The Ministry of Marine Affairs and Fisheries has received two units of vessels donated by Japan, namely the Orca 05 and Orca 06 on 2023

Indonesia Secures Major Spanish Loan to Combat Illegal Fishing with Integrated Surveillance System

INDONESIA
Friday, December 05, 2025, 06:00 (GMT + 9)

The House of Representatives Commission IV approves Rp2 Trillion toward the Rp5.8 Trillion project, while Spain commits to financing four 70-meter vessels constructed by its domestic shipyards.

JAKARTA—The Indonesian government has formalized a substantial foreign loan from Spain to significantly bolster its maritime defense capabilities against illegal fishing. On Wednesday, November 5, 2025, the House of Representatives Commission IV officially approved an additional budget of Rp2 Trillion (equivalent to approximately US$120 million) for the Ministry of Maritime Affairs and Fisheries (KKP) to service the Spanish loan.

Photo of existing patrol vessel Photo: Ministry of Maritime Affairs and Fisheries (KKP)

The financing is allocated to the Maritime and Fisheries Integrated Surveillance System (MFISS) project, a comprehensive initiative aimed squarely at combating illegal, unreported, and unregulated (IUU) fishing. The total project investment is valued at Rp 5.828 trillion (US$350 million), although some reports suggest the full loan could reach up to Rp 6.49 Trillion. The Spanish loan is structured with a concessional repayment period of 30 years.

Urgent Need for Surveillance

Minister of Maritime Affairs and Fisheries, Sakti Wahyu Trenggono, emphasized the critical nature of the project. He noted that Indonesia currently operates only 34 surveillance vessels, which have an average age of 15 years. Minister Trenggono stated that the nation ideally requires 70 vessels to effectively patrol its six fishing zones.

The MFISS initiative will fund the construction of approximately 10 new vessels over a three-year period, targeting completion by 2028. Specifically, four 70-meter ships will be built in Spain, while the remaining six 60-meter ships will be constructed domestically.

Indonesia comprises more than 17,000 islands, including Sumatra, Java, Sulawesi, and parts of Borneo and New Guinea. It is the world's largest archipelagic state and the fourteenth largest country by area, with 1,904,569 square kilometers (735,358 square miles).

Beyond the ships, the MFISS project will also upgrade technological surveillance, including maritime intelligence networks, secure data infrastructure, regional monitoring centers, drone capabilities, and an intelligence-based fishing monitoring center. Trenggono highlighted that losses due to IUU fishing between 2020 and 2025 totaled a staggering Rp16 trillion (US$960 million), during which 1,149 illegal vessels were captured.

Spanish Commitment and Domestic Impact

From the Spanish side, the credit facility—authorized by the Spanish Council of Ministers—is provided under concessional terms from the Fondo para la Internacionalización de la Empresa (FIEM). Reports in Spanish media specified the credit as 150 million euros (approximately US$162 million), earmarked specifically for the four surveillance vessels being built abroad.

The Ministry of Maritime Affairs and Fisheries (KKP) requires expanding not only its fleet but also its operational, logistical, and maintenance capacity for its future fleet.

The agreement directly benefits Spanish industry, with the Galicia-based shipyard Construcciones Navales Paulino Freire (Freire Shipyard) identified as a key beneficiary of the contract to construct the vessels.

Despite the necessity stressed by the KKP, the loan faced scrutiny in Indonesia. Firman Soebagyo, a member of DPR Commission IV, was quoted in local media as criticizing the debt, arguing that the large foreign loan was "not urgent" and would increase the national debt burden. Nevertheless, Commission IV Chair Siti Hediyati Hariyadi (Titiek Soeharto) secured the approval, stating the project would enhance maritime surveillance and strengthen law enforcement, ultimately protecting fishermen and national fishing territories.

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