Caught in the net: Unravelling policy challenges and smuggling dynamics in Indonesia’s puerulus exploitation

Indonesia’s natural puerulus resources position the country as a potential leader in lobster aquaculture. Over the
last decade, frequent policy changes aimed at restricting exports have been enacted to encourage domestic
aquaculture production; however, illegal trade has increased. This study explores Indonesia’s puerulus gover
nance, analysing the impact of export bans on illegal trade and resources management from 2015 to 2022. We
examined the strategies employed by fishermen and other business groups in puerulus trading and smuggling,
and their implications on the state revenue by combining court rulings and semi-structured interviews with
fishermen and puerulus dealers. We found that the export ban policy has spurred (1) illegal trade, further
straining the struggling fishers, (2) potential loss of government revenue from puerulus export, and (3) the stalled
domestic aquaculture industry due to the absence of capacity building and enabling environments for domestic
production to complement the export ban. Our results indicate that the weak legal enforcement may be the
reason the export ban did not work and local aquaculture development has not progressed as expected. Future
puerulus management policy underscores the needs for a balanced approach that combines liberal trade policies
with strict law enforcement and monitoring, along with capacity building and institutional support for fishermen
and the private sectors to develop local aquaculture and curb illegal trading.