Title: Bio-economic model and technical efficiency analysis for FAD-associated tuna fishery in Kendari fishing port - Indonesia.

The tuna fishery is the most important and by far the predominant fishery in Indonesia. In 2013, total harvests amounted to 1.2 million tons, with a total value of 1.8 billion US dollars. One of the biggest tuna fisheries landing is Kendari fishing port which is in South East Sulawesi – Indonesia with yearly average tuna production of more than 20 thousand tons. The tuna fishing fleet in Kendari use FAD (Fish Aggregating Devices) as an auxiliary fishing gear. FAD management is major issues in Indonesian tuna fisheries, extensive investment on FAD has led to increase of the juvenile and by catch and social problems because of the competition. Two analyses were done during this study, bio-economic and technical efficiency analysis. Bio economic analysis result show that the FAD associated tuna fishery still on a good shape around the MEY level and profitable, this explain the reason behind the extensive investment in new FAD. Mean value technical efficiency was 0.534. Purse seine show the highest mean value compare to other fishing gear. All the variables input show positive relationship to the catch except the days at sea variables, this is a signal that the increasing the number of FAD has made the fisherman spend more time at sea it will decrease the technical efficiency. The results support the FAD regulation done by the government of Indonesia, there is need for strong regulation to regulate the FAD, so the fisheries continue to provide the optimum benefit from the resources.