How the Cesium-137 Shrimp Contamination Case Could Harm Indonesia's Export Reputation

4 hours ago 1

October 22, 2025 | 04:52 pm

TEMPO.CO, Jakarta - Nimmi Zulbainarni, an economist specializing in marine and natural resource economics at the School of Business at IPB University, estimates that the losses due to the issue of Cesium-137 contamination in shrimp will not be insignificant. The problem of radioactive contamination is rooted in issues of quality management and supply chain management that need to be addressed to avoid damaging Indonesia's reputation for exports.

"Shrimp contributes about 36-40 percent of the total value of fishery exports in Indonesia. If exports are disrupted, the impact could reach hundreds of millions of dollars per year," said Nimmi in a written statement on Wednesday, October 22, 2025.

Data from the Ministry of Maritime Affairs and Fisheries (KKP) in 2024 indicates that the United States absorbs about 63 percent of Indonesia's shrimp exports, with a value of US$477 million in the first half of 2024. Potential losses could reach US$200-300 million annually if there are import restrictions, risks of rejection, or re-exports.

According to Nimmi, export disruptions not only have direct impacts but also put pressure on domestic shrimp prices. "Every 10 percent decrease in exports can reduce domestic prices by up to 8 percent," she said. Small-scale shrimp farmers are likely to be the most affected because production costs, such as feed and energy, remain high.

Nimmi believes that this case stems from the weak quality control, inefficient supply chains, and the lack of incentives for compliance with international standards. Currently, only about 45 percent of fish processing units (UPIs) are certified with Hazard Analysis and Critical Control Points (HACCP) and Best Aquaculture Practices (BAP). More than 70 percent of small-scale ponds do not have certification for Good Aquaculture Practices (CBIB).

"Long supply chains increase the risk of quality degradation, especially since most have not fully implemented cold chain management. Without incentive support, small players find it difficult to meet international standards," explained Nimmi.

She warns that the Cesium-137 contamination case could tarnish the reputation of other commodities such as tuna, crab, and seaweed. Once the quality image is disrupted, it is not impossible for importing countries to tighten control over all marine products from Indonesia.

As a solution, Nimmi suggests systemic reform through risk-based monitoring, digitalization of certifications, and the implementation of cross-commodity traceability. "This crisis should be a momentum for strengthening quality management so that our fisheries industry becomes more resilient and competitive in the global market," she said.

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