Allocative Efficiency of Tuna Fishing Business in South Prigi Waters, East Java

Abstract

Tuna resources have an important economic value and are spread across most of Indonesian waters, ranging from western Indonesian waters to eastern Indonesian waters. One of the distribution of tuna fish in Indonesia is East Java Province. Tuna fishing business is an economic activity carried out by small-scale fishermen by combining resources such as fishing costs, fishing experience, frequency of fishing, ship tonnage, engine power, and the amount of fuel used for fishing) to achieve the main goal of making a profit. This research is important to determine the factors that affect the productivity of tuna fishing business, analyse the allocative efficiency of the factors of production of tuna fishing business, and analyse the profits obtained by fishermen in their business of catching tuna in the waters of Prigi south of East Java. The research method used is descriptive through observation interviews and documentation. This research was conducted on tuna fish fishermen on the coast of Prigi, East Java Regency. The results showed that the conclusion of the factors that affect the productivity of tuna fishing business are fishing costs, fishing experience, frequency of fishing and ship tonnage. The use of fishing costs, frequency of fishing, and ship tonnage used by fishermen still has not reached the allocatively efficient level. The average production cost per year incurred is still relatively high, not proportional to the profit earned each year. This is because the biggest cost incurred is the cost of diesel fuel.