Shark fins are one of the most expensive seafood commodities in the world. Shark fins consist largely of soft collagen and elastin fibres commonly referred to as fin needles. They are highly prized and sought after by the Chinese as a luxury culinary delicacy. When processed, they form the basis of a number of favourite Chinese dishes, most notably shark fin soup. Shark fin soup is associated with prestige, banquet dining and is used to honour or impress special guests on important occasions (Lai Ka-Keong 1983: 35). ^[3] The value of shark fins varies according to the species (black or white), the size, and the types of cut (Rose 1996: 49).

After World War II, the consumption of shark fin was discouraged by the Communist government in China as it was associated with élitism and bourgeois standards. However, in the mid 1980s, the relaxation of state market controls, increasing disposable incomes, and growing official acceptance of shark fin consumption led to a dramatic increase in domestic demand. The wider growth of Asian demand and the opening of China as a seemingly unlimited market for shark fin were accompanied by significant increases in world prices during the late 1980s and early 1990s (Rose 1996: 49–50).

A number of new developments occurred in the shark fin trade in Indonesia as a consequence. Centred largely in Ujung Pandang, new entrepreneurs entered the trade in the late 1980s, which led to increasing competition and a more directed shark fishery in places like Pepela. ^[4] Before 1989 there were no permanent traders living in Pepela. Visiting traders from Ba'a on Roti Island or Kupang in West Timor came across to Pepela during the fishing season to purchase various marine products. In addition, like the Bajo, the Pepela fishermen usually sold their catch directly to traders in Ba'a, Kupang, Ujung Pandang or Bau Bau. In 1989 the first of a number of wholesalers established a permanent direct trade in marine products in Pepela. This was a Hong Kong wholesaler who began a partnership with a member of one of the wealthier Pepelan families. He was followed by a trader from Ujung Pandang operating out of Kupang, who placed his own buyers in Pepela. The large-scale traders provided capital to their buyers in Pepela, who in turn supplied provisions and fishing materials for shark fishing trips, as well as cash to the fishermen on credit. The fishermen were then obliged to sell their shark fin catch to that buyer at the price offered and also to pay off the cost of provisioning. This was the commencement of the cycle of Bajo local indebtedness in Pepela. One of the traders also began to acquire his own fleet of perahu lambo which he loaned to fishermen in order to undertake shark fishing voyages. By 1994, the operation of at least four traders based permanently in Pepela reflected the rising demand for shark fin and its availability in the Timor Sea.

The migration of Bajo to Pepela also began around 1989. In the first wave of migration some Bajo men arrived in Pepela without their own vessels. After using boats owned by Pepelans, and sharing the profits with the owners, they embarked on a number of fishing trips on their own boats during the next fishing season. While some slept on their boats, others found temporary accommodation in the village. In the following year, more Bajo arrived, either with or without perahu, but they were accompanied by their families. Between 1990 and 1992 many of them lived in the main part of the village. They either rented or built small houses and shelters close to the losmen (guest house) or next to the coconut plantations in the east — an area which came to be known as Kampung Baru (New Village). During this period many Bajo families stayed on at the end of the east monsoon fishing season instead of returning to Mola or Mantigola.

In late 1992, with increasing numbers of Bajo families arriving in Pepela, the local district government agreed to set aside the sandy beach area to the east of the main settlement specifically for the Bajo. They were allowed to establish their own kampong there in an area called Tanjung Pasir. Overcrowding in the main part of Pepela had apparently caused some problems and friction between the Bajo, the local community and local government. The settlement of Bajo was welcomed by some of the local shop owners and traders because of the economic benefits to be gained by new residents engaged in fishing and trading. Some Bajo, who had built houses in the main part of the village and in Kampung Baru, continued to live there but upgraded their dwellings. Others moved to the Tanjung along with further new arrivals from Mola and Mantigola in 1993.

The first dwelling was built on the Tanjung in November 1992 (Plate 6-2), and by June 1993 some 36 houses were established on the beach. There are no reliable figures available on the actual number of people who migrated at this time, but it has been reported that some 113 Bajo families from Mola and a number from Oenggai had migrated to Pepela by June 1993 (Fox 1998: 128). By early September 1994 there were 42 houses on the Tanjung with approximately 50 Bajo houses in all of Pepela, inhabited by at least 65 families or approximately 300 people.

The migration of some Bajo from the Tukang Besi Islands to Pepela was evidently correlated with a rise in the price of shark fin, the establishment of permanent traders in Pepela, and the development of credit relations between fishermen and traders to support shark fishing expeditions and the families of absent fishermen. These conditions attracted more and more Bajo to settle in Pepela, and meant that larger numbers of Bajo and Pepelan perahu were separately targeting shark fin in the Timor Sea.

The presence of buyers who settled in Pepela also facilitated quicker financial returns for the fishermen. Since many Bajo were now located closer to their fishing grounds, they could fish between two and four times during an east monsoon season and more frequently during the west monsoon. Although large numbers of Bajo families relocated to Pepela, some vessels and crew continued their usual pattern of voyaging from the Tukang Besi Islands to Pepela and the Timor Sea and then returning to their villages again at the end of the east monsoon. With the establishment of traders in Pepela, these Bajo fishermen were also able to obtain materials, goods and cash on credit and later sell their catch in Pepela, so they too were able to embark on more fishing trips during a season.

With this system of trade in shark fin established, the number of boats operating out of Pepela increased. In the past, most of the perahu in Pepela were owned by individual families, and only a few of the wealthier residents owned more than one. However, with good profits for existing boat owners from a number of successful fishing trips over a short period of time, local residents, including some of the traders, purchased more perahu lambo in an attempt to further increase their returns. These lambo came from various places around eastern Indonesia, particularly Southeast Sulawesi. Some Bajo from Mola and Mantigola also saw this as an opportunity to sell their perahu in Pepela. In addition, there was no shortage of available crew, particularly with large numbers of Bajo living in Pepela eager to borrow a boat. This resulted in an increase in perahu available for Bajo shark fishing voyages as part of an overall increase in the number of boats operating out of Pepela. In 1988, 38 vessels, excluding those owned by Bajo, were reported to be based in Pepela (Darling 1994). By 1993, the office of the Harbour Master recorded approximately 82 Pepela-owned vessels excluding Bajo perahu. An examination of AFZ boarding reports between 1979 and 1991 shows that all perahu crewed by Bajo were owned by Bajo. However, by early 1992 some of the vessels boarded were owned by Pepelans but crewed by Bajo.

These changes also affected the fishing patterns of other groups of Indonesian fishermen operating in the Timor Sea. The fishermen of Pepela and Oelaba had previously targeted sedentary reef products and sometimes shark in the permitted reef areas. However, the ban on fishing at Ashmore Reef increased the pressure on existing sedentary stocks at other reefs (Campbell and Wilson 1993: 180). With higher prices offered for shark fin, more and more Pepela fishermen turned to shark fishing, as did fishermen from the village of Oelaba. The first perahu from Pepela and Oelaba were apprehended for illegal shark fishing in 1993. In addition, the higher prices motivated large numbers of motorised Type 3 vessels from other parts of Indonesia to target shark illegally in the northern Arafura Sea within the AFZ.

The dramatic rise in the value of shark fin during the late 1980s and early 1990s is shown in the prices paid to the fishermen. In a survey undertaken at Ashmore Reef in 1987, Russell and Vail (1988: 89) reported that fishermen from Pepela expected to receive Rp 3 000–20 000/kg for black fin species and Rp 6 000–50 000/kg for white (lontar) fin species. Most of the 13 crews of fishermen they interviewed stated that the price of shark fin had already doubled over the previous few years. But in 1994, fishermen in Pepela were receiving Rp 10 000–150 000/kg for black fin species and Rp 60 000–175 000/kg for white fin species.

The increase in the price was not only a result of a general increase in the price of shark fin worldwide; it was also due to changes in the type of cut of black shark fin made by the fishermen. This occurred as a result of the closer relationship between fishermen and traders based in Pepela. According to the Bajo and the traders, shark fin was sold with a crude or straight cut (potong biasa) before 1993. This type of cut actually retains quite a lot of meat, is therefore heavier in weight, requires more processing, and commands a lower price. The more valuable cuts are the half moon cut (potong semi) and the full moon cut (potong full) which retain less meat and therefore weigh less (see Figure 6-1 and Table 6-1). In 1993, most of the Bajo continued to cut black fin with a crude cut as they had done for decades. However, later that year and during the 1994 season the Pepela traders instructed them how to measure fin and produce the higher quality cuts. By the height of the season in 1994 nearly all Bajo were producing either half moon cuts or full moon cuts.

Table 6-1: Example of 1994 prices for types of cuts of black shark fin in Pepela.

The 1989 amendments to the 1974 MOU came into force around the same time as these changes to the shark fin trade and Bajo voyaging patterns. This meant that a large part of the Bajo shark fishing grounds along the Sahul Shelf were now inside the 200 nm AFZ but still outside the area of the MOU box. These policy measures had their own impact on Bajo fishing technology.

Around 1991 the Bajo replaced handlines and shark rattles with a particular type of longline gear as the main gear used to catch shark. This example was quickly followed by the Pepela fishermen. The story behind the change to longline gear involves a Bajo captain and his crew from the village of Langara on Wowonii Island in the Kendari region who sailed into Pepela to sell shark fin after a successful fishing trip using longlines in the Timor Sea. A two-year period followed in which Pepela fishermen joined Bajo perahu to learn how to make and use the new type of longline gear, and this in turn contributed to the greater acceptance of Bajo people living in Pepela.

It should be noted that longline technology was not entirely new to the Bajo. Small set longlines had been used for decades (Russell and Vail 1988: 84). This type of gear, 100 m long with 5–7 large hooks, was usually set both inside and outside the reef. The difference between the two sets is that the smaller longlines were not deployed in the open ocean. The new form of longline was specifically designed to target shark found in deeper open waters.

AFS boarding reports also confirm the gradual adoption of longline gear and a gradual increase in its size. Reports from the 1980s indicate that all perahu were using handlines and shark rattles, and none of the Bajo perahu boarded in 1990 were reported to have longline gear on board. One of the Bajo perahu boarded in 1991, the Hasil Nelayan from Mola Selatan, was reported to have two sets of longlines on board, each 100 m long with 8–10 hooks, but seven of those boarded in 1992 had longlines ranging between 350 m and 1000 m in length with 50–60 hooks on each one. The six Pepelan perahu apprehended for illegal fishing in September 1993 all used longlines as the main gear.

In 1994 a standard design of longline (Figure 6-2) was in use by all Bajo shark fishermen. The dimensions of longlines differ between perahu and are dependent on personal preference, as well as the financial situation of the fishermen. A new set of longlines cost between 1 and 1.5 million rupiah in 1994, whereas shark rattles and handlines would only cost a few thousand rupiah.

The use of shark rattles and handlines was still viewed as a successful and quick method for catching sharks in shallow ‘white water’ along the northern Australian continental shelf. According to one Bajo captain:

So if the use of shark rattles and handlines was so productive why did the Bajo adopt longline gear as the main form of shark fishing gear?

The adoption of longlines was partly in response to the 1989 amendments to the 1974 MOU. Under these arrangements fishermen lost access to much of the shark fishing grounds along the shallow ‘white waters’ of the Sahul Shelf that lie outside the box area and inside Australian waters. Having lost access to shallow waters in the AFZ, the Bajo fishermen were forced into deeper waters inside the MOU box and to the north, where handlines and shark rattles were largely ineffective. They claim that longlines are used in waters at depths of 60 metres or more. Within the MOU box, there are only a few areas around Ashmore, Cartier and Browse islands which they consider to be good shark grounds that are still suitable for fishing with handlines and rattles. The adoption of longline gear was facilitated by the availability of credit, but this also created a financial strain on the fishermen, contributing to the migration of Bajo to Pepela and further economic reliance on the Pepela traders.