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.