Indonesian Political, Business & Finance News

Ban on sand exports to Singapore gains support

| Source: JP
Ban on sand exports to Singapore gains support

M. Ara Syaf, The Jakarta Post, Pekanbaru

The central government's decision to halt the much-criticized
export of sand from Riau to Singapore has gained political
support from the provincial legislative council.

Abdul Kadir, chairman of the Riau provincial legislative
council's Commission IV on mining, said the legislature fully
supported the government's decision because, besides having
adversely affected the environment, the quarrying of sand had
only benefited Singapore and a select group of people in the
province.

"The decision was made following a great deal of criticism,
particularly from the legislative council," he said, after
presiding the meeting of the legislature's Commission IV on
environment and mining in the city on Friday.

Kadir said it was very unfair that Singapore had developed its
modern international airport and enlarged its territory using
sand from Riau, which had been bought at a cheap price.

He said that, according to his commission's field
observations, a major part of the sand supplied to the
neighboring island state was extracted without permission from
the local authorities and sold at a cheap price on the local
black market.

"Illegal sand quarrying has got out of hand because it has
been backed by unauthorized servicemen. Illegally quarried sand
has been sold at 4.5 Singapore Cents per ton to foreign brokers
on the black market," he said.

Local businessmen, who requested anonymity, said that the
illegally mined sand was supplied to the black market, which was
dominated by Singaporean, South Korean, Japanese and Hong Kong
brokers and businessmen, before being exported to Singapore.

In a coordination meeting in the city on Thursday, Riau
Governor Saleh Djasit, Minister of Trade and Industry Rini
Soewandi, Army Chief of Staff Gen. Endriartono Sutarto and Navy
Chief of Staff Admiral Indroko Sastrowiryono and local
businesspeople agreed to stop sand-mining and its export to
Singapore, because it did not benefit the nation.

The meeting was held following sharp criticism of the
extensive sand quarrying that is going on in Riau's waters, which
does not benefit locals and further deteriorates the local marine
environment.

Governor Saleh Djasit hailed the agreement and said he would
order the local police to enforce it.

"All permits issued for the export of sand will be retracted
and the police will be instructed to help stop sand quarrying in
Riau's waters," he said after the meeting.

Djasit said the ban on sand exports was, for the time being,
to give an opportunity for the government to make rearrangements
in the sector.

He conceded the sand exports did not bring any financial
benefit, either to the province or to local people living along
the coast.

"The provincial administration only earns S$1 from each ton of
sand exported because it has been unable to control the export as
a major part of the sand exported to Singapore has been mined
without any permit from the local administration," he said,
citing the sand was sold at between $8 and $12 per ton.

He said that sand mining had caused the serious deterioration
of the marine environment, which had affected the livelihoods of
more than two million fishermen living along the province's
coastal areas.

The local police have encountered difficulties in putting an
end to the illegal sand business, because it has been backed by
unauthorized servicemen, which is why the Army and Navy chiefs
were present at the coordination meeting.

According to the governor, the illegal sand business began
during the 1980s and has caused Rp 2.5 trillion in material
losses to the provincial administration.

Minister Rini Soewandi concurred and said the sand export ban
is aimed not only at revamping the mining sector but also at
improving the government's bargaining power.

According to her, the export of sand had solely benefited the
importer, which had affected the nation's dignity because the
exported sand was sold at such a low price that it did not cover
all the material and environmental costs that Riau has had to
bear.

"Singapore has rapidly expanded its territory thanks to sand
exported from Indonesia but Riau remains in a poor condition,"
she said.

Without having any intention to interfere in Riau's internal
affairs, the minister said the province should revise its sand
exports to enable the sector to maximize benefits for locals.
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