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.