Sand export suspension effective Feb. 15

Sand export suspension effective Feb. 15

Adianto P. Simamora, The Jakarta Post, Jakarta

A ban on sand exports from Riau to Singapore, aimed at curbing
illegal sand quarrying that has seriously damaged the province's
marine environment, will come into effect on Feb. 15, a senior
official at the Ministry of Industry and Trade said on Saturday.

Director General of Foreign Trade Sudar SA, said the Ministry
would issue a decree this week stipulating the ban.

Under the decree, he said, sea sand exports from Riau to
Singapore would be banned until there is a mechanism to improve
sand quarrying and exports in the province.

"This is one of the points agreed upon in the memorandum of
understanding (MoU) signed on Thursday in Riau," he told The
Jakarta Post.

He was referring to an MoU signed by Minister of Trade and
Industry Rini M. Soewandi, Riau Governor Saleh Djasit, a member
of the House of Representative and a member of the Riau
Legislative Council after studying and inspecting the real
condition of the much-criticized sand quarrying activities in the
Riau.

During her visit to Riau, Rini was accompanied by Army Chief
of Staff Endriartono Sutarto and Navy Chief of Staff Indroko
Sastrowiryono.

The MoU also stated that there would be a special team
comprising officials both from the central and local government
which would set up mechanisms to improve sand quarrying and
export activities in the province.

Sudar said the length of the ban would depend on how quick the
team were able to set up the mechanism.

Riau, the country's main sand exporter, has been exporting
sand to Singapore for many years to support the city state's
construction sector and coastal reclamation projects.

However, said Sudar, the price of Indonesian sand in Singapore
has been steadily declining over the years as the market has been
flooded with sand from illegal miners.

The sand today costs about S$1.4 to S$1.6 per cubic meter
compared with the previous prices of about S$15 and S$16 per
cubic meter, according to Sudar.

Governor Saleh also conceded the sand exports did not bring
any financial benefit, either to the province or to the local
people living along the province's coast.

"The provincial administration only earns S$1 from each ton of
sand exported because it has been unable to control its export. A
major part of the sand exported to Singapore has been extracted
without any permits from the local administration," he said,
citing the sand was sold at between S$8 and S$12 per ton.

Saleh said that illegal sand quarrying began in the 1980s and
has caused Rp 2.5 trillion in material losses to the provincial
administration.