Minister of Marine Affairs and Fisheries Regulation No. 16 of 2026 Amends the Provisions on the Establishment and Development of Institutional Structures for Business Actors in the Marine and Fisheries Sector

Introduction

On 21 October 2026, the Minister of Marine Affairs and Fisheries enacted Regulation of the Minister of Marine Affairs and Fisheries of the Republic of Indonesia Number 16 of 2026 concerning the Establishment and Development of Institutional Structures for Business Actors and Supporting Actors in the Marine and Fisheries Sector (“Minister of Marine Affairs and Fisheries Regulation No. 16/2026”), which came into force on 22 October 2026. This Regulation governs the establishment, assessment, capacity building, and dissolution of institutional structures for business actors and supporting actors in the marine and fisheries sector, including groups of fishers, fish farmers, fishery product processors, salt farmers, marine tourism managers, supervisors, and conservation advocates.

The urgency of issuing Minister of Marine Affairs and Fisheries Regulation No. 16/2026 stems from the need to strengthen institutional structures for business actors and supporting actors in the marine and fisheries sector so that they become more independent, professional, and competitive, while also improving the effectiveness of capacity-building activities. Furthermore, Regulation of the Minister of Marine Affairs and Fisheries Number 28 of 2024 was considered no longer consistent with legal and organizational requirements and therefore needed to be replaced. Through these provisions, Minister of Marine Affairs and Fisheries Regulation No. 16/2026 aims to clarify the administrative status of institutional structures, establish standardized assessment mechanisms, and promote the gradual enhancement of institutional capacity and classification until such structures are capable of developing into cooperatives or business entities.

Comparison

Minister of Marine Affairs and Fisheries Regulation No. 16/2026 revokes and replaces Minister of Marine Affairs and Fisheries Regulation No. 28/2024, as stipulated in Article 70. The differences between the two regulations are presented in the following table.

Key Provisions

Types of Group Institutional Structures and Their Functions

Articles 2 through 6 govern the establishment of institutional structures for Business Actors and Supporting Actors in the marine and fisheries sector through the formation of institutional structures and assistance in fulfilling administrative requirements. The institutional structures established consist of Groups and Combined Groups, as detailed below.

Establishment and Approval of Groups

Pursuant to Article 7, the establishment of a Group must satisfy the following criteria:

• Comprise 9–25 members.

• Have a prospective chairperson and a division of responsibilities agreed upon jointly.

• Not have legal entity status at the time of its initial establishment.

In addition, the establishment of a Group takes into account binding factors, including common business interests and support from community leaders.

The establishment process begins with identification by a Fisheries Extension Officer or upon the request of a business actor, followed by preparation, socialization, and deliberation for verification purposes. Prospective members must submit copies of their business actor identification cards. For those who do not possess such cards, the documents may be replaced with a national identity card (KTP) and a certificate of business domicile.

The results of the deliberations are recorded in minutes acknowledged by the Subdistrict Head or Village Head. Subsequently, the Head of the Marine and Fisheries Extension UPT issues a Group approval letter no later than 14 working days.

Administrative Requirements and Competency Classification

Once a Group has been approved, assistance is provided to complete its institutional administration, including the establishment of a management committee comprising at least a chairperson, secretary, and treasurer; the preparation of the Articles of Association and Bylaws (AD/ART); a business plan covering a period of one year; a Group profile; and administrative registers.

The assessment of the Group's Competency Classification must be conducted no later than 6 months after the initial assistance by an assessment team established by the Head of the Agency, as stipulated in Articles 25 and 26. The assessment uses general indicators weighted at 30% and specific indicators weighted at 70%. Based on the assessment results, Groups are classified into four categories according to the following score ranges:

• Beginner: score ≤ 250.

• Advanced: score > 250–500.

• Intermediate: score > 500–750.

• Main: score > 750–1,000.

Subsequently, the Head of the Marine and Fisheries Extension UPT issues a recognition certificate no later than 14 working days. The first recognition certificate is issued in white and assigns the Group to the beginner classification, regardless of the results of any previous classification assessment.

Combined Groups

Pursuant to Article 30, the establishment of a Combined Group must satisfy the following requirements:

• Consist of at least 3 Groups that have each been established for at least 1 year.

• At least 1 Group must have attained the advanced classification or a higher classification.

• Maintain proper administrative records and financial management.

• Obtain written declarations of support from all members.

The stages for establishing a Combined Group follow a process similar to that for establishing a Group, as stipulated in Articles 32 through 38. Approval is granted by the Head of the Marine and Fisheries Extension UPT no later than 14 working days. Subsequently, recognition of the Combined Group is recommended to be carried out no later than 6 months after the initial assistance, in accordance with Articles 49 and 50.

Development, Monitoring, and Evaluation

A Group that has received formal recognition may be proposed for promotion to a higher classification no earlier than 6 months after the recognition of its most recent classification, in accordance with Article 52 paragraph (3). Recognition certificates are issued according to the classification attained: pink for the advanced classification, yellow for the intermediate classification, and light blue for the main classification.

If the assessment results indicate a decline in the score to below the threshold for the Group's current classification, the Group is recommended for downgrading and provided with capacity-building assistance. This provision is set out in Article 55. Meanwhile, assistance to Groups is limited to a maximum of 4 years for the beginner classification, 4 years for the advanced classification, and 5 years for the intermediate classification, calculated from the recognition of the most recent classification.

As part of institutional development, Groups are also encouraged to transform into cooperatives, legal entities, or business entities, as provided for in Article 58.

Monitoring and evaluation are conducted periodically, with responsibilities allocated as follows:

• Fisheries Extension Officers: Conduct monitoring every 3 months.

• Extension Coordinator, Head of the UPT, and Head of the Center: Conduct monitoring and evaluation annually.

Dissolution, Reporting, and Funding

Pursuant to Article 64 paragraphs (2) and (3), a Group or Combined Group may be dissolved based on the results of monitoring and evaluation if any of the following conditions is met:

• The number of members or the number of constituent Groups no longer satisfies the minimum requirements.

• The Group has not conducted business activities for 2 consecutive years after receiving capacity-building assistance.

• The Group experiences internal conflicts that cannot be resolved.

• The Group experiences financial failure.

Dissolution is determined by the Head of the UPT through the revocation of the approval letter and recognition certificate. However, such dissolution does not alter the cooperative or legal entity status already held by the Group or Combined Group, in accordance with Article 65.

Reports on the implementation of institutional establishment and development activities must be submitted through the established reporting hierarchy every 3 months, as stipulated in Article 66. Funding is sourced from the State Budget (APBN), Regional Budget (APBD), and/or other lawful funding sources, in accordance with Article 68.

Transitional Provisions

Article 69 sets out transitional provisions applicable to Groups and Combined Groups upon the entry into force of the new Minister of Marine Affairs and Fisheries Regulation. Groups and Combined Groups previously established under Minister of Marine Affairs and Fisheries Regulation Number 28 of 2024 continue to be recognized. Meanwhile, ongoing processes for the establishment of Groups and the assessment of their Competency Classifications, as well as unfinished processes for establishing Combined Groups, must be adjusted to comply with the provisions of the new Ministerial Regulation.

Closing

The issuance of Minister of Marine Affairs and Fisheries Regulation No. 16/2026 changes the rules governing the establishment and development of institutional structures for business actors and supporting actors in the marine and fisheries sector, particularly with respect to establishment and approval mechanisms, competency classification assessments, capacity building, and monitoring and evaluation. Compared with Minister of Marine Affairs and Fisheries Regulation No. 28/2024, the new regulation clarifies administrative procedures, establishes the allocation of authority, and regulates follow-up measures concerning downgrading and the eventual dissolution of institutional structures.

The existence of Groups and Combined Groups that have already been established continues to be recognized. However, ongoing establishment and classification assessment processes must be adjusted to comply with the new provisions. Accordingly, business actors, fisheries extension officers, and relevant agencies must understand and adapt the implementation of institutional activities to the requirements of Minister of Marine Affairs and Fisheries Regulation No. 16/2026.