The relationship of transaction costs and rent seeking in capture fisheries

The capture fisheries sector in Indonesia is expected to have a major contribution to national income. The contribution of capture fisheries to state revenue was U$ 29.44 million compared to the acquisition value of fish production reached U$ 9.67 billion in 2018. Indonesia a rich country of fish in the world suffers from low income from capture fisheries whose value is only 0.25% of the total national income of natural resources and economic leakage of an average US $552.16 billion over the last twelve years. The low state revenue and economic leakage in the capture fisheries sector are suspected to be a result of rent-seeking behavior. For predicting rent-seeking behavior, this research applied the transaction costs economy approach. The study aims to reveal the relationship between transactions, transaction costs, and rents seeking in capture fisheries. The research used SEM (structural equation model) constructed from measured variables (observed) and latent variables (unobserved). Respondents came from 49 government agents (63%), 5 politicians (6%), and 24 people (31%) collected via electronic mail from September to October 2021. The results of this study show that transaction costs have an impact on rent-seeking in the capture fisheries sector. Of all the estimated variables, there is a significant relationship at the significance level of 0.05 and 0.000 (p = £ 0.05).