Aruna and Pasar Laut Digital: Helping Fishermen Getting Best Price

Utari (bottom left corner), founder of Aruna and Pasarlaut, is posing with her team. Personal photo.

Three alumnae from Telkom University, Bandung; Utari Octavianty, Indraka Fadhlillah, and Farid Naufal Aslam begin setting up a startup company fishery industry in 2015. They help fishermen increasing sea catch distribution by utilizing Rp10 million, the prize money they get after joining a business plan competition held by Padang State University. They use the money as a capital to run an online market namely Pasarlaut.com.

“Pasar laut is a sell-and-buy digital portal that connects fishermen with buyers through lokapasar that we create. With pasar laut, we can add price from fishermen while lower price from buyers’ side,” Utari said she was encountered in Ambon, May.

Pasarlaut.com is managed by PT Aruna. The portal flourishes after successfully makes it to Technology Business Incubation program held by the Ministry of Technology, Research and High Education. The three then educate fishermen on the coast of outside Java, such as Sumatera, Kalimantan, Maluku until Papua, writes Okezone.com.

Along with industry 4.0, Aruna doesn’t only work as sea catch e-commerce site but also as big data collector because it supplies real-time sea catch data from fishermen. Utari said three applications were made. The first is used by fishermen to update sea catch right after they return from the sea. Uploaded data include the amount and the type of the sea catch.

The data then goes into the second application that can be accessed by the government and private sector that need them. The third application is called pasarlaut.com, which serves as a sell-and-buy place with the uploaded data.

Firms must sign a contract before ordering and obtain services. After ordering, Aruna contacts fishermen to ensure their abilities to meet the sea catch quota. The transaction will commence after those steps are completed. The system brings in not only domestic consumers but also foreign ones, like those from Vietnam, Singapore, Malaysia and now will enter Japan.

Paying system will firstly go to the fishermen. Aruna doesn’t want to make a mistake which is done by middlemen who owe previous payment to the fishermen. If buyers don’t immediately pay, Aruna is ready to bail it so that the fishermen will get the money first.

Unafraid of Facing Threats

At first, a lot of fishermen decline offers from Utari and her friends. Not only that, they are met with mockery and even threats from middlemen. From this point, they realize assisting fishermen isn’t as easy as turning the palm of the hand. As a result, they recruit field staffs and local prominent leaders to do public campaigns and teach them using devices for utilizing the three applications.

“Aruna’s mainstays are, yes, the field staffs. We ask for them staying there until they win the fishermen’ hearts,” she said.

According to Utari, there must be a total change within the sea and fishery system to benefit fishermen. So far, fishermen obtain low prices from sea catch that they collect after battling against savage sea condition, not middlemen.

Utari cited the price of skipjack fish which is at Rp15,000 from fishermen but is at Rp26,000 in the market. Another example is the price of red snapper which is at Rp25,000 from fishermen but rises up to Rp250,000 when the red snapper is sold in China. This condition is what makes fishermen get low revenue and are difficult to get rid of the poverty circle.

Best Price Through Digital Economy

Now Aruna has worked with 55 cooperatives, 1,700 fishermen in 16 provinces, and has operated six warehouses equipped with the cooling system with the turnover of between Rp200 million and Rp500 million per month depending on the season. Aruna doesn’t only sell fishes; like tuna, cob and skipjack, but also crab, shells and lobsters. There are a total of 86 types of sea products in Aruna.

As taken from Aruna.co.id, the application makes existing fishery trade link more efficient thus can provide maximum benefit for partnered fishermen and buyers. This system makes partnered fishermen can get market certainty and better prices. Buyers can also get good quality products.

Data from Aruna mentions that fishermen can obtain prices that are 20% higher than the prices in conventional markets. On the other hand, consumers obtain prices that are 15% lower than they have to usually pay. Fishermen then enjoy more advantages.

“After becoming Aruna fisherman, I obtain good prices and the scale is also correct. Now, I can get money, I don’t find myself get confused about purchasing daily needs and pay house rent fees,” said Awal, a fisherman from Berau Regency, East Kalimantan.

The step from Aruna that helps fishermen by making use of the digital application is an innovation to reduce the economic gap in Indonesia. Similar solutions are expected to emerge during Indonesia Development Forum 2018 that will take place on 10-11 July 2018 in Jakarta.

This year, IDF takes a theme of “Pathways to Tackle Regional Disparities across the Archipelago”.  IDF 2018 will analyze main the issues and challenges in efforts of overcoming economic and human development gaps in many areas in Indonesia. The result of the IDF 2018 will be used as materials to compose National Medium Term Development Plan 2020-2024. **