snapper (Kakap merah)
Threadfin bream (Kurisi)

Nias Regency (in tonnes)

932.2
875.1
745.6
343.7
278.7
250.4
250.2
217.6
198.5
197.6
187.4
176.5
176.3
167.6
161.4
150.6

One important fish that seems to be missing from the top landing species as well as from the
list of 61 is the leather-jacket (Kampi-kampi) which is a seasonal species, but during the
season, it gluts the landings as well as the markets. An important conclusion that can be
drawn from this table is that a majority of species here, including the top three, are those that
have a strong local demand.

7. Fish sale arrangements on the beach

Fish catches are segregated into export, local and cheap varieties before landing. Groupers,
snappers and other reef fish fall into the export category and there has been a move towards
specifically targeting the export fish in recent times. The local fish mainly consist of mediumsized fish, dominated by different species of tuna. The cheap fish mainly small pelagics
(sardines, anchovies, hair tails) caught in beachseines and the lift-netters are used for
drying. Fish like leatherjackets, which land in glut during certain seasons, have a good
demand in local and export markets, and by the sheer volume of their landings also
frequently upset the markets drastically. In any case, glut landings of any fish are considered
as much a problem as poor landings because of the current market size, which in turn is
determined by the existing infrastructure, preservation and transport facilities. The following
table provides an indicative list of species going into different market supply chains (the
boxes are not watertight; the same fish may be found in more than one box).
Fish that have a strong
local demand
Fish that are mostly

Tuna (various species), hairtails (ribbonfish), trevallies, leather jacket,

mackerel, sardine, sailfish, billfish, shark,
Reef grouper, snapper, seerfish, barracuda, bream, leatherjacket, shrimp,

32

No catches were reported for two other species listed in the table. A study by Dhewani and Marenda (2009) in
Saw and Lahewa sub-districts found 101 fish and non-fish species in the local catches.

33

exported
Fish used for drying &
smoking

squid, octopus, Spanish mackerel

Anchovies, sardines, scad, reef fish

At the landing centre, the export fish are collected by traders or the collection agents who
are waiting on the beach, while the local fish are sold to the motor-cycle and bicycle fish
vendors. The producers are not generally committed to any particular trader (credit being
virtually non-existent), however in most villages, they have only one or two export traders (or
their collection agents) so there is not much choice in terms of sale of the export fish. For the
local fish, the fishers negotiate daily with the motor-cycle traders and bicycle traders, as a
competitive auctioning system does not exist. In Gunungsitoli, the weekly landings of the
big boats (the mother boats) are supposedly auctioned although the process still looks
largely like a negotiated settlement of prices with the buyers on the beach. In the motherboat system, the fishers of different canoes store their catches in the iceboxes carried by the
mother boat after marking their fish (a cut in the tail or a nick in the pectoral fin). The owner
of the mother boat undertakes the auction of the fish on behalf of all the canoes working in
the system and pays the money due to each boat based on their catch after the sale is over.

8. Sharing patterns in fishing

The fishing systems in Nias share an important characteristic of small-scale fisheries around
the world in that the fishing crew receive a share of the returns rather than a fixed wage. The
crews share reportedly varies from species to species, but remains consistent for the most
part. Here an attempt is made to summarise the sharing patterns in different fishing systems.
The non-motorised fishing operations usually involve one person and, where two people are
involved, they would generally belong to the same family. Very rarely, when a person from
outside the family is employed, the returns are shared equally. In the motorised fishing
operations, involving three crewmembers, a third of the gross returns are deducted towards
operational costs and the rest is split into two halves, one for the boat and the other for
sharing among the crew. In the beachseines, the owner of the boat and net receives half the
gross earnings while the crew (numbering about 8 per net) share the rest equally among
themselves. In Gunungsitoli, where mother-boat operations are important, each dugout gets to
retain two-thirds of the returns from the sale of its catch, while the owner of the mother boat
retains one-third. In the motorised boat operations in Lahewa, the returns are shared between
the owner, the captain and each of the two crewmembers in roughly 2:1 :1 ratio, and it is
said that a crewmembers share from a 3-4 day fishing trip could be about Rp.1 million. In
most cases, if not all, the fishers tend to retain a part of the catch for their own consumption.
In case of beachseines (and probably liftnets), the fishers also retain a small quantity of the
smaller fish for drying both for home consumption as well as for sale.

9. Fisheries Management
Currently, there is no effective fisheries management programme and any efforts to improve
the post-harvest and market access conditions for the local fish produce must necessarily be
predicated upon the existence of a strong and well-functioning fisheries management system.
The ADB-funded COREMAP-II focuses upon rehabilitation of the coral reefs in Nias. In
Nias Regency, COREMAP II has been implemented on the west and the north coasts,
including Sirombu, Lahewa and Saw; while for Nias Selatan, the programme is
implemented in Pulau-pulau Batu (Hibala) and Telukdalam sub-districts.

34

10. Suggested actions relating to fisheries management

Fresh resource survey: An important constraint for assessing the health of the fisheries off Nias
waters is the lack of stock assessment for various species and reliable information on their current
33
level of utilisation . Any assessment of the health of the resources has perforce to depend on
anecdotal evidence, visual observations and proxy indicators (such as the decline in beachseines or
shift of dugout canoes to offshore waters as indicators of declining productivity of the near shore
fisheries). A new fish resource survey is suggested to estimate the resource potential for different
species and their current levels of utilisation, which will be important to decide upon appropriate policy
choices.
Management systems with community participation: There is a need to develop a fisheries
management strategy which recognises the rights of the Nias fishers to the waters in which they fish
and involves them in decision-making processes as equal partners. Once a community-based comanagement system is developed, area-wise fisheries management plans will need to be drawn up.
Each fisheries management plan should focus on (i) efficient and sustainable utilisation of the
resources and (ii) their equitable allocation to different stakeholders. However, as FAO (2007)
suggests, local stewardship principles and co-management approaches are likely to emerge as
attractive options only after resource users start to improve their profit from the use of the resources.
Therefore, there is a need to focus on the fishers livelihoods to produce the required momentum
towards more sustainable resource use practices.
Control IUU fishing: There is a need to undertake effective measures to curtail poaching by the
fishing boats from the mainland and other countries in Nias waters, which exploit the local resources
at the cost of depriving the local fishers of the same. There is also a strong need to curb illegal,
unreported and unregulated (IUU) fishing activities, including the destructive fishing methods like
bombing which is fairly widespread in Nias waters (by the local fishermen and by the visiting fishing
fleets from other areas).
Regular data collection and monitoring: Finally, there is need for regular monitoring and data
collection of fish catches and the catch-and-effort data to support the fisheries management plans and
to evolve appropriate policy action.

33

Gallene (2005) notes that the last resource survey is more than 20 years old.

35

5. THE MARKET SUPPLY CHAINS IN NIAS

Market supply chains describe the different pathways in which the fish get to be distributed
from the producers through to the final consumers. The fish market chains in Nias tend to be
rather short, with the exception of the distant (export) supply chain, which is probably too
long and too complicated. The number of intermediate stages in a supply chain depends on
the species, the level of market development, and the location of consumer in relation to the
producer. In this section, we attempt a description of the key market supply chains in Nias,
the people involved and the technical, economic, human, social and institutional context of
each supply chain. The purpose of the analysis is (i) to understand where critical
gaps/constraints exist in the supply chain (critical control points) that have implications on
the post-harvest and marketing aspects (ii) to assess the possible ways to address them
sustainably and equitably (especially from the local perspective), and (iii) to prioritise the
most important opportunities for intervention.
There are three supply chains in Nias fisheries. These are:

Local fresh fish supply, covering retail sale at markets (daily and weekly), bicycle fish
sellers (men and women), motorcycle traders (covering up to 30 km radius)
Distant market (export) supply, for both fresh and live fish34, covering Sibolga, Padang
and Medan as immediate destinations, reaching Jakarta and other urban centres within
Indonesia as well as Singapore, Malaysia and other countries.
Processed fish supply, covering salted & dried fish, smoked fish and boiled fish
production and distribution; also includes the imported dried fish supplies from Sibolga,
Padang and Pulau Tello. For convenience, the dried and smoked fish supply chains have
been discussed separately.

Reduction of fish into fishmeal for animal feed is insignificant in Nias; the lack of bycatch in
any of the existing fisheries (together with the absence of trawling) would mean that there is
really very little catch that cannot be consumed; tiny quantities of spoiled fish are used to
feed pigs. There is no supply chain involving value-added products of any kind and no
processing industry to undertake some basic value-addition to shrimp.

1. Local fresh fish supply

Brief description of the activity
This is by far the most important of all supply chains in Nias, accounting for over about 60
percent35 of the total landings on the island.36 The main pathways for distribution are the
mobile fish vendors, travelling by motor cycle (accounting for up to 70-80 percent of the total
volumes traded in this supply chain), by bicycle, and less frequently by public buses.
Besides, stationary fish trade (retail markets, wayside kiosks) is a major source of supply of

34

Given several outstanding differences between the export fresh fish trade and the live fish trade, it is probably
necessary to treat them as two distinct supply chains, but given the small size of the live fish trade hopefully
justifies its inclusion in the export supply chain.
35
The proportion of fish going into different supply chains are arrived at based on interviews with different
stakeholders in the fisheries sector and these are indicative at best; more work is required to quantify the fish
supplies to different market chains.
36
With the exception of Pulau Tello where the export and processed supplies are higher than the local supply.

36

fresh fish to local consumers. A few traders also carry fish hanging on poles carried across
their shoulders and go by walk for door-to-door sale in a particular area. The supply chain has
been showing a growing trend over the years with availability of supplies and the lack of
proper transport/preservation systems being the main constraints for further growth.

Local fresh fish market supply

chain

Door-todoor

Bicycle
trader

Weekly
market

Producers

Retail
market

Motorcycle
trader

Roadside
retail

Consumer
s

Key stakeholders and their socioeconomic context

The key stakeholders in this supply chain are the motor-cycle vendors and, to a lesser extent,
bicycle fish vendors. Besides, there are a number of stationary fish traders operating in the
retail markets or running their road-side fish stalls. The motor-cycle vendors can be
considered to be the second biggest group of stakeholders in Nias fisheries (after the
producers). Gunungsitoli and Telukdalam have the largest number of motorcycle vendors
visiting the local landing centres and the markets, and together they number about 80-100.
Smaller landing centres like Lahewa, Sirombu and Botolakha have about 20-30 motorcycle
vendors, while still smaller landing centres like Afulu, Lolowau, and Ladara receive about 510 motorcycle vendors. Altogether, there are about 400 motorcycle vendors in Nias. The
bicycle fish vendors number another 200-250 (about 50 of these are reported to be working in
Gunungsitoli area). The numbers of stationary fish retailers (including those operating fish
kiosks) is not known, but can be in the range of 200-300.
In Gunungsitoli, the bicycle fish vendors are women, who come from a number of
neighbouring villages where they return at the end of the days sale. Some of the women fish
vendors are the wives of fishermen and carry their husbands catch to the markets. In all other
areas, local fresh fish trade is carried out by men. Usually, it is rare to see old people involved
in the mobile fish trade operations.
Most of the women fish vendors and the motorcycle traders have small plots of agricultural
land and look after them when fishing is slack (which is for about two months in a year), but
fish trade is their primary occupation. Given the low levels of investment and returns, it can
be easily ascertained that a majority of them are poor in terms of incomes or of wellbeing
(which includes quality of life concerns). The stationary fish traders (in the retail markets and
road-side fish stalls) are relatively better off, as evidenced by their higher investments and the
variety and quality of fish they sell.

37

Consumers of fresh fish belong to all sections of society, their choice of fish often providing
a clue to their social and economic status. In coastal areas, fish can be said to be the most
important source of protein for a majority of consumers including the fishers themselves.

Fish used for local fresh fish sale

Three varieties of fish usually go into the local fresh fish supplies:

Smaller and cheaper fish, like anchovies, sardines, little tunnies

Fish like tuna that have a good demand in local markets and pay a higher price locally
than in the distant markets
Export species that could not be exported because of poor quality or lacking the
minimum quantities required for a shipment

A motor cycle trader purchases about 50 kg of fish per day while the bicycle fish vendors buy
about 20-25 kg per day. The stationary fish traders in Gunungsitoli market sell up to 150-300
kg while the wayside kiosks probably have a capacity of about 100kg. There is anecdotal
evidence that the local demand is quite high (also less risky), and that a few species
including tuna, which is the top fish in terms of total landings in Nias have a much better
price realisation in local markets than elsewhere.

Sources of supply
i.

Local supplies

The most basic way of fish supply for local consumption involves the fishers taking a part of
their catch to their homes. Although this does not come into the markets, own consumption
does form a sizeable part of the fish consumed locally.
Fish for local sale are usually procured from the same landing centres every day. Even in
Gunungsitoli where a number of landing centres exist, the mobile fish traders obtain their
supplies from one landing centre only except occasionally when good landings are expected
at a different landing centre (e.g., the weekend big boat landings). There are no restrictions on
traders visiting different landing centres, but given the size of the catches at any one landing
centre and also the size of the demand, it is probably a way to keep competition at bay. Since
fishing is carried out round the year in Nias, fish traders are assured of supplies every day.
The two advantages of buying from the same landing centre every day are two: having good
relations with the fishermen and reducing competition at the landing centre. This strategy, as
will be discussed, is applied in the markets too. The relations with the fishermen help in
securing fish on credit occasionally, a privilege that a newcomer does not have.
The women vendors in Gunungsitoli and in places like Hilinamazihona have another facility:
they neednt pay for the fish at the time of purchase. Once the transaction is agreed upon 37,
the women are allowed to take the fish for sale and pay the fishermens due after successfully
completing the sale, usually on the next day, although sometimes it may take longer, up to a

37

In case of Hilinamazihona, the unit of sale is 5-6 fish strung together in a bundle and the fishers sell the fish as
bundles at a fixed price to the women traders who repay the fishers after completing their sale.

38

week. No charges are levied for delayed payment. In other words, the bicycle fish sellers can
undertake business with little or no working capital. This facility is not extended to the
motorcycle traders, probably because their bigger volumes of trade would create immediate
cash-flow problems for the fishers. Over time, with competition, the women complain that
the fishers are not as forthcoming as before in allowing them to buy fish on credit.
The bigger retail sellers in towns like Gunungsitoli have arrangements with local fishers to
supply fish to them directly at mutually agreed prices and have it transported to the market in
minivans. The smaller traders in retail trade obtain their fish at the landing centre and arrange
to have it transported by motorcycle-rickshaws. The roadside kiosks, generally located in
bigger towns and on the main roads, source their fish in three ways: (i) by directly purchasing
from the landing centre; (ii) by having arrangements with fishers or motorcycle traders to
supply fish regularly and (iii) by sourcing fish from the export traders who are unable to send
their product to the mainland for any reason. In fact, most export traders tend to have a fish
stall of their own in their premises, so they can sell the un-exported fish themselves.
The stationary traders, being fixed to one location, have better access to fish on credit basis
from the fishers. Also, they have a bigger capacity to take more fish when cheaply available
and store them overnight unlike the mobile traders who are constrained by their ability to
carry more than a certain quantity of fish.
The unit of purchase at the landing centre and that of sale at the market varies from species to
species, but the medium-sized fish (which constitute the bulk of the sale) and the big fish are
purchased based on the numbers (rather than weight). Smaller fish are bought and sold by
eye-estimation, and bigger fish are sold by weight at the markets.
ii.

Fish imports from Pulau Tello

Motorcycle traders in Telukdalam obtain their supplies not only from the local landings, but
also from the fish imported from Pulau Tello Island. There are two major fish importerdistributors in Telukdalam who obtain their supplies from Pulau Tello, which sends its fish
exports directly to Sibolga and Padang and its cheaper fish to Telukdalam and, in both cases,
the organisation of trade is strikingly similar, right down to drawing upon family connections
to arrange supply and distribution. There are about 10 people on Pulau Tello who are
involved in the trade to Telukdalam. Each of the two distributors in Telukdalam deals in
about 3-5 boxes38 of fish (each box approximately holding some 150 kg of fish) twice a
week, which means a total import of about 1-1.5t/week from Pulau Tello. Occasionally, the
number of boxes goes up to 10 boxes per distributor (3t in all), but it cannot go beyond that
limit because the local markets cannot take anymore.
The supplies from Pulau Tello are sent in ice (home freezer-made), but the local distributor
has to re-ice it (again, with ice from home freezers) before selling it to the motorcycle traders,
who carry it into the central parts of the island for sale. There is no sale of this fish in
Telukdalam itself because the local consumers have access to fresh fish supplies from the
local landing centres and have no need for the less fresh fish from Pulau Tello. Consequently,

38

In export transactions from Nias, the unit of measurement is a box the standard box being a HDPE box of
about 200 kg capacity, carrying about 120-150 kg of fish, the rest being taken by ice. The transactions of a trader
are given in the number of boxes.

39

the fish from Pulau Tello are probably the only source of fresh supplies to some of the
interior and remote villages in southern Nias.
It is reported that, about once a month, some quantity of fresh fish mainly Rastrelliger spp
and little tuna are brought from Sibolga by ferry to Gunungsitoli, from where they get
distributed to different parts of the island. This happens when the fish prices in Sibolga are
found to be cheaper than the prevailing rates in Nias and the local exporters arrange for these
fish to be brought back in the iceboxes returning after supplying fish to Sibolga. The traders
cant bring bigger quantities, or sell them in Gunungsitoli market itself, for fear of depressing
the local prices!
iii.

Export fish in the local markets

Ice and transport are the major constraints for sending more fish to export markets; but there
is another, equally important, constraint: frequently the quantity of landings are too small to
make it worth sending to the export market. Even in bigger centres like Gunungsitoli, the
traders hold on to the small quantities of export fish in ice for a few days, and if the required
quantities are still not available, decide to sell the fish in local markets rather than risk the
whole consignment. Thus, it is not uncommon to see good quantities of cuttlefish, shrimp and
even lobsters (dead, hence not exportable) in the markets. In smaller centres like Sirombu, the
landings of export fish can be often so low as to make it uneconomical to send them to
Gunungsitoli for onward distribution. It also happens that the fish prices in export markets
like Sibolga sometimes fall so low that it is more economical to sell the fish in local markets
than export them anymore.

Markets
While the fresh fish supply chain is quite strong and accounts for a good share of the landings
on the island, there is evidence in some places like Sirombu that the current level of supplies
is adequate to satisfy the demand without putting stress on the available resources (transport,
ice, and manpower). Without access to better support services, the fishers find bulk landings
to be almost as big a problem as poor landings; any change in quantity of supplies leads to
immediate fluctuations in the markets and good landings quickly translate into depressed
values for fish. Whenever big catches of fish are expected, the fishers of Sirombu are
reported to prefer fishing for shorter durations and on alternate days in order to control the
flow of fish supplies into the market to ensure their stability.
i.

Fresh fish sale in urban areas

The door-to-door sellers have a fixed route covering the same streets and households
regularly; this has the twin advantages of helping to develop trust with the buyers and of
avoiding competition. Such relationships are sometimes reinforced by accepting payment on
credit. The door-to-door sellers, if they find any leftovers after finishing their beat, go to the
local retail market for general sale. If some quantity is still unsold, the traders resort to
distress sale. This means that the cost of fish can suddenly slump at the end of a market day 39.

39

There is a particular class of customers - much hated by the traders - who actually wait until late in the evening
for the traders to start distress sales so they could buy the fish cheaper. In fact, this vested interest in distress
sales is an important line of inquiry in itself because the people who fall into this category are the poorest of the
poor, and if we take the fish out of the distress sale category, these people might lose their access to fish. But

40

Thus, for instance, a bicycle fish seller who purchased horse mackerels at Rp.6,000 for three
fish, would sell the same at Rp.10,000 until late evening, when the price drops to Rp.5,000.
Bicycle fish traders complain that up to 25 percent of their trading would involve distress
sales. This would be partly due to lack of access to ice and iceboxes, but also due to being
constrained for working capital for the next cycle of trade. Rarely, these traders carry the
unsold fish back to their homes and keep it in small quantity of ice overnight and try to sell it
the next day. Fish that remains unsold for more than two days is salted and dried for home
consumption.
The daily retail markets in the coastal areas like Gunungsitoli, Lahewa, Sirombu and
Telukdalam are the most important avenue for fresh fish sale in bigger towns.
Gunungsitoli retail fish market
In Gunungsitoli, which boasts the biggest fresh fish market in Nias, the retail fish market has some 25
big traders who deal in an average of 150-300 kg of fish and another 30 small traders who deal in an
40
average of 50-70 kg per day . The small traders essentially comprise of motorcycle and bicycle fish
vendors, who reach the market after finishing their rounds in the town. The bigger traders, who are
stationary, obtain their supplies by motor-rickshaws and transport vehicles. There are two varieties of
small traders: those who deal in a mix of big and small fish and those who deal in small fish alone.
These distinctions among the traders are useful to understand their consumer profiles as well: the big
traders generally deal in big and more expensive fish and get to serve the urban middle class
consumers, while one category of the small traders (dealing in mixed species) caters to the working
classes and the last category (dealing in small fish, sold in heaps) targets the poorest sections of the
society. The range of fish sold in Gunungsitoli market is breathtakingly diverse and the prices too are
comparable to those paid by Sibolga traders. However, the capacity of the market to sell beyond a
particular quantity is limited thus leading to distress sales, as discussed.
The visit to Gunungsitoli market (to get an eye-estimate of the total supply into local markets) and to
the ferry leaving for Sibolga on two consecutive evenings (to get an eye estimate of the quantity of
fish leaving for export trade) provided a rough-and-dirty figure of 7t in the former as against 19 boxes
(3 t) in the latter, validating the fishers contention that 60 percent of the fish in the area are locally
consumed while 30 percent are exported.

A third, and fairly widespread, mechanism for fish sale is through road-side fish stalls. The
fish are displayed on tables (an occasional sprinkling of water is the only post-harvest
measure against the hordes of blowflies and sunlight) and are sold by weight to the passing
customers. The solitary and scattered existence of the road-side fish stalls, together with the
diverse range of arrangements they have for procurement and sale, make it difficult to obtain
a good picture of their role in local markets.
ii.

Fresh fish sale in the rural areas

The sale of fresh fish in rural areas, especially in the interior of the island, is mostly done by
the motorcycle fish vendors who travel up to 30-50 km inland. There are two ways of selling
their fish: by door-to-door sale and by visiting the weekly markets. The door-to-door sale
arrangements are largely the same as for their urban counterparts: the traders visit particular

then, the problem is that the traders themselves are frequently very poor themselves and one needs to be
conscious about the livelihood implications of the distress sales.
40
The numbers are obtained from a visit to the Gunungsitoli market on a weekend day, and may vary from time
to time; besides the big market, Gunungsitoli has at least one other market where the number of traders as well
as the volumes of fish traded is comparatively less.

41

villages regularly but the routine may also vary. The sale is done within two hours and the
traders get home by the evening. In Hilinamazihona, the women traders carry fish strung
together in bundles of 5-6 each and hung from a pole carried on the shoulder and go by walk
to the neighbouring villages for door-to-door sale. In Pulau Tello, and probably elsewhere,
children undertake the fish sale by carrying their fathers catch on their shoulders and going
from door-to-door. Some of the traders in retail fish markets are women. The unit of sale is
the number of fish usually, a bunch of fish are strung together in a bundle and sold as a unit.
Each village has a particular market day in the week and these market days are arranged in
such a way that they fall on different days in adjacent villages so (i) the traders can get to
visit more markets and (ii) the local communities have regular access to a market in their
neighbourhood. The weekly markets are a major occasion in the rural areas, giving the village
a festive atmosphere and, for the outsiders, a rare opportunity to see crowds in Nias. Besides
fish (which constitute a small proportion of the commodities on display), a range of goods are
sold in the weekly market ranging from food grains, vegetables, sweetmeats and savouries to
clothes, footwear, and household articles. The markets begin early in the morning and are
over by midday: the teeming market place wears a completely deserted look within a few
hours! A number of fish sellers visit a market irrespective of whether it is in their territory or
not the demand is big enough to accommodate many traders. The sale of fish in the weekly
markets is by weight or by eye estimation (depending on the species) and all transactions
involve ready payment.

Technology
The level of post-harvest technology used in the supply chain is fairly basic. The motorcycle
traders carry fish in plastic containers or in Styrofoam boxes, tied to the back of the
motorcycle. Ice, when used, is mostly from the refrigerators and both its usage and the
quantity are strictly rationed. The traders who carry fish over long distances of up to 30 km
from the landing centre generally use ice, those selling at shorter distances preferring to avoid
it altogether. The quantity of ice used works out to about 1 kg for every 3 kg of fish. The
Styrofoam boxes reportedly last between 3-5 months and are locally available.
The bicycle traders hang up their fish on hooks/nails driven into sticks arranged horizontally
at the front and the back of the cycle, which makes for a good display of the fish (to the
consumers as well as to the hot sun and flies). The bicycle traders do not use ice for transport
and sale, but in places like Gunungsitoli, bigger retail fish traders store unsold fish in
insulated HDPE41 boxes for sale on the following day. The roadside fish stalls also have
HDPE iceboxes and the traders use these to keep their stock as well as those unsold at the end
of the day; the maximum period that the fish tend to be kept on display is 2-3 days (although
it varies from species to species; some, according to the traders, remain good up to 4 days).
At the end of this period the fish gets to be thrown away because it would be too spoiled to be
dried. The traders estimate that about 15 percent of the fish gets to be thrown away. In
Hilinamazihona, during good fishing season, the women fish sellers throw away or feed the
pigs with about 20-30 percent of the fish.

41

High Density Poly-ethylene (HDPE) boxes are pre-fabricated and are available in different sizes for off-theshelf purchase.

42

Some of the bicycle traders (and other traders as well) received HDPE iceboxes as part of the
post-earthquake rehabilitation programmes, which they keep at home (they are too bulky to
be carried around on bicycles), and use them only occasionally.
Besides access to ice42 and working capital needs, consumer preferences play a critical role in
the avoidance of ice by the local fish sellers. The notion that iced fish equates to spoiled fish
is rather deep-rooted among many consumers, which makes it difficult for the traders to ice
their fish even when available. The motorcycle fish vendors complain that, even where there
is no a discrimination against iced fish, there is no appreciation in value if fish are iced.
As a consequence of these various factors, a sizeable proportion of the fish used for local
consumption (or served in the hotels) would find it difficult to meet many of the basic quality
criteria, in spite of the fact that it was caught in the local waters. The key technological need
of the fish traders is having sustainable access to good insulated iceboxes, designed
specifically to meet their need to keep fish for transport, sale and overnight storage; the boxes
should be such that they should sit comfortably on the motorcycle (about 50 kg capacity) and
the bicycle (about 20-30 kg capacity), so they can be carried around without extra burden.

Infrastructure for local fresh fish sale

Most towns have public retail markets where space is made for fish traders to sell their fish.
In Gunungsitoli, the fish markets are set up outside the main market43, at the street level,
which might increase their visibility (in fact, its difficult to go inside the market without
walking across a long chain of fish stalls), but also raises concerns about the hygiene. The
Provincial DKP of North Sumatera has also set up another market near the quayside in
Gunungsitoli town, but it is used as a pig market. Similarly, new roadside markets established
in places like Telukdalam and Pulau Tello remain unutilised because they are out of the way
for normal fish trade44.
The physical conditions of the markets are not much worse than fish markets elsewhere in the
developing world. However, they can certainly do with more hygienic surroundings, better
fish handling, preservation and marketing practices. Most fish markets suffer from lack of
access to freshwater, waste disposal, sanitation and sewage disposal systems, besides
exposure to sunlight, dust, infestation and traffic. Consumer behaviour at the markets is
equally important and will need to be taken into account when suggesting improvements to
the market infrastructure.
Critical need in this area appears to be improving hygiene at the markets, which may require
awareness generation among the traders, municipal authorities and the consumers themselves.
This can be done through posters, audio-video materials, extension leaflets, and other
extension activities, besides a more intensive capacity building programme targeting the DKP
and the municipal staff, and the fish traders.

42

Not all traders have problems with access to ice: many have ready access to refrigerator-made ice which,
given the small quantities that the traders require (seldom exceeding 5-10 kg), is not a problem to obtain in some
locations.
43
The government has made provision for fish stalls inside the Gunungsitoli market, but the traders prefer to sell
fish outside.
44
At the new roadside market set up near Telukdalam, which is set back from the main road by a few yards, the
traders avoid using the facility, but have their own makeshift arrangements in front of it and closer to the road to
sell their fish.

43

Investments and returns

An average motorcycle trader invests about Rp.500,000-600,000 and earns a gross income of
Rp.100,000-150,000, which after deduction of the cost of fuel, ice, and subsistence
expenses leaves him with a margin of Rp.60,000-75,000. The investments of motorcycle
traders operating from smaller landing centres like Sirombu and Afulu are necessarily smaller
while the cost of ice and fuel is necessarily higher (diesel costs Rp.1000 higher per litre in
Sirombu than it does in Gunungsitoli), hence their incomes tend to be less about Rp.
40,000-50,000 a day.
The average investment of a bicycle fish trader in Gunungsitoli ranges from Rp.100,000 to
200,000 per day, and the average daily income is about Rp.25,000 which can go up to
Rp.50,000. The big retail traders in Gunungsitoli markets have much bigger investments of
about Rp. 4,000,000 (at an average of 200 kg fish @ Rp.20000) and higher returns too.

Access to investment and credit

The motorcycle traders and the bicycle fish vendors are not organised into groups based on
their livelihood activity. Some of them are members of the village level farmers and fisher
groups, but these are considered to be largely ineffectual45. Some of the groups have been
formed after the earthquake in the hopes of receiving government support and they remain
dormant for all practical purposes.
Apart from the informal credit support they receive from the fishermen who provide fish on a
deferred payment basis, there do not appear to be any other sources of credit accessible to
these traders. All the capital investment in the trade motorcycles and other tools of the trade
comes from their own resources.
The traders highlight their need for credit to (i) keep up with the competition at the landing
centres, which is reflected in higher costs of procurement of fish; (ii) to be able to store their
unsold fish from one day till the next instead of resorting to distress sale to meet the need for
working capital for the next cycle; and (iii) to be able to invest in iceboxes and ice for
overnight storage of fish.
Summary of issues: local fresh fish supply chain
Main problems:

Spoilage of fish due to lack of appropriate insulated box for carrying on the bikes;
Lack of access to ice in rural areas (especially on the north and west coasts);
Distress sale of fish at the end of the day for lack of preservation facilities (up to 25 percent)
Lack of investment to withstand competition for fish at the landing centres and to pay for
increasing fuel costs
No access to lending from formal and informal sources

Suggested action:

Design, test and promote iceboxes for carrying on motorcycles (50-60kg capacity) and bicycles

45

Given that they were considered ineffectual in 1991 itself (BOBP, 1991), this is probably no more than flogging
a dead horse.

44

(20kg); also explore readily available models from regular manufacturers.

Set up permanent iceboxes (PIBs) of 1t capacity or smaller movable insulated iceboxes of 300400kg capacity (one or more numbers in each location depending on demand) in selected landing
centres to make ice available to the local fishers and fish sellers, and make arrangements for their
management and maintenance
Arrangements with the ice plants in Gunungsitoli or Telukdalam to supply the required quantities
of ice on a daily/weekly basis.
Set up traders self-help groups and start a savings-and-credit programme, provide support with
(i) seed capital for revolving; (ii) capacity building in management of group-based activities; (iii)
monitoring and motivation; and (iv) establishing linkages with government and formal lending
agencies.

Potential benefits

Reduced losses of about 20 percent and avoidance of distress sale

Possibility of ice cost being cheaper with bulk purchase
Ability to purchase more fish and travel to more areas for sale
Possible increase in incomes by up to 25 percent
Improved quality fish for consumers
Increased social capital and sense of wellbeing from being members in the community group.

2. Distant (export) market supply

Brief description of the activity
Export supply chains are the more sophisticated and, in terms of unit value realisation, more
rewarding, than any other supply chain in Nias fisheries. Up to 30 percent of the fish landed
in Nias is reportedly exported in iced or live condition46 to Sibolga, Padang and Medan as
immediate destinations, finally reaching Jakarta and other urban centres within Indonesia as
well as Singapore, Malaysia and other countries.
The current trends indicate that the proportion of fish exports is increasing in Nias, however,
entry into the activity requires high capital investment, strong market linkages and consistent
(and good) supply base, which are currently not available to most people. In the short term,
there is potential for marginal increases in quantity (and significant increase in value) through
better post-harvest systems; sizeable increases in quantity can however come only from big
increases in production. There is an increasing tendency among boat owners to target export
fish, which might increase supplies in future. Cage culture for grouper and other reef fish
shows promise as a potential area for increasing fish exports from Nias, but this will require
some time.

Key stakeholders in the supply chain

The key stakeholders in this supply chain are the export traders, who are primarily of Chinese
origin and based in Gunungsitoli, Telukdalam and Pulau Tello. In all, there are about 6 export
traders in Gunungsitoli, two in Telukdalam and only one in Pulau Tello, besides a number of
smaller traders and collection agents in the different landing centres. Altogether the total
number of traders in this supply chain does not exceed 25 for the whole island.
46

Given the small size of live fish exports involving lobsters and groupers - in the overall trade in Nias, the
information concerning them is provided in boxes.

45

Export/distant market fish supply chain

North
Sumatera
Independent
trader
Export
trader

Producers
Collection
agent

Sibolga

Jakarta
etc.

Foreign
markets

Besides the export traders, there are also a few independent traders who send their catches to
Sibolga when there are good landings or route them through the bigger exporters when the
quantities are not big enough. Yet another kind of independent traders (e.g., in Sirombu)
confine their trade to supplying fish to the export traders in Gunungsitoli. Some big boat
owners in Gunungsitoli are reported to send their fish directly to Sibolga when the catches are
good to avoid routing them through the local export traders.
The variety of ancillary stakeholders in the export sector is higher than in the other supply
chains, although their actual numbers might be small. These include the fish collection agents
in the fish landing centres who receive a commission from the export-traders based on the
quantities of fish supplied. One trader in Gunungsitoli has agents in Botolakha, Tuhemberua,
Bozihona, Sirombu and Lahewa besides Gunungsitoli itself.47 The other ancillary workers
include transporters of fish (from the landing centre to the packing yard, from the packing
yard to the Port) and the packing assistants (procuring and crushing ice, packing fish and ice).
These are generally wage earners. And once the fish reach Sibolga, the number of primary
and ancillary stakeholders in the supply chain increases manifold and remains unknown.
The export traders are all men the women might help in packing, but are not a visible
group. In terms of economic status, the traders themselves are definitely one of the richer
stakeholders in the sector48. On the other hand, the ancillary workers collection agents,
transporters and packing assistants are generally poor.

Fish used for export market supply

It has to be noted that only certain species of fish (mainly large demersals and reef fish) are in
demand in the export markets and that it is not correct to assume that more of the locally
47

One collection agent in Sirombu claimed to be procuring fish directly for a Sibolga trader, but this does not
seem to be correct because no direct Sibolga trade connection was found elsewhere and also because the
Sirombu catches are not that big as to interest traders from Sibolga, especially as there is already an
independent trader in Sirombu supplying fish to Gunungsitoli traders.
48
This is in comparison with other fisheries stakeholders in Nias, but when compared with their counterparts on
the mainland, the Nias fish exporters certainly lag behind in several respects.

46

consumed fish would go to export markets if only ice (or some other pre-requisites) are
available. Further increase in export potential would only come from increased catches of the
specific exported species and not necessarily from the existing local supplies49. True, better
post-harvest systems could increase the volume of export trade, but this might be less in
terms of quantity and more in terms of unit value realisation. The sole exporter in Pulau Tello
suggests that the local infrastructure is geared to cope with 10t of product per day, but the
average landings range from one to two tons, so the problem is one of not having sufficient
fish for sale.
The chief varieties of fish exported from Nias include reef fish such as grouper and snapper,
leatherjackets, shrimp, crab, squid, cuttlefish, and octopus. The groupers are kept alive in
cages and the lobsters in cement containers and these are subsequently collected by boat from
Sibolga, Telukdalam or exported by air. Octopus of about 1 tonne is landed per week in
Lahewa, which is packed in ice (along with some salt) and sent to Sibolga. Although tuna
(especially the smaller varieties called baby tuna) have a bigger market in Nias than in
Sibolga and are retained in the local supply chain, sometimes it does get to be sent to Sibolga
either because the price of tuna in Sibolga has gone up suddenly or glut landings of tuna have
depressed the local prices to an extent that it becomes profitable to send them to Sibolga.
Nine community-based seaweed (Euchmema cottonii) production units were established in
Lahewa as part of an IFC initiative, but field visits showed that they had not been successful.
The apparent lack of a plan and funding for harvest, drying, storing and marketing meant that
seaweed cultivation has remained economically unviable from the beginning (see also FAO,
2007).
Grouper fattening and trade in Nias
Cage culture for groupers and other coral fish is an activity that has generated much enthusiasm on
the island, and grouper fattening takes place in Lahewa, Afulu, Saw, Pulau-pulau Batu and Hibala.
The fish is caught by hook & lines and fish traps, and small individuals are grown on in cages until
they reach marketable size. Currently, in Pulau Tello, live groupers are stocked in floating cages
anchored off the coast where they are grown for 3-4 months. Small fish (anchovies) caught with traps
are used to feed the groupers in the cages. It is reported that nowadays grouper hatchlings are
brought from hatcheries in Lampung province in south Sumatera, Situbondo in Jawa, and Gondol in
Bali and stocked in the floating cages in Pulau Tello. Usually, about 350 younglings are stocked in a
cage measuring 4x4m, with a depth of 5m. The grouper hatchery set up by the Provincial DKP of
North Sumatera with support from ADB-ETESP project at Desa Fino is not operational. Poor access
to electricity reportedly affected its operations and, as of June 2010, the hatchery is involved in
producing catfish seedlings as part of the COREMAP livelihood support programme to encourage
coastal communities to grow catfish in their backyards. In Pulau Tello, a Hong Kong-based collector
boat (80GRT) comes by once in a while to collect the live groupers which are transferred to a wellequipped tank inside the boat. The boat collects groupers from other parts of Indonesia and carries
them to Singapore and Hong Kong for sale. The numbers of cage culture units and the quantities of
production are not known, but going by the emerging trends in grouper fattening in Pulau Tello, the
activity seems to hold potential for further increase in production, export and employment generation.
This might be further improved when (if?) the DKPs grouper hatchery becomes successfully
operational. That cage culture is taken up fairly easily with existing resources and does not raise
issues of land ownership as in the case of coastal aquaculture would imply that the poorer people
might be able to undertake the activity with limited support, but this needs to be explored further. Also
to be explored are issues related to the access to live groupers for stocking as well as the economic
and biological sustainability of the activity.

49

Apart from improving the fishing potential of the current systems, the Nias fishers suggest controlling the
destructive fishing practices of mainland trawlers as the way to increase the production of export-quality fish.

47

The average quantity of fish exported daily by all traders from Gunungsitoli is about 4-6
boxes (about 600-900kg), which goes up to 20 boxes (3 t) over the weekends when the big
boats bring their catches to the shore, and even up to 50 boxes (7.5 t) when seasonal glut
landings of leatherjackets occur in the catches. During visits to the Gunungsitoli port on a
Friday and a Saturday, the study team observed 19 boxes and 5 boxes respectively being sent
to Sibolga. The export trader in Pulau Tello (Sihan) sends about 2t of fish a day to Sibolga
using his own boats. The two exporters in Telukdalam are said to export about 3t per week to
Sibolga, but the quantity fluctuates from season to season. The average quantity of fish
exported by individual traders varies. In Gunungsitoli, usually, each trader sends about 1-2
boxes (150-300kg) every day, which goes to 4-6 boxes (600-900kg) over the weekend. The
exporters in Telukdalam send about 35 boxes of fish each to Sibolga, which works out to 11.5t per week.
Live lobster trade in Nias
There are four or five species of lobster caught in Nias waters and the size of the individual lobsters
varies from 350 gm up to 2 kg. Live lobsters are collected from Afulu, Sirombu and the Hinako Island
group by fishers diving in the water using a hand net, and collection agents in Afulu, Sirombu, and
Lahewa bring them to the lobster acclimatisation units, of which there are three in Nias: one in
Gunungsitoli and two in Telukdalam. There is reported to be much competition between the three
units to obtain live lobster supplies.
In the lobster acclimatisation unit in Gunungsitoli, live lobsters are stocked for three days in cement
ponds, using well oxygenated water before being sent off to Medan by air. About 50 kg of lobsters are
sent in each consignment to Medan, where the local cargo handling agents ensure the onward
shipment to Jakarta or Singapore. Generally there will be one or two consignments in a week. The
lobster, when packed for transport, remains alive for up to 24 hours and the risk of mortality is about 5
percent.
The Telukdalam traders are reported to rear the lobsters in cages for eventual transport to Padang
and send about 1 tonne of live lobsters every three months to Padang by sea.
The lobster and grouper culture units provide employment to some people. The Gunungsitoli unit is
owned by a Singapore-based entrepreneur and employs three people including a manager. However,
the prospects for future employment in lobster rearing units are considered few because the lobster
production in Nias is too small and there is already stiff competition between the three units in
existence. Also, an FAO appraisal in 2007 mentions unconfirmed reports that this fishery may use
unsuitable, health-endangering or destructive techniques, such as diving using primitive gear
(hookah) and poison.

Sources of supply for exports

The source of supply for iced fish for exports is the local landing centres. There are three
ways in which the export traders source their fish: Firstly, they employ collection agents in
different villages who collect the fish and send them on to Gunungsitoli. The collection
agents/ independent traders in places like Sirombu send about 300-400 kg of fish in a week to
the traders in Gunungsitoli and are paid about 10% as their commission. The export trader in
Pulau Tello has some 20 agents in the Pulau-pulau Batu island group and each of them brings
about 100 kg of fish every day.
The second source of supply for export trade is the small independent traders in the villages.
Normally, the independent traders in small landing centres send their fish to Sibolga directly
if it fills at least 1 box, if not they act as suppliers for the bigger export traders. Lastly, the

48

exporters source their fish directly from the fishers. This is particularly evident in
Gunungsitoli and Telukdalam, where the traders arrange with the local fishers to bring their
export fish directly for sale (avoiding middlemen on the beaches). In some cases, as in
Moaw, the fishers sell fish to export traders on credit; however, this is confined to the local
export traders and the non-local traders have to pay with ready cash although the price of fish
is reportedly less in this instance by up to Rp.3500/kg.
Sea cucumber
Sea cucumbers (beche-de-mer) are hand-picked at a depth of 15-30m by divers in Lahewa, Afulu,
Saw, and Sarambao areas. Until a few years ago, there used to be a few local traders who bought
the sea cucumbers by weight, sorted them by size and packed them for onward transport. When they
received adequate quantities (about 100 kg per consignment), the trader would travel by sea
(speedboat) to Sibolga and thence by road (bus) to Medan where they would send the consignment
by air to Jakarta, where the exporters collected the consignment, re-sorted and repacked it to
international standards and sent it by air to Hong Kong and other markets. Over time, the sea
cucumber catches have fallen drastically, and most traders moved out and, for those who are still
involved in the activity, the trips to Medan have now contracted to Sibolga where about five traders
are reported to be involved in exporting them. Some Sirombo fishers are reported to sell their sea
cucumbers directly to the traders in Sibolga. Overall, sea cucumber trade is recognised as declining
and its future prospects rather dim.

Markets for export fish

The main market (which also is the transit point) for export fish from Nias is Sibolga. The
fish used for exports are frequently categorised into those intended for local consumption
within Sibolga and Medan, and those going farther afield. From Telukdalam, for instance, of
the 35 boxes of fish sent in a month by one exporter, about 25 are intended for sale within
Sibolga and its neighbourhood, while the remaining 10 boxes are for export to farther areas.
Fish like the reef cod, for instance, are intended for Singapore, while grouper are for
consumption within North Sumatera, probably Sibolga itself. The main markets for live fish
are Medan, Singapore and Hong Kong. The thumb rule for the local exporters is that any fish
that sells at over Rp.25,000 is sent abroad (mostly Malaysia and Singapore), and those
fetching less than Rp.25,000 are intended for local consumption including sale to Medan and
Jakarta.
An important characteristic of the export traders is their close kinship ties with the traders and
trader-intermediaries in Sibolga. The Nias traders have arrangements with their relatives (or
friends) in Sibolga to receive the boxes upon arrival in the port, carry them to the exporters
warehouses, be present for quality inspection and weighing, and bring the empty box back to
the ferry for the return journey. The choice of the specific exporters to whom the fish are sold
is decided after making enquiries with several traders over phone on the previous day,
although the traders prefer to supply consistently to the same exporter.
Fish trade in Sibolga
The market in Sibolga, like everywhere, is heterogeneous and involves at least two tiers the
exporters and traders at the top and the various trade intermediaries in the middle, who are the ones
with whom the traders in Nias have close kinship ties. The intermediaries obtain supplies from
different parts of the North Sumatera (including Banda Aceh, Nias and other islands) and sell it to the
exporter-traders based on the best prices offered although family ties can play a role even here.
Mostly the intermediaries act as commission agents, but they may also be involved in actual trade
themselves, buying from the suppliers in different areas and selling to the exporters. The sourcing of

49

fish from different areas and selling to different exporters would mean that the quantity of fish from
any single source is hard to quantify at the exporters level. Although a number of stages and actors
are involved in between the time the fish leaves the Nias traders yard and the time it is received at
the Sibolga exporters warehouse (a process that takes about 15 hours), there is a well-oiled system
at all levels so the whole thing passes off with clockwork precision.
An important point about the markets in Sibolga is that they are not insatiable either: if too many fish
were sent from Nias, there would sometimes be a depression in prices or even outright rejection. This
is the reason the export traders in Nias keep in constant touch with their counterparts in Sibolga
before sending big consignments of fish. Still, according to the export traders, the export prices for
fish tend to remain fairly stable while those for the local fish fluctuate almost daily.

Payments for the transactions are generally prompt by the Sibolga traders, and this is done by
direct remittance into the local traders accounts or, usually, when the local traders make their
periodical visits (generally weekly) to Sibolga. The local traders prefer direct settlements to
bank transfers for a number of complicated reasons: need for ready cash in hand, distrust of
the banks, fear of taxation, and family-based nature of transactions.
The Sibolga connection is not without hitches: the quality of a consignment is determined
based on the quality of one or two fish in the box and, given the mixed nature of the
consignment, if some loss of quality is observed, the price of the whole consignment may be
reduced. Usually, the losses due to spoilage are deducted at about 5%, but for poor quality
fish, the value of the whole consignment is cut to 50%, so the Nias traders take extra
precautions to ensure that (i) only good quality fish are sent and (ii) sufficient quantities of
ice to last the journey and more are added. Still, rejections of consignments on claims of
poor quality or weak local demand are not uncommon. Also common is the practice of
Sibolga traders to cut down the prices of fish when big quantities are sent, claiming they
would depress the local prices. The real reason could be the assumption (often true) that glut
landings would push the prices through the floor in Nias itself and the traders would make a
good profit even if they received a lesser price.
As indicated, the size of landings around the island is often so small that it is not always
possible for a trader to obtain enough fish to make up a box-load for sending to Sibolga,
forcing them to sell their fish to the export traders in Gunungsitoli or Telukdalam. The export
traders, in turn, have similar problems with finding enough catch of a single species to pack
in the boxes that it is the norm to pack a mixture of different fish in a box to make up the
quantities. This practice allows the exporters in Sibolga to dictate the terms of trade,
frequently based on the cheapest fish in the container.

Technology
The Gunungsitoli-based fish traders use freezer ice both because some of them have their
own ice making facilities and also because they consider the quality of freezer ice to be
superior to the ice plant ice.50 The Pulau Tello boats, which carry fish to Sibolga, return with
ice in their holds which is practically the only source of ice for such an important landing
centre51. The traders of Sirombu and Lahewa try to buy ice from Gunungsitoli and bring it
back in the empty boxes that come back from Sibolga, but complain about the unwillingness

50

The Gunungsitoli ice plant also needs maintenance as the quality of ice produced here is really poor.
Refrigerator-made ice is available, but given the electricity fluctuations on the island, it is a wonder if any ice is
made at all
51

50

of the public transport to carry ice. The traders in Telukdalam use ice from the local ice plant
occasionally, but they dont need more than 10 blocks at any time.
Usually, care is taken to pack the fish in ice as quickly as possible, but some of the traders do
not have ready access to ice and arrange for it to be brought from elsewhere based upon the
quantity of fish they received on a particular day. This would mean delays in packing the fish
in ice, which are aggravated by the fact that the fish are usually not iced before reaching the
traders. The traders make sure that the quality of fish is good before packing it in. The fish
that are not considered fit for sending to Sibolga go into the local supplies.52
Monopoly and monopsony in Pulau Tello
At present, there is only one trader in Pulau Tello dealing with all export fish produced in that very
productive fishing area. The trader also owns a fleet of fishing boats, including two lift-netters, besides
procuring export fish from a majority of the fishing boats in the area. He also owns two boats that ply
between Pulau Tello and Sibolga regularly, taking the fish to the market and bringing back ice in
return. This coupled with the closure of the government-run ice plant on the island about three years
ago, means that the trader is the only source of ice for the local producers. The motorised fishing
boats obtain their supply of ice (and iceboxes) from the trader and their costs are deducted from the
sale of fish upon landing. Although small freezer-made ice is available on the island, the erratic
electric power situation (which is much worse than even in Nias, which is bad indeed) would mean
that the quantity and quality of the locally produced ice is necessarily limited. The power situation also
means that there is little possibility (and private sector interest) of a new ice plant being installed or,
if installed, being economically viable in the near future, so the dependence on the trader will
continue. However, before jumping to conclusions about the nature of the relationship between the
trader and the fishers in Pulau Tello, given the overall situation of the island good catches, poor
infrastructure, long distance from the mainland and poor communication facilities the trader is
probably the only source of market access for the local producers. If not for this one trader, the fishing
economy of the island would be totally different and probably much worse off.

HDPE iceboxes of about 200 kg capacity each are used for packing the fish and ice for
transport to Sibolga. The proportion of ice to fish in the packing is quite good about one to
one by weight. When the quantities of fish are bigger, wooden boards are used to raise the
height of the box by about 6 inches. The lids are securely tied to the body with ropes and
packing tape. The boxes are well-made and serve their purpose, but they are not intended for
regular and hard usage; the boxes get damaged quickly and need to be replaced every two
months. The HDPE construction of the icebox makes it difficult to repair so they are simply
discarded and new boxes bought. A more sturdy and robust icebox (for instance, custom-built
with FRP material) might improve the conditions.

Infrastructure for export fish trade

Fish from distant landing centres to the nearest export centre (Gunungsitoli or Telukdalam)
are brought by public transport (in case of small quantities), and by motorcycle-rickshaws (in
case of bigger landings). The time between the procurement from the fishermen and eventual
transport and delivery to the export traders varies from place to place, but this is probably the
most critical stage in the whole supply chain where most losses could occur. Ice and transport
at the landing centre thus remain a bottleneck in this supply chain which is better organised
otherwise. Most fish traders feel that they could expand their operations (especially in the
western parts of the island) if good transport services are available.

52

Also, when the Sibolga prices are low, the traders sell their fish in the local markets

51

The export traders generally use their front yards for icing and packing the fish and have all
the necessary tools of trade: for weighing, crushing ice and packing the fish boxes. They also
have a well oiled mechanism for transporting the fish to the port and loading the boxes into
the ferry. Normally, minicabs are used for transportation.
The fish from Gunungsitoli are sent every day by the night ferry to Sibolga which leaves at
8pm arriving in Sibolga 12 hours later. The shipments from Telukdalam and Pulau Tello are
less regular; the Telukdalam catches are sent twice a week. In Pulau Tello, the traders send
their fish to Telukdalam, except for the big trader who sends his fish directly to Sibolga
usually every day or every other day, while another privately owned boat calls in at Pulau
Tello once a week to collect the fish. The period of wait until the next ferry arrives in places
like Telukdalam makes the cost of storage go up as the fish need to be re-iced frequently. But
it is unlikely that increased frequency of transport would automatically improve conditions
because there is not enough supply of fish to ensure daily transport in places like Telukdalam.
There are no freezing plants and cold storages in Nias, for obvious reasons.

Investments and returns

The margins of trade in this supply chain are hard to establish not only because the fish go a
long distance out of the island, but also because of the frequent fluctuations that the fish
prices are subject to in Sibolga. Another factor that complicates the matters is the existence of
numerous intermediaries in the process.
The trade also involves numerous costs. The export traders have sales tax registration, which
reportedly costs about Rp.600,000 a year. Transportation costs from Gunungsitoli to Sibolga
by ferry cost Rp.30,000 per box, while the cost of transport to the ferry in Gunungsitoli and
from the ferry to the traders warehouse in Sibolga costs Rp.20,000, and the return of the
empty box costs another Rp.15,000. After all the expenses, the export traders reportedly
make a net profit of Rp. 200,000 per box of fish sent to Sibolga. In case of an independent
trader in Sirombu, who sends his fish directly to Sibolga via Gunungsitoli, the cost of
transportation reportedly works out to Rp.100,000 for one box, containing 150 kg of fish
worth about Rp.3 million. The income per box reportedly works out to Rp. 60,000.

Access to investment and credit

Usually, the traders do not provide advances to the fishers for obtaining fish, but given the
overall state of marketing linkages in the island, they dont need to. However, the system of
advances is not completely absent: the trader in Telukdalam provides support to the fishers in
the form of fishing equipment and iceboxes (for which he is a local dealer), and deducts his
investment from the sale of fish to him. There are a few cases of the Sibolga traders providing
advances to the local traders or fishers for assured supply of fish catches; one exporter in
Mbousya, Olora village, near Gunungsitoli obtained a loan of Rp.50 million from a Sibolga
trader and supplies all his fish to this trader who buys the fish at a discounted rate (10-20%
less than the going rate, depending on species). The collection agents receive advances from
the export traders to pay for the purchases.
Although it is one of the big complaints of the export traders that their business is constrained
by lack of capital, none of them has ever obtained a bank loan. In fact, they seem to fear bank
loans because, as the trader in Mbousya explained it, bank loans are considered to bring about
52

bankruptcy! This is, of course, based on past experiences, still the fact remains that the export
trade is hardly ever financed by the formal credit system. Taking this a step forward, the lack
of access to credit restricts the opportunities for the fishers to improve their fishing
capabilities to catch more of the export species, which has implications for the size of the
export trade in Nias.

Market information
One of the critical needs of the export supply chain in Nias is the access to up-to-date market
information, mainly relating to Sibolga, Padang and Medan markets. The traders are in
constant touch with these markets for information and yet are not satisfied with the quality of
information they receive. Many traders felt that they could do with a more systematic,
reliable and consistent source of information. Even in places like Pulau Tello, where access to
information is probably of less import compared to many other, more immediate, needs, the
fishers felt that having access to prices in distant markets would eventually lead to better
prices down the supply chains. The independent traders on the north and the west coasts
believe that they could bargain for a better price from the exporters if they have ready
information about the market prices in Sibolga.
However, the information that the fishers and fish traders seek can be hard to get: for one
thing, the prices in Sibolga fluctuate frequently. Secondly, there are different kinds of market
information, which vary from one level to the next in a supply chain: in other words, the
market information that a consumer receives in Medan is not the same as the one that a
producer in Nias requires. It is necessary to identify the precise needs of the different
stakeholders in this supply chain in order to define market information from their
perspective and develop accurate means of obtaining the necessary data on a regular basis.
Summary of issues: Distant (export) market supply chain
While the export traders are probably the most important link in this supply chain, the focus here
53
should be on the producers , especially those operating the non-motorised and motorised small
canoes, and their capacity to earn a better share in the value of their fish.
Main problems

Spoilage along the supply chain, both at sea and in transit to the export traders shed
Many intermediaries in the supply chain reducing the producers share in the value
Lack of investments for scaling up or for improvements
Lack of access to market information for the traders
Small size of supplies

Suggested actions

Develop a Cold Chain system specifically for the export species

Design, test and promote iceboxes (20kg) for use on non-motorised canoes targeting export
species
Set up permanent iceboxes (PIBs) or movable ice storage systems as described in the section on
mobile fish traders.
Set up producers groups to take ownership of the PIBs, with possible involvement of the women

53

Whatever losses the traders might have for lack of something or the other are transferred to the producers; in
some cases at least, the lack of certain basic necessities (like ice) are converted into advantages for the traders.

53

or local fish collection agents in actual management and day-to-day operations

Explore possibilities, where feasible, of bulking up catches and supplying directly to the export
trader, so as to avoid at least one level of intermediaries
Explore opportunities for providing up-to-date and regular information on fish prices in Sibolga,
Padang and Medan, with an option for covering a wider area in future.
Although not a strictly post-harvest activity, there is potential for exploring opportunities for further
expansion of cage culture for grouper, which adds to the export supply chain.

Potential benefits

Reduced spoilage losses on landing and in transport to the export traders shed, providing up to
20 percent additional income
Bypassing one intermediary in the supply chain would mean an increase of up to 20 percent in
the value of the product
Sale of ice provides an additional source of income
Group-based savings and credit activities would give access to credit and possible links with
formal lending agencies.
Market information might lead to better bargaining power with the traders in Sibolga and
elsewhere

3. Processed fish supply salted-dried fish

Brief description of the activity
Processed fish, which include salted & dried fish, smoked fish and (to a very small extent)
boiled fish, is a small fish supply chain in Nias, accounting for about 10 percent of the total
landings. Salted & dried fish account for over 70 percent of the processed fish. Much of the
commercial-scale processing is done on the Pulau-pulau Batu island group, where good
quantities of small pelagic species are landed round the year; much smaller quantities of dried
and smoked fish are made in the main island of Nias, mainly using unsold (semi-spoiled)
fresh fish. The survival of this supply chain owes partly to the general condition of the
fisheries sector (poor access to electricity, ice and transport), but there does exist significant
demand for dried fish in Nias, indicated by the fact that the major proportion of dried fish in
the local markets is actually imported from the mainland. In a sense, nowhere is the clich
appearances could be deceptive truer than in the case of dried fish in Nias. The small
quantities of production can make one easily overlook its importance from the food security
and livelihood point of view, especially for some of the poorest people in Nias.

Key stakeholders in the supply chain

Although accounting for a small proportion of the total landed catches in Nias, dried fish
supply chain has a large number of stakeholders.
i.

Producers

The key stakeholders in the processed supply chain are the salted and dried fish
manufacturers in Pulau-pulau Batu (mainly Pulau Pini, Pulau Bais and Pulau Tello islands).
The island of Pulau Pini is considered to be the biggest producer of dried fish in Nias,
followed by Pulau Tello. As the activities are spread out over a big area and are not regularly
undertaken, it is difficult to obtain an idea of the number of people involved in the supply
chain. In Pulau Tello, from where about a quarter of the dried fish produced in Nias come,
54

there are 20 producers involved in commercial production of dried fish. However, in Pulau
Tello as elsewhere in the Pulau-pulau Batu islands, a majority of fishing households retain a
part of their catch for drying (usually in their backyards) for sale to bigger traders as well as
for their own consumption round the year.
In Nias Island, small quantities of dried fish are made from local catches in villages,
especially on the west coast, where lack of ice and transport systems requires a part of the
catch to be processed. The quantities produced tend to be small, but a few families in each
village do make a living out of them. Also on the Nias Island, many fresh fish retailers make
dried fish using their unsold catches, but fish drying is done as the last resort and often the
traders would rather sell the fish at any rate than make it into dried fish. In any case, they use
semi-spoiled fish for making dried fish and almost wholly for their own consumption.
Processed fish supply chain
Producers
in Nias
Island

Imports
from
Sibolga

Weekly
markets

Wholesale
trader

Producers
in Tello

Retail
markets

Motorcycle
traders

Producers
in Pini/P
Bais

ii.

Consumers

Door to
door

Padang

Trader-distributors

Besides dried fish producers, the other important category is the dried fish trader-distributors,
who are a bigger stakeholder in the supply chain than the producers, because they handle
bigger quantities than the dried fish produced in Nias. The main distributors of dried fish in
Nias Island are located in Telukdalam. Besides, there are a number of retail dried fish traders
of various kinds (daily and weekly vendors, motorcycle vendors).
Most apparent producers of dried fish are men, but the women are said to take an active part
in the production process. Women are prominent in the dried fish trade most dried fish
shops are run by women and a number of dried fish traders at the weekly markets too are
women. The dried fish activity is important if only because of the fact that this is one area
(besides a marginal role in local fish trade) where women seem to have a significant stake in
the fish supply chains of Nias. Given the low investments and small quantities produced,

55

which is a reflection of the size of the demand, the people who depend on processed fish
trade can be considered as being poor.
iii.

Consumers

Finally, the important stakeholder in the dried fish supply chain is the consumers. Besides a
small proportion of well-off consumers who buy dried fish out of personal liking, a vast
majority of the consumers are poor. For several fishing households, dried fish is staple diet
when fishing is poor. Also for the isolated communities in the interior of Nias Island, dried
fish is an important protein source and increasingly so as the cost of pork keeps going up.
Given their economic condition, the quantities purchased by a household tend to be
necessarily small, but this would also imply that the number of consumers is far higher than
the production figures might suggest.

Fish used in the supply chain

Fish used for salting & drying are of two kinds: those which could not be sold fresh and
hence reduced to processed fish and those which are specifically used for dried fish
manufacture. The former includes virtually every species of fish, including some big and
costly fish like groupers and snappers, while the latter includes sardines, anchovies (black
and white varieties), scads and trevallies. In Pulau Tello, there are about 20 processors who
purchase fresh fish for the purpose of converting them to dried fish. There are seasonal
differences in the availability of fish: sardines have two or three seasons in a year, each
lasting about a month, when they are landed in good quantities. Black anchovies are landed
round the year, while the more-prized white anchovies land occasionally.
It is difficult to quantify how much dried fish a processor makes in a cycle as there are wide
fluctuations in the quantities produced by different processors. In Pulau Tello, each of the 20
producers reportedly makes about 500 kg to 1t of product per week, which works out to about
2-4t per month. The quantities of dried fish made by each processor in Nias Island itself are
quite small 10kg a week is about the average. Overall, most people agree that about 10
percent of the total landings in Nias can be going into processed supply chain.
However, as indicated, the supply chain handles quantities much bigger than the local
supplies: from all accounts and visits to the dried fish markets, it could be seen that dried fish
imported from mainland Sumatera comprises almost 60-80 percent of the total volume of sale
which would make it almost as big as the export supply chain. The important species
imported from the mainland include anchovies, sardines, and acetes shrimp.

Sources of supply for processed fish

As indicated, a major proportion of the dried fish in Nias markets comes from Sibolga,
Padang and other parts of North Sumatera as well as from Thailand. Telukdalam, probably
because of its long-standing trade in dried fish supplied from Pulau Tello, seems to be the
main entry point for dried fish into the island, from where it gets distributed to the rest of the
island including Gunungsitoli54. There are some 15 traders involved in retail dried fish trade
in Telukdalam, and some of them act as distributors for dried fish sourced from Padang,

54

Some dried fish enters Nias through Gunungsitoli as well.

56

Sibolga and Pulau-pulau Batu islands. The import of dried fish from the mainland is very
much along the lines of the export of fresh fish to the mainland, except that it is in the
reverse. The traders in Sibolga send dried fish in cardboard boxes in the weekly ferry based
on orders placed by the local distributors.
In Pulau-pulau Batu islands, large quantities of small pelagics occur in the catches of the big
lift-net boats, of which there are four in Pulau Tello. The boats stay at sea for 12 hours,
fishing at night with lights to attract squid and other fish, and regularly catch large shoals of
small pelagics. It is the lift net catches which seem to keep the processors in Pulau Tello
going. Glut landings of small pelagics in gillnet catches also get to be salted & dried 55. Lack
of ice forces several export quality big fish in Pulau Tello to be dried, although the poor
quality of the product belies its origins.
Small quantities of boiled fish also are seen in the markets, mostly made in the smaller
islands around Nias and in some parts of western Nias. Some quantity of boiled fish also
comes from Sibolga, via Gunungsitoli.

Markets for processed fish

Nias is a net importer of dried fish and the demand for dried fish may be small in terms of
quantity but significant, especially in terms of its contribution to local food security and
livelihoods. The locally produced dry fish mostly goes into home consumption and a little
goes into local market sale.
The regular market for Pulau Tello product is Telukdalam. The arrangements for sale to
Telukdalam (which acts as a transit point for Gunungsitoli-bound dried fish from Pulau
Tello) are like in the case of fresh fish: the sellers ascertain the price of fish before sending it
across by the daily boat plying between Pulau Tello and Telukdalam.
The retail dried trade is of three kinds:

stationary (i.e., shops and kiosks): while some shops stock dried fish exclusively,
many shops usually sell dried fish alongside other commodities, although dried fish
are prominently displayed outside the shop (if only because keeping them inside
would make the whole place smell of fish); quantities stored can vary between 50 and
100 kg.
dry fish sellers at weekly markets these are people who visit the weekly markets
with small quantities of dried fish for sale, the quantities traded not exceeding 20 kg
per trader; in the north, some of the product is made by the traders themselves, while
in the south, it is mostly sourced from Telukdalam; the dried fish producers in the
north often walk long distances to the weekly market, carrying their fish on the head;
and
Motorcycle traders who visit Telukdalam markets to collect dried fish for sale in the
interior markets of Nias Island, trading about 20 kg of fish regularly.

55

Even the salt used in local processing in Pulau-pulau Batu islands comes from Sibolga! The salt is said to lose
up to 20 percent during transit from the mainland.

57

The main source of dried fish supplies in most cases is the Telukdalam distributors, although
in places like Gunungsitoli, there may be local redistributors. Fish is sold by weight in the
regular markets, but in small heaps in the weekly markets.
The imported dried fish is acknowledged to be of much better quality, wider variety
(especially of small fish), and cheaper price too. In Gunungsitoli retail market, for instance, it
is possible to identify the origins of the dried fish by visual observation: the small and
properly dried fish would be from the mainland Sumatera; large and flaking dried fish would
be from Pulau Tello; and the very small quantities (if at all) of medium-sized, average-topoor quality, dried fish would be from Nias Island itself. Even the same species of fish from
the three different locations would fetch different prices, the mainland product commanding
almost twice the price that the local product would get.
The dried fish from Pulau Pini go to Padang because of its proximity to the island; qualitywise too, the Pini product is acknowledged to be good because fish are immediately dried
upon landing. From Pulau Tello, only white anchovies and dried squid go to Padang. Even if
there are good quantities of dried fish produced in Pulau Tello, the producers say that the
quality tends to be inferior and not really good enough to be sent to Padang or Sibolga.
In Padang, the fishers depend on the local commission agents to sell the fish for them and,
during the period of waiting, the fish is stocked in the local warehouses whose charges run up
to 12.5% of the value of the product before it gets to be finally cleared. In case the
commission agent fails to find a buyer or is forced to sell for a loss, the warehouse costs will
still need to be paid.
Medan has a big dried fish market, but the costs of transport make it prohibitive to send Pulau
Tello product there, especially when compared to the product from Sibolga or Tanjung Balai
on the east coast of North Sumatera, which are closer to Medan and incur much less transport
costs to reach the market.

Technology of processing
In Pulau Tello, medium-sized fish like sardine are split (butterfly-cut), gutted, soaked in salt
brine and dried on bamboo mat platforms raised about 2 feet above ground. The duration
of salting varies based on species and the size of fish. The processors soak sardines in brine
for up to 24 hrs (even 4-5 days during inclement weather). Smaller fish like anchovies are
soaked in brine for one hour before being spread out to dry. Brine is made by mixing 25 kg of
salt to 50 li of water and mixing thoroughly.
During rainy season (which effectively means round the year in Nias), the drying fish get
infested by blowfly maggots in large numbers and up to a third of the fish is lost to
infestation. The problem is particularly acute when the bigger fish are being dried, because
they take a long time to be properly dry. The processors tend to use fresh salt for every cycle
of operation so as to reduce infestation, which is a good practice, and also apply antimosquito sprays (Baygon) directly on the fish, which is not a good practice. Frequently, they
also use kerosene instead of Baygon with the difference that the kerosene treatment is
confined to fish which have maggots, while the Baygon is sprayed on all drying fish.
Suggested dosage: li kerosene or 100 ml Baygon for spraying on 500kg fish.

58

The fishers realise it is harmful to use Baygon and kerosene on fish, but lacking alternatives,
they continue to do so. The fish do not smell of the kerosene after keeping it out in the sun for
a day. The processors contention is that in the ten years or more that they have been doing
this, they have never received a complaint about health problems or about the distinct smell
that kerosene or Baygon would leave on the fish. In fact, some of the processors believe
kerosene to have therapeutic properties so it would do good to ingest it. The Perspective Plan
for Fisheries Development in North Sumatera Province also recognises the usage of harmful
additives in processed fish, and proposes to monitor and take measures to restrain the fishers
from using additives.
The other loss during the rainy season is, of course, the rain itself: when it rains continuously
for more than two days, the processors expect to lose 50 percent of the fish. Even otherwise,
the processors reportedly lose about a quarter of their fish to rains and to maggots at least
once a month. For whatever reasons, the Pulau Tello product is said to last only about 2
weeks (probably because of the quality of the raw material) and the price goes down by half
after two weeks. As FAO (2007) suggests, the drying and smoking of fish could be greatly
improved by introduction of simple technology, such as clean water and good quality salt,
improved drying and smoking techniques, alongside some loss reduction strategies to avoid
Baygon and kerosene.

Infrastructure for drying and dried fish trade

Drying in Pulau Tello is carried out in the midst of densely populated areas, because a major
part of the island is taken over by privately-owned, and more lucrative, coconut and other
plantations. The actual drying infrastructure (drying racks, bamboo mats, and salting vats)
seem to be sufficient for the purpose.
There are no big storage facilities for dried fish in Nias Island and, given the size of the
transactions, there is probably no need for them. The dried fish are packed, transported and
stored in cardboard boxes. However, storage is a big problem for dried fish in Pulau-pulau
Batu islands, where dried fish need to be stored for extended periods of time waiting to make
up the minimum bulk required for export to Padang or to the Nias Island. During the period,
the fish never fully dried anyway fall prey to infestation as well as rains, leading to
physical as well as quality losses. The latter, as discussed, lead to less prices being offered to
Pulau Tello product. Since the marketing activity here as in other supply chains seems to
be very individualised (the social component being confined to kinship relations), there is
little scope for the producers to collectivise and send their product more frequently.
The regular dried fish markets seem to be tidier and better organised than the fresh fish
markets56, but the weekly markets lack any provision for dried fish sale, so the traders display
their wares on mats spread by the roadside.

Investments and returns

No information is available on the investments and returns in processed fish trade, because
they vary so widely from place to place and from processor to processor.

56

Probably the fact that most of them are manned by women could have something to do with their tidy
appearance.

59

Access to investment and credit

The activity is entirely managed by the producers and traders with their own capital. The
need for credit does not seem to be a big issue because, when glut landings occur, the fishers
offer fish to the processors on credit basis and the processing and trade operations are
developed to cope with longer trade cycles. There are few opportunities for increasing
investment for the small-scale traders. However, if the activity is to be made more efficient,
using better loss reduction strategies, the fishers would need support to make the small
additional investments required for the purpose.

4. Processed fish supply smoked fish

Brief description of the activity
Smoking is a tiny, but fairly widespread, activity in Nias Utara district. It is also very diffuse,
in that neither its production nor its trade come across as clearly defined activities (as in the
other supply chains). Smoking is fairly widespread especially on the west coast, although
involving few families and small quantities of fish. The origins and continued prevalence of
smoking in Nias can be related to the fact that it rains for the best part of the year on the
island, which makes it difficult to dry the fish. Two recent developments growth of tourism
and post-Earthquake reconstruction efforts seem to have given it a slight boost. Thanks to
tourism, smoked product acquired a niche market in places like Gunungsitoli and elsewhere,
while the reconstruction programmes gave rise to attempts to introduce some improved
smoking methods in places like Pulau Tello and Sirombu, with little success.

Key stakeholders in the supply chain

The stakeholders in this supply chain are few and tend to have diverse other sources of
income. The fish smokers of Saw, Afulu, Lolowau and Lahewa are involved in fishing,
fresh fish trade and/or agricultural activities. Most retail fish traders (whether in regular
markets or in the weekly markets) tend to deal in a range of dried fish as well. It is
occasionally possible to see a few traders in the weekly markets who sell only smoked fish,
which is mostly made by themselves. There are several household based smoking units in
various parts of the island, which produce small quantities of smoked product which provides
some additional income to the families rather than being the main source of livelihood. The
numbers of smoked fish producers in villages is quite small three in Afulu, one in Sirombu,
a few on Hinako island, and about four in Lolowau. In Muzoi, in north Lahewa, it is reported
that there are 28 smokers, of whom only 3 make smoked fish of any substantial quantity, the
remaining settling for small quantities. Similarly, in Saw, almost all the 35 boat operators
undertake fish smoking but the quantities are extremely small. The poor road conditions in
the northern zone are the reason for the widespread prevalence of smoking there. The people
involved in smoked fish production and trade tend to be mostly poor, but some of the tradersuppliers of fresh fish also have their own backyard smokers for utilising unsold fish (e.g.,
Sirombu) and these can be well-off.

Fish used in the supply chain

There is no preference for specific species in smoking; the processors seem to use whatever
fish is available cheaply. Here too, the tendency is to use not-so-fresh fish for smoking; fresh
fish is used only when there are good landings that cannot be immediately sold (as in
60

Lolowau and Afulu). Usually, medium-sized fish like trevallies and mackerel are preferred
for smoking, although sardines and other small pelagics too are reportedly smoked in places
like Saw.
Quantities of fish smoked tend to be very small, ranging from 5 to 20 kg per day. The size of
the activity is frequently so small that the fish are sold by number. The availability of fish
supplies, the capacity and the efficiency of the smoking system itself, and (most importantly)
the size of the markets, work against increasing the quantities smoked.

Sources of supply
The most important source of fish for smoking is the unsold catches from the fresh fish trade.
There does not seem to be a case where fresh fish are specifically obtained for smoking
purpose. The two big smoked fish producers in Afulu reported that they would prefer to sell
fish fresh if they could help it; even now, they sell about half the catch they buy in fresh and
use the rest for smoking.

Markets for smoked fish

The demand for smoked fish seems to be tiny, but widespread all over the island. The smoked
fish are not directly used as food (as, for instance, dried fish are), but more as a condiment or
seasoning57, which means people buy small quantities of smoked fish for adding to their main
course. On the whole, it means that the tiny demand for smoked fish may not go up, but it
will at least remain constant and that a part of the fish will continue to be smoked in the
future. On the other hand, the smokers believe that the demand for smoked fish is growing. In
the markets, smoked fish certainly fetches a better price than dried fish.

Technology of smoking
The traditional smoking activity involves spreading fish on a bamboo mat raised about 3 feet
above ground and getting a fire going underneath. The firewood is of various kinds of dry
wood, which means that there is as much fire as there is smoke. Some smokers (e.g., in
Sirombu) seem to prefer coconut husk which is abundant in the coastal areas for smoking,
while some others (e.g., in Afulu) avoid it. The smoking unit is usually an open structure,
which is enclosed by a sheet on all sides when smoking is underway, still much of the heat
and smoke escapes on all sides.
Fish is generally split, salted and sun-dried prior to (and in some cases, after) smoking. The
time taken for smoking varies from species to species, but seems to be rather high going up
to 24 hours for some species. The rate of return by weight seems to 1 kg smoked product for
2 kg fresh fish.
Smoked fish project in Pulau Tello
There is no history of fish smoking in Pulau Tello until the OISCA (a Japanese NGO which worked in
the area in the post-Earthquake rehabilitation programme) decided to undertake a project with the
support of Asian Development Bank (ADB), which involved setting up 10 sophisticated smoking
systems in the village, for operation by groups of fishers who were trained in the operations of the

57

A habit the Niasans seem to share with Sri Lanka and parts of India

61

smoking system. The new smoking system was an elaborate structure involving a smoking area, a
smoke generation unit and a long pipe connecting the one with the other. On its way from the smoke
generation unit to the smoking area, the pipe passes through a water tank which cools the smoke,
allowing a gradual process of smoking. The liquefied smoke is collected by a separate outlet at the
bottom. It is reported that coating the fish with this liquid prior to smoking improves the quality of the
final product and also reduces infestation problems. The smoking area, where fish are hung from
hooks fixed to trays, can handle about 50 kg of fish in all, which gives some 30 kg of product after 6
hours of smoking followed by 2-3 hours of drying. The technology as such is good for smoking fish,
but there are at least four major problems for its operationalisation:

Small capacity: the quantity of fish that can be smoked in the system is too small to be able to
obtain the minimum quantities required for reaching a distant market.
Group organisation: the ownership of each bin was given to a group of 10 people, which made the
scale of activity much smaller than it already was; the group dynamics did not allow any one
processor to use the bin even for test marketing purposes.
Working capital: OISCA reportedly promised to provide working capital, which however hasnt
been forthcoming. Without working capital, the fishers are unwilling to use the smoker or allow
anyone else to use it either, fearing that if the smoker were used, the promised assistance would
not come through on the assumption that they didnt need it anymore. The trouble is that there is
very little chance for the money to come through as the OISCA programme itself was wound up
some time after the training was provided. The fishers know this, still use it as an excuse for not
using the smokers.
Market linkages: Market linkages remained totally ignored. There was no attempt to take the
product out of the island for test-marketing (a few packets of smoked fish were distributed to
visiting tourists, whose appreciation of the product apparently served for a market survey), and
the fishers are both unable and unwilling to do test marketing themselves.

All in all, the smoking activity in Pulau Tello is yet another case of development ideas gone awry and
it doesnt seem likely that fish smoking will get a second chance in the near future in Pulau Tello.

Two processors in Sirombu also received from the Department of Industrial and Trade
Affairs (Dinas Perindustrian dan Perdagangan) a different kind of smoking bin, much
simpler and at least more efficient than the traditional smoker. The bins have a galvanised
iron frame and fish are arranged on trays above a fireplace at the bottom. One of the bins is
used regularly while the other is reportedly damaged already.

Infrastructure
Most smoking is confined to one of the backrooms or to the backyard of a house. As very
small quantities are used, the activity does not require much space. On the other hand, the
elaborate smoking apparatus in Pulau Tello, although its capacity is not big, seems to require
a lot of space, besides some permanent installations water tank, a shelter for the bin etc.

Investment and returns

The available evidence suggests that the quantum of earnings from the activity is too small to
be the main source of livelihood for a household. If the activity is growing as people claim,
there may be some livelihood opportunities in it, but as things stand, it can be no more than a
supplementary activity. However, one justification put forth for supporting the smoking
activity is that the villages where this is undertaken lack the basic facilities for selling the fish
fresh and would perforce have to depend on smoking. It is argued that, given that the unit
prices are high, helping the processors with improving the smoking process or reducing the
losses or increasing production might help them. The unit price of smoked fish tends to be
high, which can be rather deceptive: the high prices could well be linked to depending on a
62

small niche market58. Moreover, smoking involves a certain cost (unlike drying) and the cost
of production must also be taken into account when determining at the final values. A case
can be made for a closer look into the production aspects of smoking and undertake some
technical improvements and capacity building for improving quality of the product.

Access to investment and credit

Access to investment and credit does not seem to be a concern for the smokers.
Key issues: Processed fish supply chain (dried & smoked products)
Main problems
Issues related to poor quality of the product usage of semi-spoiled fish in processing
Losses in production rains, infestation
Usage of hazardous material to reduce infestation; potential health hazards from smoked fish
Low efficiency (smoking)
Poor consumers, indicating no market incentive for scaling up or improving quality
Suggested action

Undertake capacity building activities aimed at quality improvement, loss reduction strategies and
improving processing efficiencies (in smoking)
Explore opportunities for product diversification and for access to new markets through branding
Awareness generation programmes aimed at producers and consumers about the health
concerns related to processed fish

Potential benefits

Reduced losses, adding 20 percent to incomes

Increased efficiencies in smoking can reduce wastage by up to 15 percent
Better quality product less hazardous to health for the consumers

Given that (i) traditional processed fish production is an important livelihood activity with
implications on poverty and food security for several stakeholders in the sector, including the
consumers, (ii) that there exists a sizeable demand for dried/smoked fish within and beyond
the island, (iii) that, even in areas where processed fish is made for lack of options to sell fish
in fresh condition, dried fish production will probably remain at the same level for some time
to come; there is a justification to undertake small-scale interventions to address the
significant losses encountered in processed fish production and marketing. The wet season
losses and infestation losses are significant both from an economic perspective as well as a
food security perspective because of the usage of potentially harmful additives, and using the
outputs of some of the recent DFID-funded post-harvest research projects in tropical
countries like India59, there is potential to demonstrate loss reduction strategies in
traditionally processed fish.

58

Much like the cost of academic publications, whose prices (many times more than popular books) should not
mislead one to equate price with the size of demand.
59
See Ward, 2000 for wet season losses; Esser et al, 2004 for application of a systems-based approach for
reducing insect infestation

63

FAO-Nias projects interventions to support the stakeholders in different supply chains

The FAO-Nias project undertook a range of activities for addressing the shortcomings in the fish
supply chains in Nias. These included:
1. Activities relating to chilling and preservation of fresh fish:
Specific activities in this component related to setting up a cold-chain system in selected areas for
fresh fish sale in local and export markets. This involved:

Designing and providing custom-built iceboxes for usage onboard the smaller fishing boats, on
motorcycles and on bicycles on pilot basis;
Arranging with the Gunungsitoli ice plant to supply ice on a regular basis at subsidised (and prefixed) prices to selected groups of fishers;
Designing and setting up permanent iceboxes (PIBs) in selected locations on pilot basis, in order
to assess their technical and institutional feasibility; and
Undertaking regular awareness programmes for the fishers in the usage and maintenance of
insulated iceboxes as well as the PIBs.

Based on the outcomes of the pilot phase activities, the successful interventions (iceboxes in
particular) have been scaled up to cover a larger number of stakeholders.
Alongside, the FAO-Nias project has also attempted to improve the quality of fish markets by
supporting the use of glass cabinets and proper tools of trade, as well as promoting good handling
and quality control practices through training, posters and other mechanisms. A major awareness
campaign was launched in most important markets for raising awareness among the producers as
well as the consumers on good practices through posters, stickers, and banners.
In its attempt to help bicycle fish traders, especially women, the project tried to develop a suitable
icebox with mixed results (the men found them useful while the women found them too heavy), so
the project has planned to help the bicycle fish vendors through supply of new bicycles which helped
reduce their capital costs significantly thereby contributing to higher returns.
2. Activities relating to improved fish processing (drying and smoking), including quality
control, loss reduction, packaging and marketing
The activities in this component involved training selected groups of fish processors in improved
processing methods, which included reducing losses and improving quality of the product. The
project also attempted to support the processors through provision of improved methods of
processing (smoking bins and drying bins), which helped to reduce losses, cost of operations, insect
infestation problems, while increasing quality, shelf life, nutritional and economic value of the
product. The project also supported selected producers groups to market their product in new
markets beyond the traditional ones with encouraging results.
In summary, it can be said that while the project interventions have not yet had the opportunity to
become established to allow a more comprehensive assessment of their impact, the available
evidence from the fishers clearly shows that there are definite positive outcomes from the technical
interventions, and these included several economic, social, nutritional and livelihoods-related
benefits. The specific benefits from each of the activities have been documented separately and
hence are not discussed here.

64

6. THE SUPPORT SYSTEMS IN FISHERIES AND POST-HARVEST

FISHERIES
1. Infrastructure and service facilities in Nias fisheries
Fish landing centres
Most of the fish landings in Nias take place on the beaches (Sirombu), kept at anchor in a
protected anchorage (bigger boats operating from Gunungsitoli) or moored in small water
outlets (Lawu Lawu). There is no fishing harbour with proper shore facilities for large
motorised boats. Concrete fish landing jetties exist in important places like Gunungsitoli,
Lahewa, Telukdalam, Hinako and Pulau Tello, and according to the FAO-Nias census,
number 12 in all. The DKP have plans to set up fish landing facilities in Teluk Belukar,
Botolakha, Lahewa, Gunungsitoli, Humene, Bozihona, Gazamanu, Tuhemberua, and
Sirombu. Some of these are near completion, while others are waiting for funding approvals.
An important constraint for the fishers to use the fish landing centres (like the one in Teluk
Belukar near Gunungsitoli and the older fishing jetty in Pulau Tello) appears to be their
distance from the regular landing centres where the fishers land their boats and can expect to
sell their catches readily. This leads to the ironical situation where, although having access to
a fish landing centre is one of the most critical needs of the fishers, they cannot use the new
landing centres. The other, perennial, problem with setting up infrastructure like fish landing
centres is the arrangements for their management and maintenance. Currently, there are no
management systems in place for the upkeep of the harbours and these would need urgent
attention.

Ice plants
Ice is a critical need in fisheries and the fisheries of Nias is seriously constrained by lack of
access to ice. Lack of ice in the northern zone villages like Saw and poor access to it in the
rest of the island (the possible exceptions being Gunungsitoli and Telukdalam) contributes to
significant losses, which include the fishers regularly throwing away some of their catches in
the northern zone and the fish traders resorting to the same even in towns like Gunungsitoli.
Prior to the earthquake, ice production was confined to a few small and frequently ailing
ice plants in Gunungsitoli, Telukdalam, Lahewa and Pulau Tello. In Lahewa, for instance, the
government provided a one tonne capacity flake ice making unit after the earthquake, but
according to the person in charge of the ice plant, it was operated for about a month, when it
was realised that the operational expenses were higher than the income and that the flake ice
was also melting too fast to be very efficient. The area where the unit is installed was
subsequently flooded, and the engine and generator are in need of repairs (FAO, 2007). There
were two ice plants one small and one big (capacities not known) in Pulau Tello, which
operated for about 10 and 5 years respectively before folding up for good about three years
ago. The reason for their closure was cited as technical (compressor failure) and funding
constraints came in the way of undertaking repairs to the facilities which have rapidly
become derelict. With their closure, the local fishers have to depend on the ice supplied by
the only export trader in the village, whose boats carry fish to Sibolga and return with ice in
their holds.
65

New ice plants in Nias

As part of the rehabilitation programme after the earthquake, two ice plants were set up in
Gunungsitoli and Telukdalam with a capacity of 10t/day, with the support of the Asian Development
Bank (ADB). This would have been a major step in the right direction as far as meeting the ice-related
needs on the island are concerned, but it was apparently not so, for a number of reasons.

Technical: The major problem with the ice plants is the source of power. To avoid the
uncertainties and fluctuations with the electric power, the two plants have been set up to run with
generator power. This made the cost of ice higher than normal. The outer shell of the ice plants is
iron, which does not improve the efficiency of ice production.
Capacity and distribution related: no fishing centre anywhere in Nias currently has the capacity to
absorb 10 tonnes of ice (or even a fifth of it) per day; smaller ice plants would have been more
economical. There is no storage facility for the ice, which would need to be sold immediately once
produced. The lack of planning to ensure distribution of ice to the other parts of the island means
that the ice plant suffers from idle capacity while the fishers elsewhere suffer from lack of ice.
Economical: Local refrigerator ice is more suited to the economies of scale for the local producers
and traders; the block ice produced by the ice plant (though cheaper in terms of unit price) is still
expensive because of the need to purchase in bulk.
Quality aspects: Poor maintenance of the ice plant (in Gunungsitoli) leads to complaints of poor
quality; this is a temporary problem, but for a first-time user, the impact can be long-lasting.
Management failures: (in Pulau Tello) the poor management of the ice plant has been reported as
a cause for its failure within 10 months of installation, although there exists a sizeable demand for
ice in the area. On the other hand, given the shortage of electricity on the island, it is also
suggested that if the ice plant had been run in the private sector, it would probably have closed
down much sooner than it really did.

As of May 2010, while the ice plant in Gunungsitoli manages to operate on a barely sustainable basis,
that in Telukdalam is no longer functional, pending some major repairs to the infrastructure.

Small freezer-made ice is thus still the main source of ice in most parts of Nias (including
Gunungsitoli and Telukdalam). Given that in 1991 itself the BOBP reported the existence of
a privately-owned 4t/day ice plant in Gunungsitoli, which was reported to be underutilized
because traders preferred to use ice made from privately-owned freezers, the reason for the
current state of affairs with new ice plants may well be due to not learning from past
mistakes! And this is particularly important to note in the light of new proposals being made
in places like Sirombu to set up new ice plants.
Currently, as per the census carried out by FAO-Nias project, there are some 628 homefreezer made ice making facilities in Nias.
The popularity of freezer ice is attributed to: (i) availability close to the landing centres and markets;
(ii) affordability; and (iii) access to fishers in small quantities. The affordability of freezer ice, which
should by definition be more expensive than the ice plant is explained by two factors: one, being
locally made, it does not include the cost of transport; and two, in places like Telukdalam, it is
reported to be made with electricity pilfered from the public supply, which makes the cost of
production almost nothing! Finally, the fact that several traders in Gunungsitoli would prefer to buy
freezer ice (which is made and sold in polythene bags, weighing roughly 1kg) than the cheaper ice
made in the local ice plant (which comes in blocks of 50kg) underlines a fundamental characteristic of
their fish transactions: that they are seldom big enough to require a whole block (i.e., 50 kg) of ice.
Two other factors that make people continue to use the freezer ice are: (i) the sizeable investments
already made in freezers and refrigerators, especially by the export traders, which allow them to be
largely self-sufficient and (ii) the new ice plants have only recently started production and are still not
out of teething troubles; the traders are adopting a wait-and-watch approach before shifting away from
the existing facilities in which, as mentioned, they have already made investments.

66

Naturally, the fishers and fish traders use ice on a strictly need-to-ice basis trying to avoid
or at least postpone its use for as long as they could. The lack of ice contributes to some of
high valued fish supplies being sold into the local markets and a part of the catches going into
dried and smoked form.
Alternative options for making ice accessible to rural areas
Lack of access to ice in the rural areas is the important reason for the fishers and fish traders not
using any (or using the barest minimum) in most areas. Addressing this does not require setting up
ice plants all along the coast because the existing demand in most places (and the local electric
power conditions) does not justify such investment. What is more appropriate is to develop distribution
channels for the ice from the existing ice plants in Gunungsitoli and Telukdalam to reach the different
landing centres on a regular basis. This will help the currently ailing ice plants to generate some
business for themselves. Interactions with the ice plant operators indicate that they would be willing to
provide ice directly to the landing centres, if sufficient demand existed.
In theory, setting up a permanent ice box (PIB) in the landing centres (or in their neighbourhood)
would ensure that ice can be stored over long periods for regular use by different local stakeholders.
The PIB can range in size from one tonne to 3 tonnes, although one tonne may be more than
sufficient for most landing centres in Nias. The PIB can be divided into two compartments, for keeping
ice in one and fish and ice in the other, so the delays in transferring fish from the landing centre to the
markets do not lead to spoilage. Eventually, if the PIB becomes a viable proposition, the fishers also
have the option of being able to keep their fish in the box until it could be directly sent to the exporters
in Gunungsitoli and Telukdalam bypassing the intermediaries in the process.
However, the permanent icebox (PIB) may not always be an ideal choice either because of
constraints related to small catches, lack of appropriate place to set it up, a good institutional
mechanism to operate the system effectively, or in many cases simple village dynamics. In such
cases, provision of large movable insulated iceboxes (ranging from 250-500 kg capacity) of FRP or
HDPE or even wood/aluminium can be explored. Depending on the local need, more than one box
may be provided in each location. The institutional arrangements for the regular operation and
maintenance of the (semi) PIBs will be the key to their success. The producers group may be given
the ownership of the ice storage system, while the everyday management can be based on whatever
is feasible at the local level: a womens group, a local NGO, or the producers themselves. Having a
strong grassroots level organisation (or an NGO with good links with communities) can be ideal for
the purpose. In some cases, given the traders are an important link between the fishers and the
outside world and also given their prominence in fish trade, the local traders may be willing to take on
the responsibility of managing the PIB operations. The priority is to develop a sustainable mechanism
to make ice available in good quantities in rural landing centres and suitable measures to ensure
equitable access to all users and non-monopolisation by the traders must be incorporated into the
project design.

Boat building yards

In 1991, there were no established boat building yards in Nias, and in 2009, there are still no
modern boat building yards. The FAO-Nias census shows the existence of some 31 boat
building sites in Nias (including one FRP boat builder based in Sirombu) besides 54
individual boat builders, but most of the fishing craft are generally built in situ by itinerant
boat builders. These are skilled in construction of traditional outrigger canoes and wooden
plank-built boats although going by the varying lengths and sizes of the boats that one
encounters on the beaches the specifications for boat building seem to vary based on the boat
builders whim. Gallenes assessment (2005) identified boats of 21 different lengths, varying
from 3m to 11m and beyond:

67

Length in m
No of boats

3
38

4
175

4.65
1

5
179

5.25
1

5.5
3

5.6
20

5.7
1

5.95
1

6
498

6.05
1

6.15
2

6.25
1

6.5
30

6.9
3

7
62

8
15

9
6

11
9

x
15

Total
1062

Table (continued):
Length in m
No of boats

6.1
1

This means that any efforts at improving the fishing (and post-harvest) efficiencies onboard
will have to contend with the differences in the sizes and capacities of the fishing crafts, or at
least prioritise the boat size that is applicable to a majority of boats.
In the post-earthquake rehabilitation, many fishers received FRP boats some of which
reportedly made in Hinako Island by an Australian aid agency but there are no FRP boat
building yards or people conversant with FRP technology on the Nias Island itself. One FRP
boat building unit in Sirombu was reported to have built a few boats under French
supervision, but the technical expertise of the people and viability of the enterprise remain
doubtful. The French NGO, ACTED provided 100 plank-built boats to the fishers of northwestern parts of Nias, but the boats themselves were built in ACTEDs own boat building
yard in Aceh Province where the Nias boat builders were taken to get trained in boat
construction before being employed in the actual work.
A Case for an FRP Icebox Fabrication Unit in Nias
While several producers and traders in Nias use iceboxes for the preservation of ice, the nonmotorised canoes and the mobile fish traders (bicycle and motorcycle fish vendors) do not use them
because of the spatial and design constraints. In order to be able to use iceboxes, they need boxes of
specific size and dimensions, i.e., custom-built for the purpose. There is a need to address this need,
which has significant implications for post-harvest and marketing as well as for poverty alleviation.
Having access to an icebox will improve the quality of fish, reduce spoilage and distress sales, and
the overall increase in earnings for the traders can be up to 30 percent.
In order to design, build and test the new iceboxes, there is a possibility for setting up an FRP icebox
research and development centre in Nias, probably in Gunungsitoli. Currently, the HDPE boxes of
various sizes are in use in the fisheries sector, and while they are efficient in storing fish over long
periods and are handy, they are easily damaged and are not easily repairable (at least locally). They
are not made locally and need to be purchased from Sibolga and Medan. Being factory-made they
are not always customised to meet the needs of local users.
To address some of the complaints with HDPE boxes as well as the needs of the large number of
fishers and traders who currently use no iceboxes, there may be opportunities to develop custom-built
boxes using fibre-reinforced plastic (FRP), which have a number of benefits: more efficient, sturdier,
easily repairable, cost-efficient and locally available. Already, FRP has made an entry into Nias
fisheries when FRP boats were provided to the fishers in the reconstruction programmes. However,
no FRP fabrication unit was set up in Nias or any local boat builders trained in the use of FRP
materials. Although there is one FRP unit in Sirombu, it doesnt yet seem to be a viable venture.
It is suggested that setting up an icebox research and development unit in Nias, to be equipped with a
small FRP fabrication unit (requiring a relatively modest investment), would help in better promotion of
iceboxes. It requires training some local youth in icebox manufacture and developing appropriate
iceboxes for onboard and on shore usage in fisheries. Alongside improving access to iceboxes
locally, it also provides employment for a few youth in the construction process. Given the multifarious
uses that the FRP can be put to (from boats to household equipment), the project can become selfsustaining fairly quickly.

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Transport and communications

For an island economy, nothing is more important than access to a strong network of
transport and communication systems within the island and with the outside world. While
Nias has connections to the mainland by air and by sea, the quality and reliability of the
services (except the daily ferry service between Gunungsitoli and Sibolga) remains uncertain.
There is an airport in Binaka, to the south of Gunungsitoli, which is connected by daily
flights from Medan in North Sumatera. There is a smaller airport at Lasondre in Pulau-pulau
Batu island group, and a recently re-started air service connects the islands to Gunungsitoli,
as well as to Padang and Medan on the mainland. No fish are sent by air, but live lobsters are
air-freighted to Medan for onward transport to Singapore.
There is a daily ferrying service from Sibolga in North Sumatra to Gunungsitoli, operated by
Indonesian Ferry and all the fish exported from northern zone of Nias use this ferry. There is
a regular (but not daily) ferry service between Sibolga and Telukdalam and fresh fish from
Telukdalam to Sibolga and dried fish from Sibolga to Telukdalam are transported by this.
Telukdalam and Pulau Tello are connected by a bi-weekly Indonesian Ferry as well as by a
daily private ferry, both of which do carry good quantities of fresh and dried fish from Pulau
Tello to Telukdalam for onward distribution within Nias. Besides, traders in Pulau Tello use
their own boats for carrying fresh fish to Padang and Sibolga regularly, and bring ice from
Sibolga in return. There are boat services connecting Lahewa to the mainland, though the
service is not regular, and the ferry services connecting Sirombu to Sibolga have been
discontinued after the earthquake. Smaller boats carrying passengers and goods also link the
major coastal towns and villages. New jetties have come up in some of these areas and it is
expected that ferry services to the mainland would improve in the coming months.
In 2007, the total length of roads in the two Regencies was a little over 2600 km, of which 58
percent were just mud tracks. Of the 2600 km, over 2100 km (81%) was reported as having
been damaged or badly damaged. Things have certainly improved in the last few years as part
of the reconstruction undertaken after the Earthquake of 2005. Although the narrow
suspension bridges, collapsed bridges, gravel roads and earth footpaths that characterised the
island transport in 1991 (BOBP, 1991) still exist, the study team also observed road laying
work going on in some places on the island. Still, some important fishing villages on the
northern and south-western stretches of the coastline are not connected by road which causes
the local fish catches to be smoked. Also, there are few roads for connecting villages with one
another; for instance, for travelling from Sirombu to Lahewa on the west coast (a distance of
about 30 km as the crow flies), one needs to travel all the way to Gunungsitoli (about 60 km
away) and back again to Lahewa. This reduces mobility for the fishers as well as the traders.
Frequent landslides and coastal erosion cause significant damages to even recently laid roads,
showing the need for constant re-laying of roads and consequent investments60.
Local transport within the island is undertaken by the private sector operators licensed by the
government. In 2007, the number of buses licensed to operate the different routes (mainly
connecting the villages to the nearest town either Gunungsitoli or Telukdalam) was 115 in
Nias Regency, down from 165 in 2005 probably as a result of the earthquake disaster, and 70

60

Better roads also mean more road accidents and, according to UNDSS, road accidents are probably more of a
hazard on the island than any potential tsunami/earthquake. Also, see Hammerle (2007).

69

in Nias Selatan (down from 114 in the previous year). These bus services are the chief means
of transport of people and material to important centres like Gunungsitoli and Telukdalam
from rural areas. However, it has been reported (in Sirombu) that the public transport services
frown upon transport of fish (and especially ice) because of the fear that the melting water
would spoil their other cargoes, especially rice. This has been given as one reason for the
fishers not making efforts to obtain ice from Gunungsitoli ice plant on a regular basis. Apart
from the buses, the motor cycles and trucks are the major means of transport and in Nias
Regency, there were 12,525 motor cycles and 404 trucks registered in 2005 (the last year for
which the data are available). In Nias Selatan, in 2007, the number of registered motor cycles
was 1,380 and that of wagons was 25. The numbers of motor vehicles is increasing by the
year.
Nias is well covered by mobile phone services and the use of mobile phones is extensive
especially in fish trading activities involving mainland transactions. The export fish traders
regularly obtain prices of fish from different buyers in Sibolga before sending a shipment.
The local banking systems are computerised; however, the spread of banks is confined to a
few important locations on the island and, most fish traders direct cash transactions.
Electricity remains a major problem on the island; even in bigger towns like Gunungsitoli
daily power-cuts are the norm, while the fishing villages in the west have no electricity at all.
Generators are used extensively across the island for producing power, which given the
higher costs of diesel on the island (which become even higher when one travels from
Gunungsitoli to a fishing village like Sirombu) mean a fairly big outlay on power. The
uncertainties of electric power necessitated the two ADB-funded ice plants installed in
Gunungsitoli and Telukdalam to use diesel generators and, as we have seen, this has affected
their profitability severely. The lack of access to electricity in Pulau Tello means that a good
quantity of fish on the island end up being dried. In the absence of any immediate plans to
improve the electric power situation on the island, it can be safely assumed that at least 10
percent (and probably much more) of the total fish landings on the island will continue to be
spoiled.
Some actions required in relation to infrastructure:

Efforts to highlight the need for improvement of basic infrastructure on the islands (and not
just within fisheries) electricity, water supplies, roads and transport systems - in order that
the fisheries infrastructure can be viably and productively utilised.
Efforts to ensure better utilisation of the existing infrastructure fish landing facilities, ice
plants, markets through addressing the fishers concerns about using them.
Setting up management systems for infrastructure with community participation for proper
management and maintenance of the infrastructure
Develop a framework for holistic infrastructure development in Nias, along with detailed
guidelines for its implementation, while taking into account:
o Possible repercussions of the new infrastructure on the fishery health (i.e., it should
not encourage more investments in fishing than the ecosystem can bear);
o Implications on trade (i.e., the appropriateness of infrastructure to meet the market
demands, which are increasingly stringent as the products go into international
markets;
o Access arrangements for the stakeholders in different supply chains (the extent to
which the infrastructure caters to the differing needs of various supply chains); and
o The management and maintenance arrangements for the infrastructure.

70

2. Investment and credit

Credit is important to fisheries economy. The seasonal and uncertain nature of the activity,
quick perishability of the product, low investment potential of the stakeholders and long
business cycles mean that access to credit is a pre-requisite in production and trade activities.
Although Nias Island is well-supplied with banks including the government-owned Rural
Bank of Indonesia (Bank Rakyat Indonesia-BRI), BNI, and the private-sector Danamon
Bank, they are confined to a few locations on the island. Interactions with the bankers
indicate that fisheries has not really been high in their portfolio for two reasons. Firstly, the
size of the fisheries-related trade in Nias, even including some of the export traders, is not
really big, and being a low surplus activity, it can be considered a high risk-low return
proposition for investment. Secondly, past experience of the banks with financing activities in
fisheries has not been positive.
BOBP (1991) mentions the MADUNA loan scheme, under which 23 loans were given to fishermen for
outrigger canoes and engines at 12 percent rate of interest, but the repayments were far below
expectations. More recently, in 2006, according to the Business Manager of BRI, the government
channelled Rp.550 million for fisheries development in Pulau Tello under a special programme for
earthquake reconstruction. The funds provided as a loan, channelled through the BRI Bank - were
provided to the fisheries cooperative in Pulau Tello. The fishers mainly used the loan for obtaining
fishing crafts and equipment. The repayment record of the loan has remained extremely poor.

That most institutional credit was linked to government programmes and was channelled
through cooperatives may have severely affected its sustainability. On the other hand, the
individual business requirements are so low as to make financing them uneconomical for the
banks.
While access to institutional credit in fisheries has been quite low everywhere, the lack of
private sources of credit remains more glaring in case of Nias. Although some export traders
seem to have credit linkages with the traders in Sibolga, a majority of the stakeholders appear
to have no access to credit. The few advances that the local fish collectors extend to the
fishers appear to be very small and are more like hand-loans rather than business
investments anyway. Almost all investments from big beachseine boats to simple motorcycle fish trade come from the fishers own purse.
The explanation for why there has been low private sector credit in Nias fisheries lies in the
truly small-scale nature of most fishing and post-harvest operations in Nias. This is
characterised by low-investment-low-return operations which show little surplus income
beyond meeting the fishers needs. Lack of surplus automatically drives away capital,
reducing the opportunities for the fishers to invest in more efficient fishing systems, thus
leading to a vicious cycle, which has spill-over effect on the traders and their business needs.
As per the FAO-Nias census, of the 5000 people from whom information on sources of credit was
obtained, 82 percent reportedly used their own resources, while 10 percent depended on group
savings, 2.5 percent on traders and 5 percent on cooperatives. The reported percentage of people
depending on banks is insignificant at much less than 1 percent.

However, access to investment is an item rather high on the agenda of most fishers, fish
traders and exporters interviewed during the field work. The need for credit to fishers arises

71

from the growing cost of fishing equipment, its repairs and replacement, and even more
importantly to meet the ever-mounting cost of operations because of the high cost of diesel61.
The dugout canoes, which are in need of seeking new fishing grounds, are strapped for
investment to obtain new nets. Also, to meet the growing demand for fish, coupled with the
fact of possible overexploitation of the near shore water and/or increasing competition for
fishing grounds, the fishers will need to improve the fishing systems to catch, handle and land
more fish, which requires investment. The lack of access to affordable credit invariably leads
to entering into a credit relationship with the traders, a process that eventually reduces the
fishers into price-takers in the markets.
On the other hand, the need for credit is likely to become more acute for the traders in the
coming years. As the local as well as export markets keep growing, the traders feel the lack
of access to capital badly. The first manifestation of the growing demand is reflected in
increasing competition for fish at the landing centres. Naturally, growing competition will
lead to (actually, it has been already leading to) increase in landing prices of fish and several
traders especially the poorer people face the need for credit to finance their operations or
be left out of the race.
Access to sustainable and affordable credit thus is a potential need for improving the postharvest and market systems, especially as a means to supporting the poorer stakeholders in
the sector. Some of the fishers and fish traders are however rather averse to taking bank
loans, which is explained to be due to the high rates of interest charged, which reportedly led
to the bankruptcy of business enterprises in the past. The lack of awareness of banking
procedures and the relative aloofness of the banks contribute to the apprehensions. The
Provincial DKPs prospective plan recognises the limitations of the lack of access to credit
for fishers and highlights the need for improving the situation through Credit for Citizen
Enterprises (CCE) and Credit for Food Endurance and Energy (CFEE) as well as setting up
separate programmes for credit for fisherman.
Given the positive attitude of the banks like BRI to supporting fisheries in Nias, there is need
for an honest broker to ensure a more healthy relationship between the banks and the fishers.
The paucity of civil society organisations working with the fishers on the island is a major
gap in this respect. In the post-earthquake rehabilitation programmes, it appears that some
attention was paid to setting up micro-finance initiatives through community organisations.
However, most of these initiatives suffered when the funding agencies finished their work
and withdrew from the island, leaving the fledgling self-help groups to fend for themselves,
with the result that the micro-finance programmes collapsed.
Some actions suggested to improve the credit access to fishers:

Set up community self-help revolving fund mechanisms (i) to help people access credit and (ii) to
link people to the formal lending and development organisations for credit
Make efforts to ensure the sustainability of local self-help initiatives through capacity building,
motivation and advisory support (with possible involvement of local CSOs)
Efforts to build trust between the fishers and the bankers by acting as an honest broker and
ensuring that the fishers needs are appropriately met while the banks get to recover their loans.

61

The Provincial DKPs prospective plans recognize the impacts of increasing oil price on cost of fishing
operations and emphasizes the need for developing fish aggregation devices and oil-saving equipment to reduce
the expenditure on oil.

72

3. Community organisations
According to the Department of Cooperatives and Small Business Development (Dinas
Koperasi dan Usaha Kecil Menengah), Gunungsitoli, there were some 11 fisheries
cooperatives registered in Nias, of which only four are active anymore. The members of the
functioning cooperatives who include fishers as well as traders are reported to use the
funds obtained through the cooperative in their own businesses. The Department is keen on
setting up more fisheries-based cooperatives, especially in post-harvest and marketing areas.
Besides enabling the registered cooperatives to seek bank loans, the Department also
provides seed capital to the group, training and advisory support for their business
development. It also monitors the performance of the group through annual review meetings
and take corrective measures. In extreme cases, the Department also declares a cooperative as
sick, which makes it impossible for the cooperative (or its members) to rise funds anywhere
for any purpose.
For extension purposes, farmers and fishers are organised into groups (based on profession)
which act as receiving mechanism for technical extension services. In Nias, the BOBP (1991)
study finds that the functioning of these organisations varies from good to ineffective and that
the level of participation of the fishers in the groups is limited, which was attributed to the
work patterns of fishers not fitting well with the group activities. In most cases, there appears
to be a consensus that the fishers are difficult to organise into groups.
More recently, some 50 fishing groups (including both capture fishery and aquaculture)
were reportedly formed by initiative from the districts. These include fishers, women and
fish-trader sub-groups. Following the tsunami and earthquake, the fisher groups were used as
vehicles to distribute donations. Anecdotal evidence suggests that once the tsunami and
earthquake funds dried up, the groups became dormant again.62
The available evidence does not indicate the existence of traditional community-based
governance systems (such as the Panglima Laot prevailing in Aceh Province) among the
fishing communities of Nias. One can speculate about the reasons, but given the almost
complete lack of knowledge about the social organisation of the fishing communities in Nias,
it is not possible to do so at this time.
The Himpunan Nelayan Seluruh Indonesia (HNSI) is the Indonesian fishworkers organisation which
has offices in Gunungsitoli and Telukdalam covering the two districts respectively. The organisation is
set up as a cooperative body, with the support of the government, and is intended to act as a channel
63
between the government and the fishers. According to Head of HNSI-Nias Regency in Gunungsitoli ,
all people working in fisheries (harvest and post-harvest) in Nias are, de-facto, members of the
organisation and they represent their grievances and petitions through the village-level offices of
HNSI to the district offices for forwarding to the relevant government organisations. The Head of HNSI
does not have figures of the current membership of the organisation.

The level of civil society action in Nias was low until after the earthquake when a large
number of international and local NGOs began working in the island. Although many NGOs
from the outside have already withdrawn from Nias, there still are quite a few still working.
A list of organisations working on reconstruction activities in Nias in October 2009 is
provided in Annexure B. Only a few of these organisations work with fishing communities
62
63

Although ready to be called into service at the next opportunity

The Head of HNSI is an elected position and the tenure is five years.

73

and virtually no one works on post-harvest and marketing issues. There is scope and need for
including the local NGOs in any capacity building programmes undertaken on post-harvest
and marketing in Nias, which will be necessary to ensure civil society support in the
implementation of the programmes and also the long term sustainability of these initiatives.
Strengthening community-based organisations:
Without strong and viable organisations at the community level, it is very difficult for any post-harvest
and marketing initiative to succeed. Vibrant community organisations are important for several
reasons:

to access credit required for investments in better post-harvest systems

to manage community-based resources like fish landing centres and PIBs
to bargain for a better price in the markets and
to seek new market avenues for their fish eventually
to act as a channel for development support

Suggested actions in this area are:

Taking stock of the past community organisation building efforts to assess the reasons for their
failure in order to avoid repeating the mistakes
Undertake a systematic analysis of the social and economic organisation of the fishing
communities to develop understanding about the existing structures of support and community
action in order to build upon or strengthen them.
Involvement of local civil society organisations, wherever available and efficient, in community
organisation building
Community awareness raising to help fishers realise the need for cooperation and to assist them
in the process through capacity building (including exposure visits)

4. Research, Training and Extension in Nias fisheries

Technological improvements by themselves have failed time and again in Nias because of the
lack of skills and capacity on the part of the fishers to make the best use of them. The local
fishers capacity needs to improve their current activities are enormous, ranging from boat
building skills and engine repairs to better fish handling and preservation. Lacking direct
access to distant markets as well as to up-to-date market information, their ability to bargain
for a better share in the existing markets and to cater to the specific needs of new markets is
severely compromised. Unfortunately, the capacity of those like the officers of the DKP
who hold the responsibility for improving fishers access to resources, services and markets is
not much better either64. There is a clear need for providing extensive exposure to the DKP
staff on all aspects of post-harvest and marketing (including the environmental, social and
economic, dimensions).
There are no local institutes for imparting knowledge, skills and awareness related to fisheries
and post-harvest (including the emerging trends in these areas) to the fishers and to the
officers of the DKP in Nias. As BOBP (1991) notes, the Marine Research Institute (BPPL),
the Marine Fisheries Training Centre (BKPI) and the Agency of Agricultural Extension and
Training Institute (BPLPP) do not have any significant involvement in fisheries in Nias
Island. The Provincial DKP in Medan, North Sumatera, has a division which focuses on (i)
64

An FAO mission in 2007 found that, of the 17 DKP staff in Nias Selatan, only one was trained in fisheries.

74

quality control and processing, (ii) small industry development and (iii) market information
development. The quality control and processing division has undertaken some work in postharvest in Nias, but the extent to which the work of the other sections is relevant to, and
actually reaching, the district DKPs and the fishers remains unclear.
There is one College for Economic Studies near Gunungsitoli, which runs an undergraduate
course. It has little if any emphasis on fisheries. While there is interest amongst the
faculty members to gain understanding about post-harvest and marketing aspects of fisheries
and possible involvement in due course, it is clear that currently the college is not equipped to
work in fisheries.
Several aid agencies undertook capacity building on various topics to varying levels in the
fishing communities (ranging from skill development in boat building to community
organisation management), but the extent to which the communities have been able to put
their new capacities to use is not known.
As the new districts are still being organised, there is opportunity to expose the DKP (and
other government departments which have a role to play in the fishing communities, such as
the Department of Cooperatives and Small Business Development, the Department of
Marketing and Trade, and the Bappada) to the post-harvest and marketing issues so that the
emerging programmes in fisheries in the new districts will have a strong focus on these issues
which have hitherto been largely missing from the development agenda on the island.
Institutional capacity building activities of the FAO-Nias Project
The FAO-Nias project has undertaken a series of capacity building activities for the officers of the five
district DKPs as well as for the participants from NGOs and fishworker organisations. The activities
included an intensive hands-on training programme on post-harvest fisheries, followed by extending
support for undertaking post-harvest extension and development activities on behalf of the project, as
well as an exposure visit to Sri Lanka for selected participants. The trained officers were involved in
fisheries census data collection, in implementing various post-harvest interventions and field-level
awareness/training programmes for the primary stakeholders, in order to give them a firsthand
experience of planning and implementing post-harvest initiatives. Towards the later phase of the
project, the officers were encouraged to undertake the field-level training programmes on their own
and some of the district-DKPs were reported to be in the process of setting up fully fledged postharvest units in the departments, leading to the institutionalisation of the PHF activities.
Alongside this, the FAO-Nias project has also undertaken a number of field-based and activityspecific training courses for selected groups of primary stakeholders involved in fishing, fish
processing (drying and smoking) and fresh fish trade. The trainings in Lahewa and Pulau Tello,
targeting the processed fish producers, gave rise to the formation of two new fishers groups for
undertaking product development and marketing as group initiatives.

5. Fisheries administration
The District Marine and Fisheries Agency comes under the jurisdiction of the Chief (Bupati)
of the district and the Chief of the Provincial Fisheries Service of the Province of North
Sumatera. The main function of the DKP is to manage and coordinate all fisheries-related
activities. The operational budget of the DKP is provided by the district administration, but

75

the project budget also comes from national (Jakarta) and provincial (North Sumatera)
governments65.
It has been mentioned by BOBP (1991) and more recently by Gallene (2005) that the public
sector in Nias is involved in the supply of fuel at major fishing centres and providing some
institutional credit at Gunungsitoli. In 2009, the activities of DKP in Nias came under four
heads: (i) infrastructure development (construction of fishing ports and fish landing centres;
construction of 2 hatcheries); (ii) technical training mainly on fish handling and processing
(both for DKP staff and the fishers); (iii) capacity building (formation of fishers groups,
cooperatives, and monitoring groups for marine and fisheries resources); and (iv) social
welfare (alternative livelihood activities in seaweed, catfish, crab and fish cage culture;
investment support for motorisation, fishing equipment, fish trade and fish processing). Apart
from the technical training component, the others are mostly reported to be not yet
operational or not very successful.
An important activity of the DKP in Nias is the resource conservation and management
programmes. The DKP of Nias Selatan has also been organising measures to control illegal
fishing in the seas surrounding Pulau-pulau Batu island group.
Four issues seem to be of concern relating to the current programmes of DKP.

The first of these relates to the lack of strong bonds between the fishers and the DKP
although this varies from place to place and from person to person, the lack of
institutionalised systems to ensure regular and close contacts between the fishers and
DKP are quite evident.
The second concern, which relates to the first, is a certain lack of direction, an
overarching, systematic, plan of action for specifically addressing the needs of the fishers
of Nias66 (also reflected in the lack of reliable data on the number of fishing villages,
fishers and other stakeholders in the sector, quantities of fish going into different markets
and so forth). The emergence of new districts might address this gap to some extent, but
there is a need to provide some sort of direction to the effort.
The third concern relates to the frequent turnover of staff. While the middle level
functionaries are likely to stay put in a place for a few years at least, the managerial staff
get transferred rather quickly and this does create a vacuum at the decision-making level
and in seeing the activities through to their logical conclusion.
The final concern relates to the system of lateral transfers in the administration, whereby
people from one department get moved into another. While this can be argued to have its
benefits in providing the officers with an all-round knowledge of the administration, there
is also the attendant problem of not being able to master the issues pertaining to a sector
(especially one as complicated and technical as fisheries) before its time to move on!

Besides the DKP, other district-level departments having a role to play in fisheries and postharvest include: the District Planning Agency (Bappeda); the Department of Cooperation and
Small Business Development (Dinas Koperasi dan Usaha Kecil Menengah); and the District
Agency for Industrial and Trade Affairs (DISPERINDAG).

65

Taken from BOBP (1991), needs updating especially in the light of decentralisation that took place in 1990s.
FAO (2007) mentions surveys being carried out by LIPI, Indonesian Institute of Sciences, on fisheries and
aquaculture potential on Nias, but the reports could not be secured for this overview.
66

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6. Policy and development plans

The Government of Indonesias Fisheries Revitalization Programme was launched in
2005 and is intended to be pro-growth, pro-poor and pro-jobs, and has the following three
strategic objectives:

empowering welfare of small-scale fishers and fish processors;

empowering competitiveness;
protection of environmental resources and conservation.

The North Sumatra Province Marine and Fisheries 2006-9 Strategy/Work plan outlines
the focus of fisheries development in the Province and Nias Island. The objectives of this are
to promote business development, good environmental conditions and improve the well being
of the population. The Provincial mission is to:

develop the fisheries sector including aquaculture and improve the livelihoods of
coastal fisher folk;
optimize long-term production and efficiency;
promote the consumption of fish and increase the availability of fish for industrial
processing, for the local market and export;
improve access to technology, credit, infrastructure and improve the business
environment.

The plans are outlined according to three geographical areas of the province: east coast,
centre and west coast. The West coast plan includes Sibolga and Nias Island and is focused
on developing the handling systems for key species and marine aquaculture including sea
cucumber and seaweed.
Much of the emphasis in the Nias District government Five-year Master plans is focussed
on infrastructure development (TPI, markets, jetties), the provision of boats and aquaculture
development. There are also proposals to undertake an Eat Fish programme to popularise
fish consumption and to set up a fish powder plant using unsold fish with private investment,
although no private investor has so far shown interest in the project.

7. Market linkages with mainland

An important characteristic of the export traders in Nias is that their operations are part of
large family businesses centred on Sibolga and, to a lesser extent, Padang. The family
businesses are spread right along the length and breadth of the Sumatera Island, of which the
Nias part of the business is only a small part. In fact, going by the volumes of fish traded by
the Sibolga family businesses (which could often be supplying to bigger export and trading
houses), Nias contribution is miniscule. One important inference from this is that, in terms of
fish trade, Nias is dependent on Sibolga and not the other way round and this will need to be
kept in mind when discussing expanding or diversifying market opportunities. The familybusiness orientation of the export supply also means that the traders have little incentive to
break the system and explore new opportunities away from Sibolga. Even if they (or some
other major private sector player) were to show interest in diversifying their markets to other
areas, the reach of the family businesses in North Sumatera will act as a major obstacle to
realise better returns.

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Also, for the Nias exporters, there are logistical problems in trying to bypass Sibolga. As one
trader explained it, in order to be able to supply directly to Medan, for instance, the trader
would need to have at least one or, better, two tonnes of product to sell every day, which is
simply impossible to obtain in Nias67. Even if they do manage to reach Medan regularly, the
margins are not that big to justify the risks68. The Sibolga traders make profits from the
internal trade mainly because (i) they own the ice and transport infrastructure, (ii) they have
well-oiled systems of trade, including regular supply arrangements with the big fish retailers
and (iii) their turnovers are big enough to generate a sizeable profit on even small margins.
Sibolga is also the only place in North Sumatera which has a well-developed distribution
system all over Indonesia and elsewhere, so trying to bypass it is fraught with more risks than
benefits for the Nias traders. Consequently, there is little scope in the near future to break the
Nias exporters dependence upon Sibolga.
FAO-Nias projects interventions in fish marketing:
Fish marketing information systems: The Fish Marketing Information System (FMIS) in Nias
became operational on a pilot basis in February 2010. Data collection is made at five landing centres
in Nias (covering one in each of the five districts) and two markets in Sumatera (Sibolga and Padang).
The data collection is being done by enumerators trained by the project in the FMIS process and the
consolidation, upload and dissemination is being carried out by INFOFISH. Currently, fresh fish prices
for 10 species are being broadcast twice a week to the users in Nias, who include fishers, fish traders
and the local DKP staff. The FMIS data are also presented online. Alongside the price information
from the enumerators, the FMIS also broadcasts, on a fortnightly basis, the price data for the same 10
species from Singapore and Kuala Lumpur markets obtained from INFOFISH. At present, some 51
people receive the fish price data as SMS messages and the recipients include traders in Sibolga and
Padang as well. All the same, given the current state of development of fisheries and fish supply
chains in Nias and also the need for a nation-wide fish market information network, it is probably too
early expect sustainable benefits to come out of the pilot study.
Market diversification for dried fish: Alongside the activities targeting improving the quality of the
processed fish products and reducing losses, the FAO-Nias project also undertook test marketing for
improved quality dried and smoked fish products from Pulau Tello and Lahewa. The project
intervention included providing support for better quality processing and quality control, packaging
and exploring new market linkages. The new markets explored included both the local (i.e.,
Gunungsitoli) and non-local (i.e, Medan). Within the local markets, new avenues of sale, such as local
grocery stores and the airport, have been explored and have showed positive outcomes.
Market studies and surveys: In a context where the local production is not big enough to reach the
minimum quantities required to get economies of scale, it might be worth exploring small niche
markets for branded products from Nias, based on the uniqueness of the product, or the
cultural/symbolic value of the label Nias, targeted at particular sets of consumers (urban,
middle/upper class). In this connection, the FAO-Nias project has commissioned a detailed market
study to provide a clear understanding of the costs and benefits of new market enterprises for
targeting new markets in distant areas (Medan, Jakarta) as well as abroad (Singapore and Malaysia).
While the project itself may not be able to use the study findings, it is hoped that the study itself will
provide a good understanding of the issues involved, and the ways forward, for future initiatives in this
regard.

67

One trader in Telukdalam claimed to be sending his fish to Medan, via an intermediary in Sibolga who
apparently ensures re-icing and re-packing of the fish before sending them by road to Medan. However, given the
small quantity of fish that the trader said he sent to Sibolga every week (1-1.5t) and also given that the Sibolga
traders collate fish from different sources to get the necessary bulk to be able to access Medan markets, it is
likely that his transactions are confined to the trader in Sibolga though his fish might in fact be selling in Medan.
68
However, the traders explain that fish prices in Medan tend to be more stable than those in Sibolga, where the
constant influx of fish from all over North Sumatera means frequent fluctuations.

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8. The earthquake-2005 and the fisheries sector

Nias is the earthquake country: in 2007, for instance, the island recorded 19 earthquakes at
an average of 1.6 per month. The frequent earthquakes gave rise to Nias being named Hulo
solaya-laya, or the Dancing Island, by the 14th Century chroniclers69.

Impacts of the earthquake

On 26 December 2004, a tsunami struck Nias Island, North Sumatra Province, and killed 140
people and caused hundreds of families to become homeless. Though the tsunami affected the
island, the damage was relatively light compared to the havoc it created in Aceh. A massive
undersea earthquake with magnitude 8.7 on the Richter scale struck at 23.00 hours on 28
March 2005 and was followed by multiple aftershocks measuring 6.0 and higher. This second
earthquake had an impact far exceeding that of the tsunami on the island. Nias's coastline has
changed markedly with the tsunami and earthquake. In some areas, the coast has moved over
50 m inland. In other areas, as much as a further 100 m of land is exposed from the sea. The
uplift of land has been recorded as being as much as 2.9 m. Some 839 people were killed and
another 2 236 individuals were seriously injured. The quake caused widespread structural
damage to houses and facilities in the whole territory of Nias district resulting in 70 000
people becoming homeless. In Gunung Sitoli, the Nias district capital, 80 percent of homes
and buildings were destroyed.
Assessments, including those of the International Organization of Migration (IOM) and the
Bureau of Rehabilitation and Reconstruction of Aceh-Nias (BRR), indicated a severe
disruption of the local economy as a direct result of the earthquake disaster. Overall, 90
percent of the island residents were directly affected, while many outsiders involved in the
local economy and trade, estimated between 10 000 and 20 000 in number, were forced to
leave the island. Those who left Nias after the disasters were predominantly traders of ethnic
Chinese origin, who traditionally constituted a major part of the business on the island and by
2008 some had returned and taken up trading activities again.

Rehabilitation efforts in fisheries

Several UN agencies and international finance organisations have undertaken or have
ongoing programmes for post-tsunami/earthquake rehabilitation and longer term social and
infrastructural assistance. Many of the fisheries development initiatives have focused on the
provision of inputs and the promotion of aquaculture. The following table summarizes some
of these initiatives.
Agency
JICA
Hoilanaa
Oxfam
UNDP
AIPRD
ILO
ADB-ETESP
ADB-Coremap

69

Support
boats and related training
Boats
boats, TPI rehabilitation, credit
credit for fish aquaculture and related training, boats
seaweed culture
training in fishing techniques
seaweed, grouper culture, grouper hatchery
seaweed, grouper, crab culture

Johannes Hammerle, 2007

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Agency
ADB-DKP(?)
BRR
Church World Service
Yewu
Wetlands International
YEU
LEAP
United Diversity Forum

Support
Boats, ice plants, fish landing centres
boats, grouper culture, TPI development
Boats
Boats
crab culture, boats and nets
credit for fishing groups
Boats
Boats

An appraisal of the fisheries support programmes conducted by an FAO mission in 2007

(FAO, 2007) found that the fisheries-related activities included the distribution of 51 boats
with fishing gear, 200 insulated ice boxes and 58 boat engines. Training in fish handling and
responsible fisheries was given to 100 fishers each, and twenty boat builders were trained,
received tools and materials for boat construction.

Outcomes of the rehabilitation efforts for the fishing communities

For the fishing communities, the rehabilitation has certainly meant going back to normal in a
relatively short span of time. The fishing systems in areas like Sirombu and Lahewa have
improved and so has their capacity to stay out longer and catch more fish. However, the
reconstruction efforts seem not to have touched some of the more critical and fundamental
constraints that the fisheries sector in Nias faced even before the earthquake. These included
the poor forward and backward linkages in terms of infrastructure, market linkages,
institutional arrangements, costs and earnings, credit and investment arrangements, besides
the sustainability of the fishery resources. The result is that while the capacity of the fishers
to fish more may have gone up, this does not always lead to commensurate increases in terms
of value. Similarly, the traders some of whom have received iceboxes may have better
access to storage systems for fish, but without sustainable and affordable access to ice, the
storage systems add little value to their businesses. While the government initiatives did aim
to address some fundamental needs, such as fish landing centres, ice plants, fish markets and
road network, the lack of involvement for the fishers in the decision-making processes and
lack of planning relating to the economic, social, and institutional viability of the initiatives
has meant that they ended up being answers in search of a question. The other problem,
already mentioned, relates to the capacity of the fishers to operate the new boats, and to repair
and replace them when the time comes. Several boats provided under the reconstruction
programmes developed repairs and many of these are no longer functional, and the fishers
seem to go back to the dugout canoes which are the only boat they can afford to buy and also
the only technology they can take for granted. The few initiatives related to aquaculture
(seaweed culture, crab culture) have not really managed to sustain themselves once the
external support is withdrawn, while interventions such as new smoking systems failed in so
many ways that they could never be put to commercial use. The micro-finance initiatives, as
indicated, did not have time enough to stabilise into sustainable initiatives before some of the
funding and implementing agencies withdrew from Nias.
This is not to belittle the achievement of the aid efforts in the post-earthquake period, but
only to point out how a little more planning and longer involvement with the Nias fishing
communities would have led to a much more sustainable development path.

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7. DISCUSSION: CONSTRAINTS FOR DEVELOPMENT OF NEW FISH

SUPPLY CHAINS IN NIAS
There are two options to improve the post-harvest and marketing systems in fisheries:

Option A: Develop new supply chains to diversify the market opportunities with new
species, new post-harvest activities and new stakeholders
Option B: Improve the efficiencies in the existing supply chains by addressing the gaps
and constraints currently affecting optimisation of activities

Obviously, it will be in the best interest of the target beneficiaries to explore both options, but
first it will be necessary to summarise the conditions prevailing in Nias fisheries prior to
assessing the feasibility of either of the options to suit the local context.

1. Level of development in Nias fisheries

Going by the available evidence, the fishing economy of Nias can be said to have three feet in
a pre-modernisation70 stage of development and one foot in the modernised stage of
development. FAO (2007) provides a SWOT analysis of the fisheries and aquaculture sectors
in Nias.

The pre-modernisation model implies small-scale economies, which mean that the incomes
from fishing and fish trade (including exports) are barely sufficient for the people to meet
their subsistence needs, leaving very little surplus for other investments. This is reflected in
the case of Nias in:

70

Basic fishing technologies able to harvest small quantities of fish;

Or, in more popular local usage, traditional stage of development

81

Basic post-harvest systems, losses in the supply chain being built into the
production/market costs;
Local markets, offering little incentive for bigger or better catches (frequently there are
negative incentives e.g., big catches depress prices; better quality means more costs for
same returns);
Small and isolated fishing communities, characterised by weak infrastructure for landing,
preservation and transport;
Small surpluses, hence low investment capacity to upgrade the existing systems
Lack of skills, knowledge and awareness at the fishers level to undertake improvements
to the system, frequently explained away as conservative mindset;
Poor access to credit systems for improving efficiencies and diversifying activities.

Although there is evidence that the pace of modernisation is gradually increasing in Nias, as
evidenced by the growth of export supply chains and the use of ice in recent times, it has to
be recognised and accepted as a long drawn out process and one that cannot really be viable
unless some massive investments are made in the sector for improving the technological,
infrastructural, social, human and economic systems of organisation of the sector.

2. Availability of, and access to, fish resources

For any new marketing initiative, the basic need is the access to sufficient surpluses in the
system that would, besides servicing the needs of the existing supply chains, still be able to
cater to a new market sustainably. Given that the local demand for fish in Nias is largely
being met with the existing resources, the only new markets are those outside the island, in
other parts of Indonesia and abroad. This implies access to rather big quantities of surpluses
on a consistent basis to be able to develop and sustain the demand.
An important observation from this study about Nias fisheries is that, once the fish going to
existing supply chains are accounted for, there are hardly any surpluses; even if there are a
few, these are either seasonal or of the order of tens of kg rather than the tonnes that would be
required for a major marketing initiative. There are no indications of large-scale conversion
of fish into dried form or into animal feed, of fish being discarded at sea, of any other
standard indications that there are too many fish and too little market access. Whatever is
being caught seems to be more or less adequately absorbed into the supply chains, albeit
suffering from several post-harvest and marketing constraints. In fact, some of the existing
supply chains appear to be quite capable of accommodating a further increase in production
(provided the existing constraints are sustainably addressed).
The reason for lack of big surpluses has probably less to do with the health of the fisheries
and more with the existing fishing systems: mostly small-scale fishing boats, only partly
motorised, with very little carrying capacity onboard and undertaking fishing with hook-andlines. The size of the catches is not really sizeable to encourage a major thrust towards export
markets, especially when it is considered that the catches consist of some 60 species landed
by about 6000 boats along a 400 km coastline, which after discounting the fishers own
consumption needs and supply chain losses, leaves very little surplus71. Furthermore, the
71

Hilinamazihona, near Lolowau, has 10 non-motorised outrigger canoes, the catches of which are barely
sufficient for three women traders carry to the neighbouring markets for sale; the demand itself is small enough
for the women to return with unsold fish! The average income per boat per trip works out to about US$1, and it is
probably the ownership of agricultural lands and pigs that keeps the economy going.

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reported increase in catches is complemented by a possibly bigger increase in the number of

boats, indicating static or even falling catch rates.
A recent study by Dhewani and Marenda (2009) provides data from eight COREMAP areas in Saw
and Lahewa sub-districts in Nias Regency over a four-month period from August to November 2008.
The study found that the average quantity of fish for each landing site ranged between 250-450 kg per
month. Leatherjackets dominated the landings during this period, caught by traps (Galawa),
accounting for 35 percent of the total landings followed by flying fish and scad. No information is given
on the number of boats and the fishing trips, so it is difficult to estimate the catch per unit effort
(CPUE), but the average quantities for a landing centre as a whole ranging between 250-450 kg per
month are illustrative of the scale of fishing in the region.

In other words, big surpluses from fishing can only come when the existing fishing systems
become bigger and more efficient, a cure that has proven to be worse than the disease
worldwide in the last fifty years. This leads us to the next question: the health of fisheries in
Nias waters. DKP-Nias Regency gives (in WWF, 2008) a figure of 162,436 ton as the
estimated potential yield from the north Nias waters (i.e., excluding Nias Selatan)72, which
suggests possibilities for increasing production, but this will need further corroboration,
especially in the light of complaints by the fishers of declining catches and catch rates in the
near-shore waters.
Interactions with the fishers and the government officers indicate that some of the fisheries
are in better health than others, while some others are not so healthy and are probably overexploited. The health of a resource also varies from place to place. The fishers in and around
Gunungsitoli complain about falling near-shore catches and devised new systems like the
mother-boat concept to shift fishing into deeper waters. The western parts of Nias are
probably less exploited than the eastern parts; however, this very factor actually encourages
the fishing fleets from Padang and Sibolga to operate in large numbers in these waters,
resorting to destructive fishing methods like trawling and bombing 73, and in general reducing
the availability of fish for the local fishers. The negative impacts of such fishing methods has
been so severe on the biodiversity (including the coral reefs) that the DKP of Nias Selatan is
coordinating a major offensive against the illegal fishers and fishing in Nias waters, including
the Pulau Pulau Batu island group.
Offshore fishing (from FAO, 2007)
The government is planning to donate/give a confiscated larger foreign fishing vessel to Nias. The
district would like to use this vessel to explore the opportunities for offshore fishing. However, there is
no staff trained to operate such a vessel. Generally, the districts expressed interest in developing an
offshore fishery for Nias. This raises the issue of the status of the offshore resources, where such
larger vessels would land their catch, and if/how the post harvest sector could accommodate an
increase in fish supply. The suitability of support to the development of offshore fishing capacity
needs to be carefully examined.

Given the history of commercial fishing around the world, it is safe to assume that the fish
resources in Nias are being exploited at or near the maximum sustainable level. Further
increases in fish catches can only be proposed after a more comprehensive assessment of the

72

See
also
http://kennortonhs.wordpress.com/2007/07/11/potensi-perikanan-pulau-nias-yang-belumdikembangkan/
73
It has to be mentioned that the destructive fishing practices are not confined to the mainland fishing fleets
alone; the local fishers too are known to indulge in some illicit fishing practices.

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stocks and their exploitation patterns. This leads us to conclude that it is wiser in the short
term to focus attention on the existing supply chains and taking measures to strengthen them
by reducing losses and increasing the producers stake in the markets.

3. Access to markets
Even if focusing attention on new market supply chains elsewhere in Indonesia and abroad
with the existing catches (i.e., without increasing production) might make better economic
sense, it is still not advisable from an equity and food security perspective. As the foregoing
account of the market supply chains has shown, a majority of stakeholders in fish supply
chains are working in the local fish supply chains. And most of these people are poor and
have little access to alternative livelihood options. A new market supply chain focusing on a
distant market would automatically require capital investments and some sort of organisation,
which will immediately bring in a handful of new entrepreneurs at the expense of thousands
of poor fish traders already existing in the system. True, a few of the fishers might get
employment in the new enterprises, but the proportion of poor people who lose out
completely will be unacceptably high.
As example, one might compare the number of people currently involved in local fresh fish
trade with those in export trade: as against thousands of traders (i.e. independent actors) in
the local supply chain, the total number of export traders does not exceed 20 (of these, only
10 are the big traders, the rest largely supplying to them). Even including the number of
collection agents and ancillary workers in the export supply chain, the numbers cannot
exceed a maximum of 200. The other implication of channelling the existing supplies to
distant markets will be on the local fish consumers. In case of Nias, which is an island that
depends on the mainland for a number of its basic needs, fish is one of the few locally
produced commodities and hence more affordable. Given that a majority of people
consuming fish in Nias tend to be poor (the saying goes that for most coastal people in Nias,
rice and dry fish are enough to survive), taking the fish outside Nias, however lucrative it
might be, cannot be justified.
Aside from this, the existing linkages with the Sibolga markets will also mean that any efforts
to diversify the fish to other markets in the short term might lead only lead to marginal
benefits at best and the disintegration of a relatively efficient market base at worst

4. Access to social capital

In a context where the fishing systems are characterised by low per capita fish catches,
collectivisation of the fishers and fish traders as an economic entity is essential to obtain the
necessary economies of scale for reaching new markets or to bargain for a better share in the
existing market. Even at the local level, collective organisation of fishing and post-harvest
can help obtain better values, reduce losses and cut costs of preservation and transport.
Typically, in pre-modernisation fisheries, social capital (i.e., social bonds and relationships
within and between communities) plays a critical part in the organisation of the activities.
However, in case of Nias, this seems to be a particularly weak spot. The absence of a
community governance system like Panglima Laut (prevailing in Aceh) or any good
cooperatives underlines this fact. The fact that the 70 fishing villages on the main island are
scattered along a long coastline of 400 km and are isolated (especially along the west coast),
means that the scope for strong inter-village networking and relationships is limited. That the
84

fishers in a community are frequently too few and are a minority within the larger community
also reduces the opportunities for close community-bonding. Poor road connectivity and
cultural diversity further reduces the opportunities for lasting bonds to be forged across
fishers of different communities74. All such factors contribute to fishers not being organised
into strong, at least partly self-sufficient, entities. On the other hand, the family ties and clan
links are very important in the traditional social organisation of Nias; one can only speculate
how much of the clan-based, exchange-oriented, social organisation of the Ono Niha,
described by Beatty (1992), found a place in the organisation of the fishing communities.
The lack of appropriate community-based organisations in the fisheries sector in Nias is a
major constraint for undertaking any important post-harvest or marketing interventions;
however the answer is certainly not setting up more cooperatives and fishers groups. All past
efforts at cooperative development, applied from the top (or, at best, from the outside), have
not only failed but also made things more difficult for future efforts at collectivisation of the
fishers. The promise of support mostly financial to help groups has been counterproductive because, in every case, instead of being an incentive, the promise of money
became the objective of collectivisation and, once it was received, the collective had no more
reason to continue, so it folded up in all but name. This state of affairs led the BOBP study
(1991) to conclude that, given the lack of formal or informal community institutions in
fisheries, working directly with individuals, families or small groups might be a suitable
alternative, while need must be taken to ensure that this would not be a source of conflict
within the villages. The community organisation building efforts in the post-Earthquake
period also focused on the individual needs of the fishers and used the collective as a means
to channel resources to them, rather than to explore the possibilities that the fishers can
explore as collectives75.
There is thus a big gap in the current understanding about the ways forward in working with
the fishing communities. There is certainly need for a more thorough investigation of the
social structure and organisation of the fishing communities in Nias because it has
implications for undertaking any development action. Such a study may well conclude that
the BOBP way of working with individuals, households and small groups is probably the
only option in the short term, but might at the same time, provide some understanding about
the systems and processes in the communities which would be amenable to collective action
at a future date. One thing is for sure: the idea of collective cannot be imposed from outside:
it has to come from within. Whatever the options, one can say that the existing systems of
social organisation are not ready to cope with the demands of new market supply chains.

5. Access to infrastructure
Access to infrastructure landing centres, quick preservation and transport systems, roads
and communication systems are an essential necessity for any fish supply chain. The level
of development of fisheries-related infrastructure in Nias has a long way to go before it can
even meet the needs of the existing supply chains. The earthquake generated considerable

74

One may tentatively suggest that this may also have something to do with the culture of the Ono Niha, which is
characterized by hierarchical organization within the communities (which included slaves) and internecine
warfare between neighbouring communities (taking slaves appears to have been a more interesting and
obviously lucrative activity than farming).
75
The few group-based initiatives like fish smoking and sea weed cultivation failed to understand and address
the institutional, economic and market-related requirements and hence failed.

85

interest in Nias and its fisheries, which could have been an opportunity to undertake some
basic changes to the production, post-harvest and marketing infrastructure in the island.
While this has taken place to a limited degree, the extent to which this contributed to
improved handling, processing and marketing of fish remains doubtful.

6. Access to human resources

The fishers of Nias lack skills to improve efficiencies of the existing systems and to diversify
fishing activities to target new species, new products, and new markets. Isolated existence in
a remote village on a small island cut off from the mainland has meant that they have very
little exposure to the wider trends in fisheries and fish marketing. There is little access to
market information from the existing supply chains, let alone new markets. Together with the
absence of a host of other necessary factors required for scaling up, the lack of skills
contributes to loss of confidence and a passive attitude towards life. Unless a vigorous
capacity building programme, including skill development as well as exposure visits to the
mainland and more developed markets in Singapore and Malaysia, is undertaken, it is
doubtful that the local fishers would have the capability to meet the demands of a new market
supply chain, especially if it involves following the constantly changing and ever tightening
global seafood quality standards.

7. Access to investments
An important pre-condition for accessing new markets with increased production, better
handling and processing systems, rapid transport is the access to investments and credit. With
little institutional credit (or a sustainable credit delivery and recovery mechanism) in place
and with no private sector investments in fisheries, the capacity of the local fishers and fish
traders to find the necessary investments to target and reach new markets is practically nil.
Given the state of fisheries and the basic services available in Nias, there is very little interest
in private sector investments in increasing production, processing or marketing activities.
Interactions with an exporter-processor in Medan and with the trader-exporter in Pulau Tello
indicated their unwillingness to invest in fisheries-related infrastructure and facilities in Nias
as the many uncertainties attendant upon any enterprise are feared to make it highly risky.
There is a strong need for government to undertake major interventions in developing basic
infrastructure and services to create conducive conditions for active private sector investment.

8. Conclusion
In conclusion, it can be said that the current production, post-harvest and market systems in
Nias are not sufficiently evolved to develop and sustain a new supply chain focusing on
external markets. The option may still be left open and probably a few market studies
undertaken to obtain a better understanding of the marketing opportunities for fish. But it is
more important to recognise that, there is much value in trying to address the gaps in the
existing supply chains through loss reduction and value addition.

86

8. CONCLUSION: NEEDED A HOLISTIC FRAMEWORK FOR POSTHARVEST AND MARKET DEVELOPMENT IN NIAS
The key conclusion that can be drawn from the foregoing chapters is that the fisheries sector
in Nias Island is definitely in need of a major overhaul to bring it more into line with the
wider trends and processes in Indonesia and elsewhere. Major investments will need to go
into a range of areas, both fisheries and non-fisheries related, including:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.

Fisheries management
Fishing technology
Post-harvest technology
Human resource development
Community organisation strengthening
Infrastructure
Investment and credit
Market support
Socio-economic development

Some suggested actions in most of these areas are provided in the relevant sections in this
study. It is not always necessary for all activities to be implemented simultaneously, but a
broad strategy covering these areas would still have to be available to guide future
interventions in the sector. The intervention process in each area can identify a range of
actions to achieve the objective and divide them into short-term, medium term, and longterm, which will not only facilitate suitable budgetary and manpower allocations from the
government, but also allow other development programmes and projects to take part in the
process according to their project expertise, funding and timescales.
What this implies is that the process of reform will be a long and costly affair involving
major investments in basic infrastructure, capacity building and technologies, not only
pertaining to post-harvest fisheries or even fisheries, but covering a whole range of systems
and services at the wider societal level. It also requires strong political will and commitment
to see it through to the end.
Two other conclusions follow from the above: one, the size and scope of the reform process
will mean that it will be beyond the capacity, means and timeframes of any small
development initiative like the FAO-Nias project to undertake the reforms by itself and
see them through to a successful and sustainable conclusion. At best, the development project
can provide a direction and some guidance for the process. Second, given the nature of
activities into which investments will need to be made, there may not be much private sector
contribution to the reform process itself, although this would change as the basic conditions
in the sector improve alongside opportunities for investments.
This means that the onus of carrying out a major overhaul of the prevailing systems in Nias
will largely fall on the government itself, which can however be supported in the process by
the development initiatives of agencies like the UN-bodies, other donors and international
organisations. There is a need for a Master Plan for development to be prepared for Nias as a
whole, which will form the basis of all future development action in the island.

87

REFERENCES
BAPPEDA, Kabupaten Nias Selatan, 2008. Nias Selatan in Figures, 2008, with the
cooperation of BPS-Statistics of Nias Selatan Regency, with Regional Development
Planning Board of Nias Selatan Regency (BAPPEDA), ISSN: 0215-353, Katalog BPS
1403.1214
BAPPEDA, Kabupaten Nias, 2008. Nias Dalam Angka Nias in Figures, 2008, with the
cooperation of BPS-Statistics of Nias Regency, with Regional Development Planning
Board of Nias Regency (BAPPEDA), ISSN: 0215-353, No.Publikasi:
1403.12.01.07.01
BAPPEDA, Kabupaten Nias, 2008. PDRB: Produk Domestik Regional Burto, Kabupaten
Nias 2008, Kerjasama Badan Perencanaan Pembangunan Daerah Kabupaten Nias,
Dengan Badan Pusat Statistik Kabupaten Nias.
Beatty, Andrew, 1992. Society and Exchange in Nias, Oxford: Oxford University Press.
1992. Pp. xii + 322
Bente Wolff, 2007. Local perspectives on tourists and other outsiders in South Nias,
downloaded from http://www.nirn.org/pdf/070614_wolff.pdf
BOBP, 1991. The Fisheries and Fisherfolk of Nias Island, Indonesia, A description of the
fisheries and a socio-economic appraisal of selected fishing communities on this
island off Sumatera, Bay of Bengal Programme Working Paper 78, Madras.
BPS-Statistics, Indonesia, 2008. Village Potential Statistics of Province of Sumatera Utara,
2008, Badan Pusat Statistik, Jakarta-Indonesia.
Christian Warta, 2007. Reconstruction with drawbacks: Small Nias, Large Change,
downloaded from http://www.nirn.org/pdf/070614_warta.pdf
Dhewani, N and Marenda D.R. 2009. Pemantauan Perikanan Berbasis Masyarakat (CREED)
di Kabupaten Nias Tahun 2008. Coral Reef Information and Training Center
(CRITC), COREMAP II, Jakarta
DKP-Kabupaten Nias, Statistik Perikanan Kabupaten Nias, Tahun 2008
DKP-Propinsi Sumatera Utara, 2007. Buku Statistik Perikanan Tangkap Propinsi Sumatera
Utara, 2007, DKP-Propinsi Sumatera Utara.
Esser, J., Johnson, C., Salagrama, V. and Marriott, A. 2003 Trainers Guide to Controlling
Blowfly Infestation of Traditionally Processed Cured Fish, Department for
International Development, London, 98 pp. English.
FAO, 2007. Agriculture, Fisheries and Aquaculture projects appraisal mission to Nias
Island, North Sumatra Province, Indonesia, Supported by GCP/INT/984/MUL and
TCP/INS/3002, draft report, FAO-Bangkok
Gallene, J. 2005. Assessment of the fisheries sub-sector after the earthquake of 28th March
2005 in Nias and South Nias Districts, FAO Fisheries Tsunami Emergency
Programme, FAO.
Johannes Hmmerle, 2007. Society and culture in Nias, downloaded from
http://www.nirn.org/pdf/03_070614_haemmerle.pdf

Pemda Su 2005. Long Term Planning of Provincial Development, Provinsi Sumatera Utara,
2005-2025
Uwe Hummel, 2007. The History of Protestant Mission in Nias and the Batu Islands (18651965), downloaded from, http://www.nirn.org/pdf/070614_hummel.pdf
Viaro AM & Ziegler, A (2006). Traditional Architecture of Nias Island, Penerbit Yayasan
Pusaka Nias, Gunungsitoli.
WWF, 2008. Prosiding Workshop Membangun Kebijakan Pengelolaan Pesisir dan Laut
Berkelanjutan di Kabupaten Nias, Gunungsitoli 13-14 Juni 2008, P3MN, WWF &
Dinas Kelautan dan Perikanan Kabupaten Nias.
88

ANNEXURE: A CENSUS OF THE FISHERIES SECTOR IN NIAS

Contents
1. District-wise list of coastal fishing villages in Nias.......................................................... 90
2. District-wise numbers of people in fishing and post-harvest ........................................... 92
3. District-wise numbers of active fishworkers by gender .................................................... 97
4. District-wise numbers of fishing boats by variety ............................................................ 98
5. District-wise details of fishing gears used in Nias .......................................................... 104
6. District-wise details of fisheries supporting infrastructure in Nias.................................. 110
7. District-wise details of basic infrastructure facilities...................................................... 116
8. Source of capital in fisheries activities........................................................................... 122

89

1. District-wise list of coastal fishing villages in Nias

Village
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

Nias
Tagaule
Botohaenga
Gazamanu
Sisarahili
Dahana
Bozihono
Biouti
Wea-wea
Somi
Gido sebua

Nias Utara (main

land)*

Afulu
Faekhuna"a
Sihene'asi
Moawo
Pasar Lahewa
Balefadorotuho
Muzoi
Hiligeo Afia
Teluk Bengkuang
Hiliduruwa
Seriwau
Sawo
Lasara Sawo
Sisarahili T.
Siabang
Sifandro
Onositoli Sawo
Botolakha
Alooa
Siofa Banua
Laaya
Ladara
Banua Gea

District
Nias Selatan (main
land)

Pulau Tello

Pasar Teluk
Dalam
Bawolowalani

Rapa - rapa melayu

Siofa Ewali

Hilitobara
Bawo zaua
Hili Geho
Hilianaa
Hiliofonaluo
Hilizihono
Hiliamaita Niha
Lagundri
Botohilitano
Sotoo
Hilisataro
Hilinamoniha

Pasar Pulau Tello

Sinauru
Simaluaya
Baruyu Lasara
Loboi
Sidua Ewali
Bawodobara
Sifitu Ewali
Hiliamodola
Bawo'omasio
Bawoamahelato
Silima Ewali

Hiliamaitaluo
Hili Ganowo
Hilindrasoniha
Lolozaria
Lolomoyo
Lolowa'u
Hilinamazihono
Amuri

Ssofa Ewali II

Nias Barat
LAHUSA
OMBOLATA
HILIMBERUA
NA'A
TOGI MBOGI
TETEHOSI
SISOBANDRAO
BALOWONDATE
SENENE'ETO
HALAMONA
HANOFA
LAHAWA
SIROMBU
TUWA-TUWA
HINAKO
BAWOSALO'O
KAFO-KAFO
PULAU BOGI
BAWASAWA
IMANA
SISARAHILI

90

Gunungsitoli
Teluk belukar
Gawu-gawu Bouso
Afia
Olora
Bawadesolo
Sisarahili Gamo
Moawo
hilihao
Sifalaete Ulu
Saewe
Ombolata Ulu
Saombo
Pasar Gunungsitoli
Ilir
Sifalaete Tabaloho
Sihare'o Tabaloho
Miga
Fodo
Madula
Luaha Laraga
Dahana
Simanaere

23
24
25
26
27
28
29

Silimabanua
Fino

Hilisoromi
Bawozihono
Hiliabolata
Siwalubanua
Golambanua II
Sihare'o
Tetezou

Siwalubanua
Humene
Fowa
Bhinaka
Tetehosi Fowa
Idanotae
Tuhegeo I

Consolidated summary

Nias

Nias Utara

Nias Selatan
(including Pulau
Tello)

10

24

44

*Outlying islands off Nias Utara have not been included in the Census.

91

Nias Barat

Gunungsitoli

Total

20

29

127

2. District-wise numbers of people in fishing and post-harvest processing and trade by occupation
No

District
Village

1
2
3
4
5
6
7
8
9
10

Tagaule
Botohaenga
Gazamanu
Sisarahili
Dahana
Bozihona
Biouti
Wea-wea
Somi
Gido sebua

1
2
3
4
5
6
7
8

Afulu
Faekhuna"a
Sihene'asi
Moawo
Pasar Lahewa
Balefadorotuho
Muzoi
Hiligeo Afia
Teluk
Bengkuang
Hiliduruwa
Seriwau

9
10
11

Sub district

# Fishing

# Fresh Fish
trade
(motorbike)

# Fresh Fish
trade
(bicycle)

# Fresh Fish
trade(walk)

# Fresh Fish
trade (retailstationery)

# Fresh fish
trade(export)

# Dried fish
processing

# Smoked fish
processing

Nias
63

60
Bawolato

92

27

11

13

184

17

134

17

34

Idanogawo

Gido

51
41

770
Afulu

Lahewa

1
4

52

3
24
Nias Utara

11
1

31

19

28

13

28

53

20

31

42

46

75

Lahewa Timur

85

Lotu

53

Sawo

5
1

84

1
20

11
3

6
3

2
15

11
40

23

92

12
13
14
15
16
17
18
19
20
21
22
23
24

Sawo
Lasara Sawo
Sisarahili
T.
Siabang
Sifandro
Onositoli Sawo
Botolakha
Alooa
Siofa Banua
Laaya
Ladara
Banua Gea
Silimabanua
Fino

1
2
3
4
5
6
7
8
9
10
11
12

Pasar
Teluk
Dalam
Bawolowalani
Hilitobara
Bawo zaua
Hili Geho
Hilianaa
Hiliofonaluo
Hilizihono
Hiliamaita Niha
Lagundri
Botohilitano
Sotoo

Tuhemberua

57

58

45

12

54

36

10

115

11

82

157

11

36

11

82

100

19

1331

101

2
2

48
Nias Selatan

38
8
Teluk Dalam

Fanayama

11

9
1

21

18
15

37

15

16

31

57

65

26
Maniamolo

14

35

93

21

65

13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39

Hilisataro
Hilinamoniha
Hiliamaitaluo
Hili Ganowo
Hilindrasoniha
Lolozaria
Lolomoyo
Lolowa'u
Hilinamazihono
Amuri
Hilisoromi
Bawozihono
Hiliabolata
Siwalubanua
Golambanua II
Sihare'o
Tetezou
Rapa - rapa
melayu
Siofa Ewali
Pasar Pulau
Tello
Sinauru
Simaluaya
Baruyu Lasara
Loboi
Sidua Ewali
Bawodobara
Sifitu Ewali

Toma

30

50

50
65
20

Amandraya

26
21
31

Lolowa'u

28
43

40

53

Lahusa

35

48

150

10

4
5

27

48
9

27

15

57
Pulau Tello

35

2
5

26
21
25

10

5
44

14
10

10

94

10

40
41
42
43
44

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Hiliamodola
Bawo'omasio
Bawoamahelato
Silima Ewali
Ssofa Ewali II

30
81

100
80
68

2
6

6
6

10

10
24

1744

93

LAHUSA

18

OMBOLATA
HILIMBERUA
NA'A
TOGI MBOGI

TETEHOSI

SISOBANDRAO

10

BALOWONDATE

20

SENENE'ETO

17

27

27

LAHAWA

SIROMBU

31

TUWA-TUWA

17

HINAKO

20

BAWOSALO'O

21

KAFO-KAFO

15

PULAU BOGI

14

BAWASAWA

13

IMANA

14

SISARAHILI

22

108

86

3
8

HALAMONA
HANOFA

39
Nias Barat

46

Sirombu

Mandrehe

2
4

10
299

38

1
95

10

Gunungsitoli
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

Teluk belukar
Gawu-gawu
Bouso
Afia
Olora
Bawadesolo
Sisarahili Gamo
Moawo
hilihao
Sifalaete Ulu
Saewe
Ombolata Ulu
Saombo
Pasar
Gunungsitoli
Ilir
Sifalaete
Tabaloho
Sihare'o
Tabaloho
Miga
Fodo
Madula
Luaha Laraga
Dahana
Simanaere
Siwalubanua
Humene

Gunungsitoli
utara

50

22

113

20

12

121

16

62

40

59

20
58

10

20

80

14

62
Gunung sitoli

34

17
107

18

33

10

14

33

29
Gunungsitoli
selatan

12

1
1

21

35
Gunungsitoli
idanoi

16

34

89

10

96

25
26
27
28
29

Fowa
Bhinaka
Tetehosi Fowa
Idanotae
Tuhegeo I

28

16

76

20

1305

14
1

100

84

45

81

Consolidated summary for Nias

# Fishing

# Fresh Fish
trade (motorbike)

# Fresh Fish
trade (bicycle)

# Fresh Fish
trade (walk)

# Fresh Fish
trade (retailstationary)

# Fresh fish trade

(export)

Dried fish
processing

5449

384

199

74

231

31

135

Smoked
processing

fish

Total

117

6620

3. District-wise numbers of active fishworkers by gender

Nias
Nias Utara
Nias
Selatan
Nias Barat
Gunung
Sitoli

Fresh Fish trade

(motorbike)

Fisherman

District

Fresh Fish trade

(bicycle)

Fresh Fish trade

(walk)

Fresh Fish trade

(retail-stationery)

Fresh fish trade

(exports)

Dried fish
process

Smoked fish
process

770

765

52

47

24

24

31

19

12

19

19

28

17

11

28

23

1331

1330

101

91

10

48

48

11

11

21

10

11

65

32

33

93

93

39

39

12

12

105

105

86

53

33

38

38

10

100

100

84

49

35

45

45

81

79

63

228

214

14

31

31

135

80

55

117

49

68

1744
299
1305

1744
299
1305

Total
5449
5443
6
384
369
15
199
164
35
64
Summary:
Total number of men involved in fishing and post-harvest in Nias
Total number of women involved in fishing and post-harvest in
Nias
Total

6424 (97%)
196 (3%)
6620
97

4. District-wise numbers of fishing boats by variety

District

No

# of fishing boat
Sub district

Village

Non
motorized
boat

Motorized boat
0.5 - 1
GT

1-3
GT

# of fishing boat with ice box on board

Motorized fiber boat

> 3 GT

0.5 - 1
GT

1-3
GT

>3
GT

Motorized boat

Non
motorized
boat

0.5 - 1
GT

1-3
GT

24

Motorized fiber boat

>3
GT

Nias
1
2
3
4
5
6
7
8
9
10

Tagaule

Botohaenga
Gazamanu

Bawolato

Sisarahili
Dahana

Bozihona

Idanogawo

Biouti

Wea-wea
Somi

Gido

Gido sebua

29

30

40

10

21

26

24

10

93

89

85

21

64

44

36

442

211

2
5

31

Nias Utara
1

Afulu

18

35

Faekhuna"a

16

Sihene'asi

22

Moawo

Pasar Lahewa

42

Balefadorotuho

Muzoi

Lahewa
Timur

11

51

Hiligeo Afia

Lotu

43

10

Teluk Bengkuang

Sawo

8
9

Afulu

Lahewa

98

0.5 - 1
GT

1-3
GT

> 3 GT

10

Hiliduruwa

18

22

11

Seriwau

17

12

Sawo

43

10

13

30

30

14

Lasara Sawo
Sisarahili
Siabang

27

18

15

Sifandro

19

21

16

Onositoli Sawo

14

25

17

Botolakha

30

12

17

11

17

18

Alooa

21

30

26

19

Siofa Banua

50

46

20

Laaya

20

21

Ladara

11

10

22

Banua Gea

23

17

23

Silimabanua

82

19

24

Fino

15

442

512

T.

Tuhemberua

5
1

30

25

130

26

Nias Selatan
1

Pasar Teluk Dalam

Bawolowalani

Hilitobara

Bawo zaua

Hili Geho

18

Hilianaa

Hiliofonaluo

Hilizihono

Hiliamaita Niha

10

Lagundri

11

Botohilitano

2
Teluk
Dalam

10

13
Fanayama

15

28

28

13

13

99

12

Sotoo

13

Hilisataro

14

Hilinamoniha

15

Hiliamaitaluo

16

Hili Ganowo

17

Hilindrasoniha

18

Lolozaria

19

Lolomoyo

20

Lolowa'u

Maniamolo

1
Toma

Lolowa'u

15

24

24

10

10

Amuri

23

Hilisoromi

20

24

Bawozihono

44

25

Hiliabolata

28

10

Hilinamazihono

27

25

25

Golambanua II

35

35

Sihare'o

12

12

29

Tetezou

13

13

30

Rapa - rapa melayu

31

Siofa Ewali

32

Pasar Pulau Tello

14

33

Sinauru

15

34

Simaluaya

35

Baruyu Lasara

36

Loboi

37

Sidua Ewali

38

Bawodobara

39

Sifitu Ewali

40

Hiliamodola

20

9
Lahusa

Pulau Tello

11

22

Siwalubanua

15

21

26

3
Amandraya

10

18

1
1

1
1
2

10

10

100

41

Bawo'omasio

32

42

Bawoamahelato

25

10

43

Silima Ewali

32

11

44

Ssofa Ewali II

26

274

389

32
10
6

4
21

Nias Barat
1

LAHUSA

OMBOLATA

HILIMBERUA
NA'A

TOGI MBOGI

TETEHOSI

SISOBANDRAO

BALOWONDATE

SENENE'ETO

HALAMONA

10

HANOFA

11

LAHAWA

12

SIROMBU

13

TUWA-TUWA

Sirombu

1
2

14

HINAKO

15

BAWOSALO'O

16

KAFO-KAFO

17

PULAU BOGI

18

BAWASAWA

19

IMANA

20

SISARAHILI

6
4

3
Mandrehe
18

45

35
Gunungsitoli

101

285

Teluk belukar

Gawu-gawu Bouso

Afia

Olora

Bawadesolo

Sisarahili Gamo

Moawo

35

24

hilihao

15

Sifalaete Ulu

51

10

Saewe

11

Ombolata Ulu

12

Gunungsitol
i Utara

14

12

12

11

20

61

121

62

6
7

11

15

15

38

15

Saombo

22

11

13

Pasar Gunungsitoli

11

14

Ilir

65

15

Sifalaete Tabaloho

28

16

Sihare'o Tabaloho

17

Miga

18

Fodo

19

Madula

20

Luaha Laraga

13

21

Dahana

30

22

Simanaere

23

Siwalubanua

24

24

Humene

60

25

25

Fowa

15

10

26

Bhinaka

27

Tetehosi Fowa

51

25

28

Idanotae

15

29

Tuhegeo I

Kota
gunungsitoli

Gunungsito
li Selatan

6
2

6
2

14

12

Gunungsito
li idanoi

1
1

16

102

590

401

37

38

37

45

Total number of fishing boats by variety in Nias:

Non Motorized

Motorized 0.5 - 1
GT

Motorized 1 - 3 GT

Motorized > 3 GT

Motorized fiber boat 0.5

1 GT

Motorized fiber boat > 3 GT

1766

1558

74

73

42

Total number of fishing boats: 3519

Total number of fishing boats with icebox onboard:

Non Motorized

Motorized 0.5 - 1
GT

Motorized 1 - 3 GT

Motorized > 3 GT

Motorized fiber boat 0.5

1 GT

Motorized fiber boat > 3 GT

37

420

59

80

Total number of fishing boat with ice box on board: 608

103

5. District-wise details of fishing gears used in Nias

No

District

Sub district

Village

1
2
3
4
5
6
7
8
9
10

Tagaule

Botohaenga
Gazamanu
Bozihona
Biouti

Wea-wea
Somi

Bawolato

Idanogawo

Gido

Gido sebua

Afulu

Faekhuna"a

Sihene'asi

Moawo

Pasar Lahewa

Balefadorotuho

Muzoi

8
9

Hiligeo Afia
Teluk
Bengkuang

10

Hiliduruwa

Hook

Other
s

Nets

Hook

22

17

30

40

10

10

26

18

Nias

Sisarahili
Dahana

Non motorized boat

Beachseine
Diving
s

Nets

26

26

24

10

48

14

90

93

242

122

115

31

36

62

12

41

13

36

14

397

405

130

351

24

Motorized boat
Beachseine
Diving
s

Others

Nias Utara
11

Afulu

Lahewa

13

15

2
1

17

4
1

Lahewa
Timur
Lotu

33

41

36

31

34

15

11

Sawo
3

14

14

104

21

11

Seriwau

12

Sawo

4
6

23

29

13

Lasara Sawo

13

16

21

22

14

Sisarahili
Siabang

18

14

17

15

Sifandro

16

21

20

16

Onositoli Sawo

25

22

17

Botolakha

15

29

18

Alooa

19

Siofa Banua

20

Laaya

21

Ladara

22

Banua Gea

28

23

Silimabanua

29

64

24

Fino

T.

1
1

17

28

21
38
Tuhemberua

1
1

30

25

15

43

20

10

10

15

14

16

18
168

338

14

239

479

Nias Selatan
1

Pasar
Dalam

Teluk

Bawolowalani

Hilitobara

Bawo zaua

10

10

Hili Geho

18

18

Hilianaa

Hiliofonaluo

Hilizihono

13

13

15

15

28

28

13

13

Hiliamaita Niha

10

Lagundri

11

Botohilitano

Teluk
Dalam

Fanayama

105

1
14

Maniamolo

12

Sotoo

13

Hilisataro

14

Hilinamoniha

15

Hiliamaitaluo

16

Hili Ganowo

17

Hilindrasoniha

18

Lolozaria

19

Lolomoyo

20

Lolowa'u

8
1

Toma

Lolowa'u

9
15

24

24

3
11

10

10

21

Hilinamazihono

10

10

22

Amuri

23

Hilisoromi

20

20

24

Bawozihono

25

Hiliabolata

26

Siwalubanua

27

Golambanua II

35

35

28

Sihare'o

12

12

29

Tetezou

13

13

30

Rapa melayu

31

Lahusa

32
33

Sinauru

34

Simaluaya

35

Baruyu Lasara

36

Loboi

37

Sidua Ewali

38

Bawodobara

14
Pulau Tello

25

rapa

Siofa Ewali
Pasar
Pulau
Tello

1
3

Amandraya

7
15

15

15

2
10

18

106

39

Sifitu Ewali

40

Hiliamodola

41

Bawo'omasio

32

42

Bawoamahelato

25

10

43

Silima Ewali

44

Ssofa Ewali II

10

10

26
152

223

34

332

226

Nias Barat
1

LAHUSA

OMBOLATA
HILIMBERUA
NA'A
TOGI MBOGI

3
4

TETEHOSI
SISOBANDRA
O
BALOWONDA
TE
SENENE'ETO

5
6
7

22

HALAMONA

10

HANOFA

11

LAHAWA

12

SIROMBU

13

TUWA-TUWA

14

HINAKO

15

BAWOSALO'O

16

KAFO-KAFO

17

PULAU BOGI

18

BAWASAWA

10

19

IMANA

Sirombu

1
1

11
12
10
4

107

20

SISARAHILI

Mandrehe
1

18

108

Gunungsitoli
1
2

Teluk belukar
Gawu-gawu
Bouso

Afia

Olora

Bawadesolo

62

Sisarahili Gamo

40

Moawo

35

hilihao

15

Gunungsitoli
Utara

14
20

20

66

112

Sifalaete Ulu

10

Saewe

11

Ombolata Ulu

12

Saombo

10

13

Pasar
Gunungsitoli

11

14

Ilir

16

Sifalaete
Tabaloho
Sihare'o
Tabaloho

17

Miga

18

Fodo

19

Madula

20

Luaha Laraga

21

Dahana

22

Simanaere

23

Siwalubanua

15

26

51
38

53

22

33

10

24

24

11

11

10

Kota
gunungsitoli

67
28

28

Gunungsitoli
Selatan

14

14

Gunungsitoli
idanoi

15

15

24

108

24

Humene

25

Fowa

26

Bhinaka

27

Tetehosi Fowa

51

28

Idanotae

15

29

Tuhegeo I

15

60

27

29

15

13

13

16

16

51

25

25

15

190

711

199

284

Consolidated numbers of fishing gears in Nias

Total number of fishing gears

Nets (gillnet & trammel net)
Hooks (hook & line)
Beach seine
Divers

Total

Non motorized boat

Motorized boat

884

942

1199

1652

18

16

2106

2617

Other nets used in case of Pasar Pulau Tello and Sinauru villages are the lift nets

109

Total

1826
2851
25
21
4723

6. District-wise details of fisheries supporting infrastructure in Nias

District
No

1
2
3
4
5
6
7
8
9
10

Village
Tagaule
Botohaenga
Gazamanu
Sisarahili
Dahana
Bozihona
Biouti
Wea-wea
Somi
Gido sebua

1
2
3
4
5
6

Afulu
Faekhuna"a
Sihene'asi
Moawo
Pasar Lahewa
Balefadorotuho

7
8

Muzoi
Hiligeo Afia
Teluk
Bengkuang

Sub
district

Fish
landing
site

Fish
market

Fisheries supporting facilitites

Boat
Home
Fishing
Ice
Jetty Port building freezers Workshop
gear
plants
yards
(ice)
retailers
Nias
1

Bawolato

8
3

Idanogawo

1
2

Gido

Nias Utara

Afulu
11
Lahewa
1

10

Lahewa
Timur

Lotu
Sawo

110

10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

1
2
3
4
5
6
7
8
9
10

Hiliduruwa
Seriwau
Sawo
Lasara Sawo
Sisarahili
T.
Siabang
Sifandro
Onositoli Sawo
Botolakha
Alooa
Siofa Banua
Laaya
Ladara
Banua Gea
Silimabanua
Fino

Pasar
Teluk
Dalam
Bawolowalani
Hilitobara
Bawo zaua
Hili Geho
Hilianaa
Hiliofonaluo
Hilizihono
Hiliamaita Niha
Lagundri

2
1
1

7
35
6
4
21

40

14
20
Tuhemberua
1

1
25

10
2

Nias Selatan

210

13

9
3

Teluk Dalam

1
1

Fanayama

1
1
1

1
1
1
1
111

5
1
9

11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

Botohilitano
Sotoo
Hilisataro
Hilinamoniha
Hiliamaitaluo
Hili Ganowo
Hilindrasoniha
Lolozaria
Lolomoyo
Lolowa'u
Hilinamazihono
Amuri
Hilisoromi
Bawozihono
Hiliabolata
Siwalubanua
Golambanua II
Sihare'o
Tetezou
Rapa - rapa
melayu
Siofa Ewali
Pasar
Pulau
Tello
Sinauru
Simaluaya
Baruyu Lasara
Loboi
Sidua Ewali

Maniamolo

3
9

Toma

Amandraya

1
Lolowa'u

6
2
5

Lahusa
2

3
1

Pulau Tello

25

112

38
39
40
41
42
43
44

Bawodobara
Sifitu Ewali
Hiliamodola
Bawo'omasio
Bawoamahelato
Silima Ewali
Ssofa Ewali II

2
2
5
1

6
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

14

20

Nias Barat

LAHUSA

127

30

10

OMBOLATA
HILIMBERUA
NA'A
TOGI MBOGI
TETEHOSI
SISOBANDRAO
BALOWONDATE

SENENE'ETO
HALAMONA
HANOFA

3
Sirombu

LAHAWA
SIROMBU

TUWA-TUWA

HINAKO

BAWOSALO'O

KAFO-KAFO

PULAU BOGI
BAWASAWA
IMANA

113

20

SISARAHILI

Mandrehe

1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

Teluk belukar
Gawu-gawu
Bouso
Afia
Olora
Bawadesolo
Sisarahili Gamo
Moawo
hilihao
Sifalaete Ulu
Saewe
Ombolata Ulu
Saombo
Pasar
Gunungsitoli
Ilir
Sifalaete
Tabaloho
Sihare'o
Tabaloho
Miga
Fodo
Madula
Luaha Laraga
Dahana

Gunungsitoli

11

14

Gunungsitoli
Utara

15

18

6
13
7
4
9
70

Kota
gunungsitoli

6
7
2

Gunungsitoli
Selatan

20

30

3
3

Gunungsitoli
idanoi

3
3

114

32

1
5

22
23
24
25
26
27
28
29

Simanaere
Siwalubanua
Humene
Fowa
Bhinaka
Tetehosi Fowa
Idanotae
Tuhegeo I

15
2

20

6
4

280

1
1

25

Summary of fisheries supporting infrastructure in Nias

Total number of fisheries supporting infrastructure in Nias
1
2
3
4
5
6
7
8
9

Fish landing sites

fish markets
Ice plants
Jetties
Ports

12
20
3
31
8

Boat building yards

Home freezers (for ice making)
Workshops
fishing gear retailers

31
628
66
67

Remarks

Loated in: Gunungsitoli (1), Teluk dalam (1), and Lahewa (1);
the last two are no longer operating.

Besides, there are 54 professional boat builders in Nias

without boat building infrastructure; they are itinerant boat
builders involved in in-situ construction of boats on demand.

115

47

7. District-wise details of basic infrastructure facilities

District
No

Village

1
2
3
4
5
6
7
8
9
10

Tagaule
Botohaenga
Gazamanu
Sisarahili
Dahana
Bozihona
Biouti
Wea-wea
Somi
Gido sebua

1
2
3
4
5
6
7
8
9
10

Afulu
Faekhuna"a
Sihene'asi
Moawo
Pasar Lahewa
Balefadorotuho
Muzoi
Hiligeo Afia
Teluk Bengkuang
Hiliduruwa

Sub district

Bawolato

Idanogawo
Gido

Afulu

Lahewa
Lahewa Timur
Lotu
Sawo

Drinking
Medical
School
water
services
facilities
Nias
1
1
na
na
1
na
1
1
na
3
8
na
na
4
na
1
3
na
na
4
na
1
3
available
na
3
available
na
3
available
7
31
Nias Utara
1
4
available
1
2
available
1
2
available
na
na
available
1
6
available
1
2
available
1
na
available
1
2
available
na
na
na
1
3
available
116

Basic infrastructure
Road
access

Comunication Electricity
services
supplies

Bank

available
available
available
available
available
available
available
available
available
available

1
na
1
2
1
1
na
1
na
1
8

na
na
available
na
na
na
na
available
na
available

na
na
na
na
na
na
na
na
na
na

available
available
available
available
available
available
na
available
available
available

1
na
1
na
na
na
1
1
1
1

na
na
available
available
available
available
available
available
available
na

na
na
na
na
1
na
na
na
na
na

11
12
13
14
15
16
17
18
19
20
21
22
23
24

Seriwau
Sawo
Lasara Sawo
Sisarahili
T.
Siabang
Sifandro
Onositoli Sawo
Botolakha
Alooa
Siofa Banua
Laaya
Ladara
Banua Gea
Silimabanua
Fino

1
2
3
4
5
6
7
8
9
10
11
12

Pasar Teluk Dalam

Bawolowalani
Hilitobara
Bawo zaua
Hili Geho
Hilianaa
Hiliofonaluo
Hilizihono
Hiliamaita Niha
Lagundri
Botohilitano
Sotoo

na
1
na

Tuhemberua

Teluk Dalam

Fanayama

Maniamolo

na
1
na
1
na
1
na
na
na
1
na
13
1
na
na
na
1
1
na
1
1
1
1
na

na
3
2

na
na
na

1
available
2
available
2
available
4
available
1
available
1
na
na
available
na
available
5
na
5
na
na
na
47
Nias Selatan
na
available
1
available
1
available
1
available
1
available
2
available
na
na
1
available
1
available
3
na
na
na
1
na
117

available
available
available

1
1
1

na
available
available

na
na
na

available
available
available
available
available
available
available
available
available
available
available

1
1
1
na
1
1
1
1
1
1
1
19

available
available
available
available
available
available
available
available
available
available
available

na
na
na
na
na
na
na
na
na
na
na
1

available
available
available
available
available
available
available
available
available
available
available
available

na
na
na
1
na
na
na
1
na
na
na
na

available
available
available
available
available
available
available
available
available
available
available
available

3
1
na
na
na
na
na
na
1
na
na
na

13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

Hilisataro
Hilinamoniha
Hiliamaitaluo
Hili Ganowo
Hilindrasoniha
Lolozaria
Lolomoyo
Lolowa'u
Hilinamazihono
Amuri
Hilisoromi
Bawozihono
Hiliabolata
Siwalubanua
Golambanua II
Sihare'o
Tetezou
Rapa
rapa
melayu
Siofa Ewali
Pasar Pulau Tello
Sinauru
Simaluaya
Baruyu Lasara
Loboi
Sidua Ewali
Bawodobara
Sifitu Ewali
Hiliamodola

Toma

Amandraya
Lolowa'u

Lahusa

Pulau Tello

1
1
na
na
1
na
na
1
1
na
na
1
na
1
1
1
na

5
na
1
2
1
na
1
5
na
na
na
1
1
1
3
na
2

available
na
na
na
na
na
na
available
na
available
na
available
na
available
na
na
available

available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available

1
na
1
na
na
na
na
na
1
na
1
na
na
na
1
na
1

available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available

na
na
na
na
na
1
na
1
na
na
na
na
na
na
na
na
na

na
na
na
na
na
1
1
na
1
na
na

na
na
6
1
na
1
1
na
1
na
na

available
na
available
available
available
na
na
na
na
na
na

available
available
available
available
available
available
available
available
available
available
available

na
na
na
na
na
na
na
na
na
na
na

na
na
available
available
available
available
available
na
available
na
na

na
na
1
na
na
na
na
na
na
na
na

118

41
42
43
44

Bawo'omasio
Bawoamahelato
Silima Ewali
Ssofa Ewali II

na
na
na
na
19

1
2

LAHUSA
OMBOLATA
HILIMBERUA
NA'A
TOGI MBOGI
TETEHOSI
SISOBANDRAO
BALOWONDATE
SENENE'ETO
HALAMONA
HANOFA
LAHAWA
SIROMBU
TUWA-TUWA
HINAKO
BAWOSALO'O
KAFO-KAFO
PULAU BOGI
BAWASAWA
IMANA
SISARAHILI

1
1

3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Sirombu

Mandrehe

na
na
na
na
1
na
na
na
46
Nias barat
1
available
1
na

na
na
na
1
na
na
na
1
na
1
na
1
na
na
na
na
na
1

1
na
na
1
na
1
na
1
1
1
1
1
na
na
na
na
na
1

11

available
available
na
na
available
available
available
available
available
available
available
available
available
available
available
available
available
na

119

available
available
available
available

na
na
na
na
8

available
available
available
available

na
na
na
na
8

available
available

na
na

available
available

na
na

available
available
na
na
na
na
na
na
na
available
na
na
na
na
na
na
na
available

na
na
na
na
na
na
na
na
na
na
na
na
na
na
na
na
na
na

available
available
na
na
na
na
na
na
na
available
na
na
na
na
na
na
na
available

na
na
na
na
na
na
na
na
na
1
na
na
na
na
na
na
na
1

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

Teluk belukar
Gawu-gawu Bouso
Afia
Olora
Bawadesolo
Sisarahili Gamo
Moawo
hilihao
Sifalaete Ulu
Saewe
Ombolata Ulu
Saombo
Pasar Gunungsitoli
Ilir
Sifalaete Tabaloho
Sihare'o Tabaloho
Miga
Fodo
Madula
Luaha Laraga
Dahana
Simanaere
Siwalubanua
Humene
Fowa

Gunungsitoli
Utara

Kota
gunungsitoli

Gunungsitoli
Selatan

Gunungsitoli
idanoi

na
na
na
1
1
1
na
na
na
na
na
na
1
na
na
3
na
na
na
na
1
1
na
1
na

Gunungsitoli
1
available
3
na
1
na
3
na
3
na
2
available
3
na
1
na
na
available
2
na
na
na
1
available
3
available
na
na
na
na
na
na
1
available
na
na
na
na
na
na
1
na
2
available
4
available
2
available
2
available
120

available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available

available
available
na
available
na
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available

available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available
available

na
na
na
na
na
na
na
na
na
na
na
na
4
na
na
na
na
na
na
na
na
na
na
na
na

26
27
28
29

Bhinaka
Tetehosi Fowa
Idanotae
Tuhegeo I

na
1
1
1
13

na
1
1
1
19

na
available
available
available

available
available
available
available

available
available
available
available

available
available
available
available

na
na
1
na
5

Summary of basic infrastructure facilities

Medical services

School

59

Banks

154

Communication service

16

56

Number of coastal villages with access to basic infrastructure facilities

Villages with
access
Villages
without access
Proportion of
villages
without access

Medical
services

School

Drinking water
facilities

Road access

Communication
service

Electricity
supplies

Banks

55

84

66

122

52

97

10

72

43

61

75

30

117

57

34

48

59

24

92

121

8. Source of capital in fisheries activities

No

District
Village

1
2
3
4
5
6
7
8
9
10

Tagaule
Botohaenga
Gazamanu
Sisarahili
Dahana
Bozihona
Biouti
Wea-wea
Somi
Gido sebua

1
2
3
4
5
6
7
8

Afulu
Faekhuna"a
Sihene'asi
Moawo
Pasar Lahewa
Balefadorotuho
Muzoi
Hiligeo Afia
Teluk
Bengkuang
Hiliduruwa

9
10

Sub district

Own
capital

Source of capital for fisheries activities

Money
Traders
Bank Cooperative Pawnshop
lenders
Nias
8

46

10
Bawolato

82

50
55

30

34

Idanogawo

80

24
20

11

134

50

Gido

75
41

381
Afulu

Group
savings

74
Nias Utara

32

53
18

Lahewa

Lahewa Timur
Lotu

Sawo

122

15

280

11
12
13
14
15
16
17
18
19
20
21
22
23
24

Seriwau
Sawo
Lasara Sawo
Sisarahili
T.
Siabang
Sifandro
Onositoli Sawo
Botolakha
Alooa
Siofa Banua
Laaya
Ladara
Banua Gea
Silimabanua
Fino

1
2
3
4
5
6
7
8
9
10
11

Pasar
Teluk
Dalam
Bawolowalani
Hilitobara
Bawo zaua
Hili Geho
Hilianaa
Hiliofonaluo
Hilizihono
Hiliamaita Niha
Lagundri
Botohilitano

23
43
70

13

45

36

70

20

13
3
Nias Selatan

70

20

56
104
Tuhemberua
11

100
1

560

47
30
Teluk Dalam

18
17
41
20
18
34

Fanayama

13

50

65
26

123

12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38

Sotoo
Hilisataro
Hilinamoniha
Hiliamaitaluo
Hili Ganowo
Hilindrasoniha
Lolozaria
Lolomoyo
Lolowa'u
Hilinamazihono
Amuri
Hilisoromi
Bawozihono
Hiliabolata
Siwalubanua
Golambanua I
Sihare'o
Tetezou
Rapa - rapa
melayu
Siofa Ewali
Bawo
Amahelato
Bawoomasio
Hiliamodola
Sifitu Ewali
Bawodobara
Sidua Ewali
Loboi

Maniamolo

35
37
63

Toma

50
65
23

Amandraya

26
21
6

Lolowa'u

30

28
29

20

46

20

76
35
Lahusa

35

48
141

33
48
12
27
66
Pulau Tello

48
38
6

25

25
5
44

124

39
40
41
42
43
44

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

Baruyu Lasara
Simaluaya
Pasar
Pulau
Tello
Sinauru
Silima Ewali
Siofa ewali II

21
10
81
50
40

50
4

120

68

1680

LAHUSA

18

OMBOLATA
HILIMBERUA
NA'A
TOGI MBOGI

39
Nias Barat

149

3
8

TETEHOSI

SISOBANDRAO

10

BALOWONDATE

20

SENENE'ETO

17

HALAMONA

27

HANOFA

20

Sirombu

27

LAHAWA

SIROMBU

31

TUWA-TUWA

17

HINAKO

20

BAWOSALO'O

21

KAFO-KAFO

15

PULAU BOGI

14

BAWASAWA

13

IMANA

14

125

195

20

SISARAHILI

10
Mandrehe

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

Teluk belukar
Gawu-gawu
Bouso
Afia
Olora
Bawadesolo
Sisarahili Gamo
Moawo
hilihao
Sifalaete Ulu
Saewe
Ombolata Ulu
Saombo
Pasar
Gunungsitoli
Ilir
Sifalaete
Tabaloho
Sihare'o
Tabaloho
Miga
Fodo
Madula
Luaha Laraga
Dahana
Simanaere

299

Gunungsitoli

50
36

Gunungsitoli
Utara

170

121
85

69
20
102
125
69
Kota gunungsitoli

Gunungsitoli
Selatan

33

Gunungsitoli idanoi

35
14

126

23
24
25
26
27
28
29

Siwalubanua
Humene
Fowa
Bhinaka
Tetehosi Fowa
Idanotae
Tuhegeo I

39
105
7

90
28
8

1199

Source of capital for fisheries activities (as percentage of the total respondents in brackets)
Own capital

From traders

Money lenders

Bank

Cooperative

Group savings

4,119 (82%)

127 (2.5%)

4 (0.08%)

1 (0.02%)

258 (5%)

496 (10%)

127

Total no of
respondents

5005