Government to issue Inpres to regulate sand quarrying

Government to issue Inpres to regulate sand quarrying

Leo Wahyudi S, The Jakarta Post, Jakarta

The government is close to issuing a presidential instruction
to regulate rampant sand quarrying, which would prevent further
environmental degradation and bring to a halt annual estimated
losses of over Rp 2 trillion in illegal sand exports.

The new presidential instruction, which is expected to be
issued this week, is primarily aimed at curbing sand mining in
Riau province.

Concerns about environmentally sustainable practices was a
factor in issuing the new instruction. At least 14 of 71
authorized mining companies on the Riau coastline reportedly
failed their Environmental Impact Analysis (EIA).

Nevertheless, profit was also a strong motive.

Minister of Marine Affairs and Fisheries Rokhmin Dahuri
claimed here on Wednesday that up to 300 million cubic meters of
sand was being smuggled out of the country every year.

Though the minister did not mention the destination in
question, it is widely reputed to be Singapore.

According to reports, smuggled sand was sold at about S$1.5
per cubic meter, far below the official market rate of S$15.

Rokhmin said, based on these rough estimates, every year more
than Rp 2 trillion of sand was being smuggled out.

"With the presidential instruction we can implement a tight
monitoring system," Rokhmin said.

He would not go into detail on the presidential instruction,
saying only that it would better regulate these activities and
allow the government to monitor and directly tap into the profits
of the sand business.

PT Surveyor Indonesia, which is partly owned by the
government, would be charged with the main monitoring task
through a Vessels Monitoring System (VMS).

Judianto Hasan, head of the company's survey division,
highlighted the economic potential in sand exports.

Singapore, alone, is estimated to need 1.8 billion cubic
meters of sand in the next eight years for land reclamation at
eight locations around the island state.

"Between 80 percent and 85 percent of land reclamation in
Singapore uses our sand," Rokhmin boasted.

Demand is expected to increase further with more reclamation
projects already announced in Malaysia.

Rokhmin hinted that tighter control of sand exports would help
raise Indonesia's bargaining position in this market.