Counting on Their Long Coastlines, Indonesia and the Philippines Seek Self-Sufficiency in Salt

As archipelagoes, Indonesia and the Philippines are surrounded by salt water, making them ideal for salt production. However, both have relied on salt imports over the years.

In recent years, the two countries launched plans to be self-sufficient in salt. Indonesia and the Philippines are among the top 10 countries with the longest coastlines. Indonesia, at number 3, has 54,716 kilometers (km), while the Philippines, at 7th place, has 36,289 km.

During their meeting in October last year, BIMP-EAGA ministers welcomed initiatives to support the salt industry as part of the subregion’s blue economy strategy. This strategy leverages on the ocean as a new engine for sustainable growth with opportunities in both traditional and emerging sectors, such as renewable energy, biotechnology, and research.

Increased support for salt producers

Indonesia aims to be self-sufficient in table salt starting this year and industrial salt by 2027. The Philippines is giving itself 5 years.

Indonesia’s drive for salt self-sufficiency is contained in Presidential Regulation No. 126 of 2022, Acceleration of the National Salt Development, which seeks to develop the salt industry to meet domestic demand. It calls for the development of pre-production, production, post-production, processing, and marketing of the salt industry. The initiative is in line with the government’s commitment to be food self-sufficient.

In March last year, the Philippines enacted a law to strengthen and revitalize the salt industry. According to the Philippine Salt Industry Development Act, the government will provide support to revive the industry until the country becomes self-sufficient and producers are able to export.

With the initiatives, salt producers in BIMP-EAGA areas in Indonesia and the Philippines are likely to get a boost from their respective governments.

Sulawesi is among Indonesia’s salt producing provinces, along with Java, Nusa Tenggara, Gorontalo, Bali, Yogyakarta, and Aceh.

In the Philippines, the 2024 law identified Misamis Oriental in Mindanao and Palawan—both covered by BIMP-EAGA—among the priority provinces suitable for salt production. The law also named Ilocos Norte, Ilocos Sur, La Union, Pangasinan, Zambales, Bataan, Occidental Mindoro, Oriental Mindoro, Marinduque, Quezon Province, and Antique. Support for existing production areas in Mindanao, as well as in Luzon and Visayas will also be provided, according to the law.

Consumption and imports

Before starting their drive for self-sufficiency in salt, Indonesia for a time imported about half of its salt needs, and the Philippines, 93%.

In 2023, Indonesia imported $135.31 million worth of salt, while the Philippines brought in $43 million.

A study looking into Indonesia’s salt industry said salt imports have shown an increasing trend between 2019 and 2023, averaging 2.72 million tons annually. According to a news report, domestic salt production in 2023 totaled 2.5 million tons, while demand was pegged at 4.9 million tons, resulting in a supply gap.

In the Philippines, local salt farmers produced an average of 89.67 million kilos while actual demand stood at 983,000 metric tons annually.

Industry challenges

In both countries, salt producers face various challenges.

In Indonesia, the study examining the salt industry said these include unpredictable weather and climate conditions, farmers’ lack of knowledge of advanced technologies, low absorption of local salt due to poor quality, and a fragmented local market limiting farmers’ bargaining power.

In the Philippines, production was also adversely affected by extreme weather, in particular, prolonged wet seasons and rains, as well as insufficient government support, among others. A previous law requiring salt producers to produce iodized salt also contributed to the industry’s ills as they were unable to comply due to technology and know-how limitations. Urbanization also became an issue as salt farms were converted into residential and commercial properties.

Aiming for industry revival

With Indonesia and the Philippines launching their salt self-sufficiency initiatives, authorities hope local production will eventually meet demand.

According to the Indonesia study, interventions should include identifying and expanding existing pond areas using advanced tools and technology, strengthening the capacity of salt farmers through trainings on new technologies, improving the quality of local salt through incentives aimed at businesses that process and use local salt, strengthening governance and institutional support to the industry, and stronger government intervention in implementing policies that focus on increasing salt production and quality.

In the case of the Philippines, the salt industry law said interventions include

• allocating public lands for salt production;
• construction of roads linking salt farms to market;
• supporting research in developing new salt production technologies, particularly those allowing year-round production even with erratic weather;
• mechanization of production;
• providing trainings to producers to ensure quality of salt produced;
• helping producers organize into associations or cooperatives;
• supporting producers in trade and export;
• making it mandatory to use domestic salt for government programs; and
• granting fiscal incentives to salt producers.