The Impact of Implementation of the Regulation of Minister of Marine and Fisheries Number 56 and 57 of 2014 to the Fishing Industry in Bitung, North Sulawesi, and Indonesia

The fishing industry is the dominant driver of the Economy in Bitung. The major contribution of fishing industry to Bitung City made this city known by the term "Skipjack". With the enactment of the Regulation of the Minister of Marine and Fisheries No 56 of 2014 on Temporary Cessation (Moratorium) Licensing of Fish in Regional Fisheries Management of the Republic of Indonesia and the Regulation of the Minister of Marine and Fisheries No. 57 of 2014 regarding the Second Amendment to the Regulation of the Minister of Marine and Fisheries No. 30 / MEN / 2012 on Business fisheries Regional fisheries Management in the Republic of Indonesia., brought a huge impacts for the fisheries industry in Bitung. The implementation of the new fishing regulation did not only affect the fishing industry in Bitung, but also throughout the economy on the city of Bitung and North Sulawesi. This research analyzed the impact of the application of the regulation. In this study, the researchers examined the Fishing Industry Bitung city before and after implementation of the fishing regulation. The study also included the analysis of the fish/raw material supply chain which most severely affected by the new fishing regulation and also discuss the multiplier effects from the application of the fishing regulation.


Introduction
One of the famous industries in North Sulawesi is Fisheries industry. The implementation of Regulation of the Minister of Marine and Fisheries no.56 and no. 57 year 2014, impacted negatively on the industry fisheries and economic in North Sulawesi. . Geographically, the area of Bitung City located at the foot of the Dua Saudara mountain and an island called Lembeh. Bitung is also has a Many residents of Bitung City that comes from the tribe of Sangir, so that the culture in Bitung is inseparable from the existing culture in the region of North Nusa. Bitung City is one of the cities in North Sulawesi province and located in the northeast of Minahasa Land that has a rapid development because of availability of harbor and people lives from the fishery industry. Thus, the fishery industry is the dominant driver of the economy in Bitung City, it brings the City of Bitung known as "Kota Cakalang".
The  Below is the explanation: The Regional Economic Research of North Sulawesi III quarter 2015 shows the performance of commodity exports of North Sulawesi recorded negative growth of 17.94% (yoy) with export value of 242.92 million USD. Up to the third quarter of 2015, based on the share of North Sulawesi's main export commodities, exported commodities are still derived from processed fats and edible oils with a composition of 64%, followed by jewelry / gem products (15%), while fish and processed fish noted only has a share of 4% and 5% as the limited increase in export volume. Meanwhile, by country of destination, North Sulawesi's exports until the second quarter of 2015 were dominated by the Netherlands (25%), United States (21%) and Singapore (16%). In addition, fish and processed fish market share account only 4% and 5% of the total exports. This decrease it was driven by the moratorium fishery policy that causes the lack of raw materials. Other impacts of the application of the Regulation of the Minister of Marine and Fisheries are the declining supply of raw materials for the fishing industry of Bitung City, the high unemployment and the negative social impacts.
The existence of Bitung port in North Sulawesi is one of supporting facilities in import export activity for Eastern Indonesia region. With natural and marine resources owned by North Sulawesi, bringing North Sulawesi on the order of 21 for the province based on total exports in 2011. Having a wealth of marine and abundant natural wealth, does not necessarily make North Sulawesi success in its export performance. The exporter in North Sulawesi is fail in providing the fish with the quality standard of products that meet the international quality standards. Recently, the European market refused to export frozen fish belonging to PT. Sulawesi Fishing Ventura, which is the one of biggest fish canning company in Bitung. The imported refused the products because it is considered not to meet the quality standard test after histamine chemicals are found.
In the framework of global trade, Bitung port in North Sulawesi is one of the strategic tools in supporting global trade. The Bitung port should give the export companies in North Sulawesi competitive advantage to export their fish. However, based on the regional data of Indonesian banks for North Sulawesi, only as a small production of North Sulawesi's export commodities are absorbed by the global markets. It fact is a driving force in doing this research. This research focuses on all aspects that were affected by the application of Regulation of the Minister of Marine and Fisheries of KP No 56 and 57 year 2014. Export Companies in order to increase the company's fish export performance.

Literature review
Supply Chain Management (SCM) is an 'umbrella process' in which products are created and delivered to consumers from a structural angle. SCM refers to an intricate network of relationships that maintain an organization with its business associates to obtain a source of production in delivering to consumers. (Kalakota, 2000, h197) The goal to be achieved from each supply chain is to maximize the overall value generated (Chopra, 2001, h5). An integrated supply chain will increase the overall value generated by the supply chain. The definition of supply is the amount of material stored and maintained according to certain rules in place of supplies in order to always be in a ready-made state and administered in the company's books. In addition, SCM also can be defined as a business process and repetitive information that provides products or services from suppliers through the process of making and distributing to consumers.
According to Indrajit and Djokopranoto, SCM is a place of organizational system to distribute goods and services to its customers. This chain is a network of various interconnected organizations that have the same goal, which is as good as possible to carry out the procurement or suppliers of goods. Management Understanding Management is a technique or art to direct and drive others in order to achieve goals. The main management functions are: Planning, planning what they will do, then, organize to achieve the plan. Next, they organize the staff (Staff) of their organization with the necessary resources. With the resources available, they directly implement the plan. Finally they control (Control) resources, keeping them operating optimally. Understanding Supply Chain Management According to Schroeder Supply Chain Management (SCM) is the design, design, and control of material flow and information along the supply chain with the aim of customer satisfaction now and in the future.
According to Simchi-Levi et al, SCM is an approach in integrating various organizations that organize procurement or distribution of goods, i.e. suppliers, manufacturers, warehouses and stores so that these goods can be produced and distributed in the right quantities, exact location, right time and costs are minimal. From the above two definitions can be deduced that SCM is a chain of procurement of goods to customers in order to ensure the availability of materials and minimize costs. Thus, SCM Objectives based on the above definitions are: Supply chain management involves consideration of the location of each facility that has an impact on activities and costs in order to produce the desired product from customers from suppliers and factories to be stored in warehouses and distributed to sales centers.
Achieving the efficiency of the activity and cost of the entire system, the total cost of the system from transportation to distribution of raw material inventory, work processes and finished goods. The fishing industry is the industry or activity of catching, cultivating, processing, preserving, storing, distributing and marketing fish products. This term is defined by FAO, including those committed by recreational anglers, traditional fishermen, and commercial fishing. Both directly and indirectly, the fishing industry (from catching / cultivating to marketing) has been feeding some 500 million people in developing countries world.
Taking into account how the prospects of the fishing industry in the next 5 years at least there are some things to note, such as availability of capital, competition with other countries and global economic conditions that will affect market opportunities. In relation to its own policy, the country's political conditions are very dynamic and also the possibility of conflict of interest between related parties (whether between ministries, institutions, and individuals) needs to be taken into account. The existence of global warming phenomenon or increase in earth temperature also needs to be considered in estimating the prospects of fishery business that will come.

Availability of capital
The capital to be discussed here is related to funding issues. Capital can be obtained from anywhere, for example from savings (individuals), governments, investors (local and foreign), and loans (banks, cooperatives and others). The Bank itself, which is a part of substantial capital holders and potentially provide credit to fishery business actors need to increase the amount of funds allocated to the fisheries and marine sector. In addition, the concept of "Minneapolitan" fishery development proclaimed by the Minister of Fisheries and Marine Affairs, Fadel Muhammad can provide sufficient capital to support the development of a brighter future 5 years fishery industry.

The condition of the global economy
Along with the increasing world population, demand for marine and fishery products in the world market is expected to continue to increase. This is due to several factors, namely: Increased human awareness of fishery products as a healthy food for consumption because it contains high nutritional value, low cholesterol and contains unsaturated fatty acids omega 3 which can increase intelligence.

Competition with other countries
The Competition has two sides' impacts to economy. It can be healthy for economy or unhealthy for economy. Competition is healthy if the people compete based on price and quality. On the other hand if the people cheating catching fish illegally then it is not healthy for economy. The perpetrators of criminal acts of fish theft must be fully enforced, not only operators who work in the field, but also the owners of the company.

State political conditions
In the management of fishery resources of Indonesia according to Law no. 32 of 2004 on Regional Government and PP No.25 of 2000 still means that the authority is only in the hands of local government. Whereas autonomous management of marine and fishery resources should be seen as a form of joint management globally and taking into account equality, democratization, and participation of all parties.
On the other hand, in reality in the next 5 years there will be a change of government (SBY Government Period only until 2014). As the president switched it would most likely create a subordinate structure of governance in this case the change of the minister of fisheries and maritime (although it does not rule out that the current minister would take office again). The success of these policy makers will in turn affect the change of policies in relation to the existing fisheries sector due to the unstable political condition of Indonesia

Government policy
With the government regulation that is prohibition of export of raw materials of fresh fishery products that have not been processed at all. So the fishery industry, especially the field of handling and processing will grow. But it is constrained raw materials more limited due to several things such as climate change and the environment for capture fisheries, while for aquaculture there are problems of land and disease in fish.

Conflict of interest
In addition to the great potential of marine and fishery resources, there are also institutional potentials, such as the role of the Tuna Commission, the Shrimp Commission, the Fisheries Society of the Archipelago (MPN), the Association of Indonesian Fisheries Entrepreneurs, the Indonesian Fishermen Association (HNSI) Astuin), NGOs for Marine and Fisheries, etc., in the future need to be synergized. Other potentials include the potential of existing infrastructure, such as fish quarantine unit services, development centers, research centers, cultivation centers, fisheries schools, etc. In addition, there are also potential areas that have developed the Strategic Plan (Renstrada) in the field of marine and fisheries.
The government and the House of Representatives together need to stop the commercialization efforts of coastal waters, while hastening the emergence of laws that provide protection to the rights of fishermen and the health of traditional waters in Indonesia. Later the Constitutional Court ruling, fulfilling the lawsuit of civil society organizations and fishermen to cancel articles related to Coastal Water Concession Rights (HP3).

Market share
In the United States market itself, after Indonesia held a fishery product exhibition they liked the fishery products in the form of processed or fried (dried shrimp and dried fish). This is a vast market share for Indonesian fishery products, considering that America has a fairly high population and increasing awareness about healthy food, one of them is seafood, rather than other livestock (beef, chicken, etc.). The diversity of Indonesian fishery resources compared to other exporting countries makes its own competitive advantage. In addition, regulations and policies related to the export of Indonesian fishery products to one of the developed countries are not as stringent as other export destinations such as the EU which has Rapid Alert for Food and Feed (RASFF) and EU Food Legislation.

RESEARCH METHOD
This research is a descriptive research that aims to present a complete picture of the social setting or is intended for exploration and clarification of a social phenomenon or reality, by way of describing a number of variables concerning the problem and the unit under study between the phenomena being tested. In this study, researchers used qualitative methods in which the data collected and then studied into one full description of the impact of application of Regulation of the Minister of Marine and Fisheries No. 56 and 57 of 2014. This study aims to see the differences, between before and after the application of Regulation of the Minister of Fisheries and Marine Affairs Number 56 and 57 of 2014, in several aspects including: 1. Supply raw material (Fish) in Fishery Industry of Bitung City 2. Number of employees in the formulated or dismissed 3. Social and economic impacts in society 4. The condition of fish business and its impact (Fish Processing Company) in Bitung City The purpose of descriptive research is to produce an accurate picture of a group, to describe the mechanism of a process or relationship, to provide a complete picture of either verbal or numerical form, to present basic information about a relationship, to create a set of categories and to classify the subject of research, to explain a set of stages or processes, As well as to store information is contradictory about the subject of research.
Primary data in this research is the result of observation obtained through interview with related parties. Who experienced and felt the impact of the application of KP PERMEN.
Secondary data in this research are data obtained from BPS, DISPERINDAG, Ministry of Trade, World Trade Organization (WTO) data, regional data of Bank Indonesia North Sulawesi, and KADIN data.

Discussion
1. Raw materials decreased (supporting data from business actors), production of fishery products decreased (supporting data from business actors) AUPI Bitung consists of 7 fish canning units with daily fish needs of 620 tons, 5 units of wood fish processing (Katsubushi) with daily fish needs of 270 tons, 12 units of fresh tuna processing with fish requirement per day about 175 tons, and 29 units Freezing fish consumption per day about 338 tons. All of these are the labor-intensive processing companies using Direct Workforce totaling about 18,000 people (12,800 UPI + ABK who number around 5000 people) 2. The high number of employees (workers) who are dismissed and laid off Companies that lay off their employees until December 2014 are: 1. Etmieco Sarana Laut (400 people); 2. Carvinna Trijaya Makmur (950 people); 3. Deho Canning Co. (350 people); 4. Int'l Alliance Foods (850 people); 5. Manadomina Citrapratama (250 people); 6. RD Pacific (400 people)

Unemployment
Another impact of the moratorium, namely the dismissal of factory workers, labor of Kota Bitung in the last meeting (June 2015) is there are approximately 20,000 factory workers who are laid off, in the absence of raw materials. "Work number, Pay number". The same is true of the fishing sector. Prior to the moratorium, there were about 1,600 fishing and catching fleets in Bitung City, with 20,000 to 25,000 crew members (ABK). As a result of the moratorium, there is a 'housing' of about 14,000 to 16,000 crew, due to the linkage with the 57th ('Transshipment'). Yet since the 1990s, the Ministry of Marine Affairs and Fisheries has known and allowed the use of 'purse seine group' in fish catching business in the Pacific ZEE region.
In the purse seine group system, the capture vessel does not provide reservoir space, since the function is transferred to the container ship function. "Thus, crew capture ship ABK cannot operate, because the result can no longer be taken to by landing vessel to landing harbor The impact of moratorium is increasing when the fishermen in the hinterland can no longer be marketed to Bitung City due to the prohibition of cargo of fishery products by Ship 'transshipment' from one island to another.

Social Impact and People's Economy
After the enactment of Regulation of the Minister of Marine Affairs and Fisheries No. 56 of 2014 and Regulation of the Minister of Maritime Affairs and Fisheries Number 57, there is a very significant change in the City of Bitung. This has an impact on the decline of fishery products production, which is estimated to reach 80 percent of production capacity in 2013-2014. The impact of loss and loss experienced after the moratorium. Bitung not only experienced a decline in the number of fisheries production, but also a number of other significant losses, affected by the birth of the two regulation of the Minister of Marine and Fisheries bars.
Moratorium on foreign fishing boat licenses shall be regulated in the Regulation of the Minister of Maritime Affairs and Fisheries No. 56 of 2014 on Temporary Suspension (Moratorium) of Capture Fishery Business License in Fishery Management Area of the Republic of Indonesia. The most fundamental of the various complexities of the problems in a fishery business is the nature of its uncertain business. The moratorium should be able to provide certainty of the fishery business climate, among others, to ensure that businesses can catch and not, the type, and the number of fish. The problem is, the moratorium on foreign fishing vessel permit has not answered the fishery business uncertainty. An extended moratorium with no transparent results indicates too long the time it takes the government only to find out the ex-foreign ship crime mode. Meanwhile, business actors are affected by the impact of the policy. Moratorium on fishing vessels since November 2014 has affected the cap of a number of fishing businesses in the country. During this time, many large-scale fishing businesses purchased overseas fishing vessels due to the insufficient domestic production of fishing boats. The cessation of a number of fishing efforts in the country resulted in the decline in raw material supply for fish processing units. In Manado, North Sulawesi, there were eight closure fish processing factories and as many as 26,000 factory workers and fishery-related businesses were laid off.
Government policy on temporary suspension or moratorium on Capture Fishery Business License in Indonesian fishery management area is causing new problem. Fishery entrepreneurs are forced to lay off workers because they cannot take care of licensing to catch fish. As a result of the moratorium, many national entrepreneurs are forced to terminate their employment (PHK), thus increasing the number of unemployment and poverty.
Fish supply to the automatic processing unit stops. Employers question who will bear the burden of losses because their ships are not allowed to operate during this moratorium while salaried workers on board must remain paid, as well as salaries of employees in the fish processing unit. In the moratorium it is no longer allowed to employ foreign workers aboard the fishing vessel. So far, the fishing vessels still use foreign crew because it is very difficult to get local workers due to low work ethos to work on fishing vessels.
Currently, all fishing vessels, especially ex foreign ships, must stop at sea in Bitung, Beo and Ambon. For other things that are prohibited is not allowed to do transshipment (unloading at sea) without exception. However, it can be excluded for Tuna fishing vessels that must be exported immediately. The supervisory function must be tightened is not prohibited.
Another impact is SIPI (Fishing Permit) that has been paid to the Government as Non-Tax State Income (PNBP) for a year stipulated for 6 months until the end of the moratorium until April 2015. This is the same as the government takes the rights of the fishery business Who should be able to fish for fishing. The government should immediately dialogue with the stakeholders regarding the moratorium policy and what steps together to make our country victorious in the sea including the welfare of fishermen and coastal communities. If you wish to re-register, do so without terminating the operation of the fishing vessel for its valid license. Examination may commence on a vessel whose license has been denied and postpone its extension during the moratorium as well as to the company requesting a new permit. In the end all companies will get their turn for inspection, not stop all of their activities. It's just as deadly as their business. In this country when it comes to the affairs of the stomach, prone to conflict. Such a policy will certainly reduce the image of Indonesia in the eyes of other countries in investing in Indonesia Bitung City has long been recognized as the largest fishery industry town in North Sulawesi Province. This means that marine natural resources are sufficiently available to support economic activities in the fishing industry. At the end of 2014, the Ministry of Marine Affairs and Fisheries imposed several regulations called the Moratorium Policy. In general the content of the policy is to lay off some fishing industry activities such as banning foreign vessels above 30 GT, banning the transfer of cargo from catcher vessels to vessels. The implementation of this policy caused social problems in some parts of Indonesia including North Sulawesi Province. About 9,000 workers on board ships and factory employees were laid off.
One of the most visible impacts is the development of production capacity utilized by the fishery sector. As released by Bank Indonesia by the end of 2014, in the fourth quarter of 2014 or after the official moratorium rule came into force, production capacity increased sharply to above 81 percent. The fact is quite surprising because the previous year's highest production capacity in the fourth quarter was a maximum of 73.63 percent. It shows that there is an increase in production in the national fishery sector because foreign ships are not sailing anymore.

Conditions of Fish Business Actors and Direct Impacts
The Fish Processing Unit or UPI Bitung oversees 53 units of active fish processing currently employing approximately 12,800 thousand employees. They have not worked a year maximally or about 83% have been terminated / termination of employment after issuing 56 regulation of moratorium (57)  Fish canning (7 units), installed capacity = 620 tons / day. Realization Average production per day = 260 tons, or 42% of installed capacity or export of canned fish and loin to various countries (USA, EUR, Middle East, etc.) with transaction value of about 1.7 trillion Rupiah. Total Employees / Employees 6,467 persons. Katsubushi (wooden fish 5 units). Installed capacity = 270 ton / day, Average Actual Production per day = 135 ton, or 50% of installed capacity or has occurred Export of wood fish to Japan, Korea and Taiwan with transaction value around 500 Billion Rupiah Total Workforce 1,802 people.
Fresh Tuna Processing (12 units) with installed capacity = 175 tons / day. Realization Average production per day = 102 tons of Tuna fish, or 58% of installed capacity or have been exported Export Fresh Tuna Pocket to Japan, Korea and Asia with transaction value around 1.3 Trillion rupiah. Total Labor = 2,333 people.
Frozen / Freezing Unit (29 units) with installed capacity = 338 tons / day. Realization Average production per day = 219 tons of Tuna, Tuna, Layang, Tongkol. Or 64% of installed capacity or local transactions have occurred about 650 Billion Rupiahs. Number of Labor 2,247 people. Conclusion 1. Raw materials decreased (supporting data from business actors). Raw materials for the fishery industry is very important, without the availability of raw materials will impact on the capacity of production that is not maximized and also impact on the utilization of less labor to trigger layoffs (layoffs), the number of workers in the fishery industry sector, Other economics is the value of fishery industry exports that decline and impact fishermen's income and workers in the sector of fisheries industry is declining. 2. Decreased fishery product production (supporting data from business actors). 3. The production of fishery products is less due to the fishery moratorium policy from the ministry of KKP. Income of business actor (Fishery Company) decreased. The income of fishery business actors is highly dependent on the operationalization of the fishery industry. When a fishery moratorium implies a decline in the income of fishery business actors that negatively impact fisheries industry workers. The high number of employees (workers) who are laid off and dismissed. The export value of the North Sulawesi fishery products is decreasing 4. The impact of fishery moratorium also has implications on the ability of fishery industry players in returning loans or fishery credit that is less or decreased so that it can result in high credit in the fishery sector. 5. The impact of the moratorium also affects the exchange rate of fishermen because the fishermen acceptance index is one indicator of Fisherman's Exchange Rate also decreased.