Purpose: This paper aims to study the fishing capacity of the shrimp trawlers in the Aru and Arafura Sea. Research design, data and Methodology: The abundant shrimp resources call for its sustainable use to advance economic activity. Time-series data of effort and catch from shrimp trawlers from 1980-2015 were utilized. The technical efficiencies of the vessels and the target capacity of the shrimp fishery were estimated using Peak to Peak Method. Results: Arafura's shrimp fishery presents high technical efficiency, which is suggested by the high scores of its fishing capacity utilization. The issuance of a ministerial decree on the prohibition of the use of trawls has impacted the plummeting of Arafura's shrimp trawler production right after the regulation implemented in 2015, which is far below the total production of the Arafura's shrimp trawler in 1980. Today, the Aru and Arafura Sea has different sets of fishing gears that are dominated by Squid Jigging and gillnet vessels. Conclusions: Arafura shrimp fishery performs high technical efficiency, which is indicated by the high utilization value of its catching capacity ranging from 71% to 100% annually from 1980 to 2015 This has shown that the resource-utilization has shifted from shrimps to other economically important species during the post trawl ban such as squid and pelagic. Any future intention to utilize shrimp resources, interaction of gears harvesting shrimp with current gears should be well considered in the policy making process.
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