Riau sand exports taking a toll on environment, activists say

Riau sand exports taking a toll on environment, activists say

By Haidir Anwar

PEKANBARU, Riau (JP): For years environmentalist have been
fighting a mostly losing battle against sand quarrying for export
to Singapore. But the regional autonomy law which went into
effect on Jan. 1 this year delivered the hardest blow of all in
the archipelagic province.

With autonomy, the Riau provincial administration took over
from Jakarta the control of licensing for sand quarrying;
Governor Saleh Djasit issued sand quarrying licenses in March for
18 companies exporting to Singapore.

"This practice is rapidly damaging marine ecosystems," said
chairman of the Indonesian Center for Forestry Studies Andreas
Herry Khahurifan.

The organization's latest investigation revealed that in some
parts the seabed has been dug to a depth of as much as 12 meters.
It also found that a total of 400,000 hectares of seabed and
extensive area of coral reefs are now damaged.

Another threat in store for Riau due to sand quarrying is
erosion that may eventually lead to the disappearance of small
islands in the Strait of Malacca.

According to Andreas, the administration would need at least
Rp 7 billion to reclaim and rehabilitate an area of 1 square km
of seabed.

"The money earned by the central and local administration by
exporting our sand is peanuts compared to the money that would be
needed to save the environment," he said. "Besides, it would take
the marine ecosystem at least 30 years to heal.

"We are protesting the Riau administration's decision to issue
those licenses. We have been protesting but the administration
keeps on ignoring us."

He added that there is rampant illegal sand quarrying as many
people want to take part in the lucrative sand export business.

"Even the Riau administration has never been able to eradicate
illegal sand quarrying because some Navy officers are allegedly
involved in the business," Andreas said.

Provincial legislator Andi Anhar Chalid raised the same
objection to sand quarrying in the Riau Islands regency. He said
the regency would not gain anything from sand quarrying as it is
carried out some four miles off shore -- which is beyond the
regency's jurisdiction.

"Only the provincial administration can make money from the
licensing," he said. "Besides, this business is also threatening
the livelihood of thousands of farmers. It has to stop."

Capital

The sand quarrying is both easy and virtually without risk to
those involved. All they need to do is secure a license from the
Riau provincial administration, hire a dredger from neighboring
Singapore, quarry the sand and sell it to contractors in
Singapore.

What's strange is that the Riau provincial administration, for
reasons which are unclear, cannot do business directly with
Singaporean buyers. Only contractors in Singapore have the
authority to set the price of each cubic of sand.

For instance, each cubic meter of sand delivered directly to
Singapore is priced at S$7, while mid-sea transactions come to
S$4. The businesspeople get a profit of up to S$3 for each cubic
meter of sand sold, while the Riau provincial administration gets
S$1.

Each dredger digs out from Indonesian waters as much as 6,000
cubic meters of sand every day.

Why are the Singaporean buyers able to name their own prices?

Economist Victor Butarbutar blamed it on collusion and said
some of the companies granted licenses by the Riau provincial
administration have the capital backing of Singaporean
contractors.

Illegal quarrying has caused the prices to fluctuate.

"The Riau provincial administration and the sand quarrying
businessmen should sit together and come up with integrated trade
activity," Butarbutar said. "Companies should be barred from
having direct trade on their own with Singapore ... "

Singapore has been estimated to need 1.5 billion cubic meters
of sand each year for land reclamation to accommodate its
population growth, according to Andreas.

He added that small islands which use the Indonesian sand
include Jurong Island which needs a total of 213.6 million cubic
meters of sand. Other islands, such as Western Jurong Island,
need 900 million cubic meters of sand, Tuas needs 40 million
cubic meters, Northeastern Island 200 million cubic meters and
Southern Island Sentosa Isi 15 million cubic meters.

There are other small islands that also need sand from Riau,
including Pungdol that needs 10 million cubic meters and Pasir
Panjang which needs 150 million cubic meters.

"Imagine, this business can mean the enlargement of Singapore
and the reduction of our own Riau," Andreas said.

Legacy

The provincial administration acknowledges that sand
quarrying, both legal and illegal, has been running out of
control but argues the mess is a legacy of the period before the
regional autonomy policy.

Head of mines in the Riau administration Amzar Anwar said none
of the 18 companies recently granted licenses to quarry have
started operations, pending the formation of a supervisory team.
The team will involve the Navy, the Riau port authority and a
marine patrol department, he said.

"We have only been given control over licensing of sand
quarrying, and the first thing we did was preparing for the
formation of the supervisory team," Amzar said. "It's public
knowledge that (before the regional autonomy policy) there was
rampant illegal sand quarrying."

According to Amzar, a number of rules have been established,
including that sand quarrying companies are not to exploit areas
beyond the designated regions. He insisted the Riau
administration was aware of the importance of environmental
protection when issuing the licenses.

"We will choose only areas without coral reefs, and will make
sure that the sand quarrying will not disturb fishermen's
activities," he promised. "If the activity goes as planned, the
Riau provincial administration will earn 25 percent of the price
of every ton of sand exported to Singapore."

Amzar asserted the central government still reserves the right
to collect Rp 15,000 as "exploration fee", as well as Rp 25,000
in an "exploitation fee" for every hectare of sand dug out of the
Riau seabed.

"This practice is against the regional autonomy policy," Amzar
said. "We are calling on Jakarta to stop meddling in the sea sand
business here."