The gathering of shrimp industry players in Banyuwangi, East Java, in mid-October was more intense than in previous years. This is because the shrimp export business is facing a major problem. Last August, the United States threatened to halt shrimp exports from Indonesia due to an incident that made Indonesian shrimp products look bad. 

The United States Food and Drug Administration found radioactive elements that were about to enter several ports in Uncle Sam's country, and were even rumored to have entered Walmart stores in the United States last August. 

The forum initiated by Shrimp Club Indonesia (SCI), which was attended by entrepreneurs, shrimp farmers, shrimp entrepreneurs, and shrimp farming facilities providers from Sumatra, Java, Bali, and West Nusa Tenggara (NTB) also felt a common concern, because the United States, which is Indonesia's main shrimp export market, has the potential to shift its demand to other countries.

And this could have a tremendous impact. "If exports to the US are not immediately opened, everything will be paralyzed. Cold storage is full, farms can't sell, prices drop, and cash flow dies," said Andi Tamsil, Chairman of Shrimp Club Indonesia (SCI), an association of shrimp farmers and exporters.

If exports to the US are not opened soon, everything will be paralyzed. Cold storage is full, farms can't sell, prices drop, and cash flow dies.

The source of this problem stems from the discovery of radiation exposure in the Cikande industrial area, Banten, which is said to come from the smelting of imported scrap iron containing radioactive elements. Although the levels of Cs-137 found were relatively small, around 68 becquerels per kilogram (Bq/kg) and still below the safe threshold, the radiation attached to processed shrimp packed in Cikande, immediately made the US Food and Drug Administration (FDA) tighten all shrimp imports from Indonesia.

Since then, every shrimp product that wants to enter Uncle Sam's country must be accompanied by radiation-free certification, something that has never been required before. On the other hand, the certification system and tools are not yet fully in place in Indonesia.

Although the government has already begun to complete the certification tools. According to Andi Tamsil, the process towards implementing the new certificate is now in its final stages. He mentioned two important deadlines that business actors are waiting for. 

"The FDA has scheduled the mandate to the Indonesian quality agency on October 18. If all goes according to plan, on October 22, the new certificate will begin testing," Andi said when contacted by SUAR, Monday, October 20, 2025.

According to him, if the trial process goes according to plan, shrimp exports that have been held up can be sent back to America. "If it can be sent, exports will resume, and the supply chain can revive. That is our hope," he said.

Domestic market stagnates

Although exports are expected to recover soon, among shrimp farmers, market sluggishness is still being felt. Andi said many farmers are now complaining that shrimp prices have fallen sharply by 30% to 40% due to stagnant market uptake. "Now that uptake is very limited, prices are also depressed. Many farmer friends in the regions are already screaming," said Andi Tamsil. .

Prior to this case, Indonesian shrimp exports to the United States were worth more than US$ 2 billion per year. The US is the largest market for Indonesian shrimp, with up to 70% of exports going to the US. But since August, export volumes have almost completely stopped. In addition to the closed export market, the additional certifications requested by the FDA are also not fully ready in the country. 

"Before this case, there were already several types of certification. But with this radiation case, a new certification for Cs-137 was added. Even last week, the tools and SOPs were not clear. Only recently have they become available," Andi said.

On the other hand, cold storages in East Java, Lampung and South Sulawesi are now full of frozen shrimp stocks that cannot be shipped. Some entrepreneurs are forced to postpone harvesting because the warehouses are full and cash flow is not moving. "Actually, the quality of shrimp is still safe in 1 month to 2 months, but because there is no purchase, the warehouse is full, cash flow is stuck. Many are adding cold storage capacity, but the funds are tight," Andi explained.

Some farmers have even started selling their shrimp in the local market at much lower prices just to cover their daily costs. "If left unchecked, it could collapse. This is not just an economic problem, but a social one too, as thousands of shrimp farmers and processors depend on it for their livelihoods," he said.

To expand the domestic market, SCI also held a seminar in Banyuwangi last week to educate the public about the nutritional benefits of shrimp. "We want people to know that shrimp is healthy and now the price is more affordable. If the local market starts to absorb it, the burden on farmers will be reduced," Andi said.

While waiting for certainty from the FDA, Shrimp Club Indonesia in collaboration with the Ministry of Marine Affairs and Fisheries is trying to mobilize the domestic market through a shrimp eating campaign.

Adverse effects

The crisis in shrimp exports to the United States is also considered not just a matter of goods being held back. Once the flow of money stops, the entire production chain can be shaken. Feed mills lose buyers, transportation logistics stop, and thousands of seasonal workers start losing income. Many entrepreneurs also postponed the stocking of new seedlings, fearing that capital could not be returned.

"Now there may not be massive layoffs, but incentives, food allowances, bonuses, have all begun to be reduced. If there is no clarity in the next four or five months, the impact could be much more severe," Andi said.

In the midst of this situation, banks also began to be wary. Loans to the shrimp farming and processing sector are categorized as high-risk, due to disrupted cash flow. Andi said that some SCI members began to ask the government to open the possibility of credit restructuring or low interest incentives, so that their businesses do not die, before exports are reopened.

The shrimp industry is starting to unravel. Cross-agency coordination is now in motion. The Ministry of Maritime Affairs and Fisheries (KKP) through the National Quality Agency was appointed as the official certification body for Cs-137 testing. However, all are still waiting for official confirmation and verification from the FDA. "The authority has been given, but it must be ascertained whether they are ready in terms of tools, human resources, and mechanisms," Andi said.

He also emphasized that Indonesia cannot make its own standards without FDA approval. "Everything is from the FDA, including the SOP. Because they found the case, so they determine the conditions for the product to re-enter," he said.

Andi hopes that the government will accelerate cross-ministerial handling, including banking support so that business actors have additional breath. "If cold storage is empty, banks can help through incentives or revolving credit. The important thing is that the government has good intentions first," he said.

Apart from the American market, the domino effect is starting to be felt in other countries. "There are several countries such as Japan and China that are also starting to question Indonesia's condition. If this is not resolved soon with America, other countries may also doubt," he said. 

He considers that international market confidence is the most vulnerable thing to be lost, and it takes a long time to be restored. For this reason, SCI is actively encouraging the government to accelerate negotiations with the FDA. They hope that the new certification will be recognized soon and exports can be reopened by the end of October.

According to him, this case should be an alarm for the government to strengthen the cross-sectoral supervision system, starting from the Nuclear Energy Supervisory Agency (Bapeten), Customs, to security forces, so that radioactive materials no longer enter the industrial or export channels.

Negotiated solution  

Amid fears that the shrimp industry could collapse and attract its supporting sectors, the Ministry of Maritime Affairs and Fisheries has finally reached a dispensation agreement for thousands of containers of shrimp en route to the United States from the FDA. The agreement took place on October 18 US time, after a series of negotiations related to new import regulations, namely Import Alert (IA) #99-52.

 "After several negotiations through a special channel Virtual Bilateral Meeting with the FDA, finally their high level leaderships decided to allow the entry of thousands of containers of shrimp from Indonesia that are in transit and will arrive in the US after October 31, 2025," explained the Head of the Quality Control and Supervision Agency of Marine and Fishery Products (Quality Agency of KKP), Ishartini.  

Ishartini explained that her party managed to convince the FDA that more than 1000 containers of shrimp that will arrive in the United States on October 31 have gone through the quality assurance process and are equipped with Quality Certificates (SMKHP) issued by KKP.  

However, upon arrival in the US, thousands of containers of shrimp will still be inspected by the FDA to check for Cesium-137 contamination in accordance with US regulations. Cesium 137-related inspections are also in effect for shrimp containers that entered before October 31.

Not only can the Ministry of Maritime Affairs and Fisheries (MMAF) try to get shrimp shipments that are already headed to the United States to enter the port, but it has also been recognized by the US Government as a Certifying Entity (CE) for shrimp exports to the US. 

With this recognition, shrimp products that can enter the US market must have a Quality Certificate issued by KKP. Thus, later exporters, especially from Java and Lampung, are required to use a Quality Certificate issued by KKP. 

Meanwhile, to protect Indonesian export commodities so that they do not experience unwanted radiation exposure, it is necessary to tighten the traffic flow of goods both entering and leaving. In this case, the Nuclear Energy Regulatory Agency (Bapeten) will supervise the new rules for the implementation of the Radiation Portal Monitor (RPM) at the entrance of the import door with the Directorate General of Customs in charge. "This enforcement will be mandatory, especially in 18 international ports," said Haendra Subekti, Deputy for Nuclear Safety Assessment at Bapeten.  

Currently, according to Haendra, there are only four ports that have RPM, based on information from Customs. The reason is simple, the budget. Because the cost of procuring these tools is charged to exporters. So every incoming container will be charged a service fee.

Another effort is to make regulations for the installation of Radiation Portal Monitors in industrial areas, as well as air quality monitoring devices. In addition, industrial estates are also asked to install a Radiation Data Monitoring System (RDMS), which is a detector that can measure environmental radioactivity.

"RDMS is installed for non-nuclear industrial areas, as early detection if there is radioactive exposure from industrial processes," Handra explained. Currently, Bapeten has 37 RDMS installed at nuclear facilities such as in Serpong, Yogyakarta, and Bandung, as well as several at the border to detect potential contamination from abroad. 

"Together with BMKG, we installed this tool, and there are only 38 units. In the future, industrial estates are also required to install RDMS. Although this is a long-term program, the implementation is targeted to start in the next 1-2 years," he said.

Mukhlison, Dian Amalia, and Gema Dzikri