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."