Govt sets new price for sand exports

Govt sets new price for sand exports

The Jakarta Post, Jakarta

The government announced on Monday a new export price for sand
from Riau province: US$3 per cubic meter, double the current $1.5
price level.

Minister of Trade and Industry Rini M. Soewandi said that the
new price level, effective as of Oct. 1, would be valid for three
months.

"The new export price of sand will be $3 starting Oct.1 and
will be effective for three months," Rini told reporters.

She did not elaborate.

Sand from Riau has been exported to Singapore to support the
island state's coastal reclamation project.

Sand exports have sparked protests from many parties,
including legislators, who say that they only cause losses to
both the local and central governments.

Uncontrolled sand mining in the coastal areas of Riau has
caused severe environmental damage, leading to the disappearance
of a number of small islets in the province.

The central government has launched several efforts to ban
sand exports and curb illegal sand mining in Riau.

President Megawati Soekarnoputri has established a special
team to help seek ways of limiting the negative impact of sand
mining on the marine environment.

The team, which is led by Minister of Maritime Affairs and
Fisheries Rokhmin Dahuri, consists of several ministers and top
military officials.

Rokhmin earlier said that some 300 million cubic meters of
sand was being smuggled out of the country every year.

Rokhmin previously issued a decree on a zoning mechanism to
help reduce the number of areas where sand can be mined.

Under the zoning mechanism, some 50 percent of existing sand
mining areas will be put off-limits to mining operations.

Rini has also issued a decree restricting sand exports over
the next three months until late December to 26 million cubic
meters.

Under the decree, if the limit is exceeded before the end of
December, the government will impose a temporary export ban.

Singapore is estimated to require some 1.8 billion cubic
meters of sand over the next eight years for its land reclamation
work. Riau has been exporting sand to Singapore for many years.