Despite the importance of the fisheries sector to national welfare in Indonesia, most fishers are small-scale producers who are among the poorest of the poor in Indonesian society. Foremost among the reasons for this poverty is overfishing in key fishing grounds off Java, Sumatra, and Sulawesi.4 Clear evidence of resource limitations notwithstanding, however, during the past two decades the Indonesian government has made a series of conscious policy decisions to encourage development of a modern and, by Indonesian standards, capital-intensive fishing industry. This article elucidates the rationale behind these national policies and provides an assessment of the role of international development agencies in influencing and supporting them.