Fadli, The Jakarta Post 26 Dec 07;
A ban on sea sand exports came into force in 2002 during former president Megawati Soekarnoputri's administration. It was followed by a ban on land sand this year.
A number of regencies in Riau Islands province, by far the biggest sand supplier to Singapore, were severely affected by the loss of revenue, and unemployment levels rose.
The Ministry of Trade imposed the ban on sand, earth and topsoil exports early this year. Many believed the move was motivated by unsettled border issues between the countries and by a desire to accelerate extradition treaty talks. Many of the country's corruption suspects are reported to be harboring in Singapore.
Based on data derived from the Riau Sand Exporters' Association (Hipepari), the quota for concreting land sand exports from Riau Islands to Singapore amounted to 300,000 tons monthly, sold at about US$6.16 per cubic meter. The price nearly tripled close to the start of the ban.
By comparison the local demand for sand was only 100,000 cubic meters monthly at a price of Rp 90,000 (US$9.54) per cubic meter at the consumer level.
Sand businessmen were reluctant to focus on the local sand business. They made more money selling to Singapore, since the transactions were done in cash and the transportation was arranged by the Singaporean buyers.
Hipepari chairman Ficky Zulfikar Zaljuli said his group's member companies felt they had been used as pawns in Indonesia's foreign diplomatic policy.
"What kind of political diplomacy is this? If the government really wants to regulate land sand exports in order to protect the environment, it should have done it in a more educational manner, and not shut off people's means of making a living," said Zulfikar.
Based on Hipepari data, at least 30 land sand exporters, employing 3,600 workers, were forced to shut down.
"The provincial administration itself is ambiguous in its stance on the ban. Sand businessmen and workers are the hardest hit by the policy. We certainly hope the government will review the policy," said Ficky.
"Thousands of people seek livelihoods from land sand quarrying, especially when it creates jobs in the informal sector. This is a fact that cannot be denied," added Ficky, saying land sand exports to Singapore had been going on since the 1980s.
During President Susilo Bambang Yudhoyono's visit to Natuna regency in Riau Islands province on Nov. 17 last year, he raised concerns about land sand mining activities in the province.
The President demanded that the provincial administration curb sand quarries, and the administration responded by asking the customs and excise office to stop issuing permits for land sand export.
Sand exports to Singapore virtually came to a stop, albeit temporarily, on Nov. 26, 2006.
The protests of sand companies were eventually heeded and sand supplies to Singapore resumed.
However, they were stopped altogether following the trade ministry's decree.
Director General of Overseas Trade Diah Maulida expressed confusion over the provincial administration's opposition to the move in a meeting with sand companies in Batam in January.
After all, Diah pointed out, the governor had sent a letter to Vice President Jusuf Kalla in November of last year urging the government to halt sand exports.
"We at the Trade Ministry are unclear over the provincial administration's stance because there are two conflicting letters. But we want every party to understand the decision because it comes from a team consisting of several ministries," Diah said at the meeting.
Industry members were puzzled by the government's decision. On one hand the provincial administration was determined to respond to the president's demand, while on the other it wanted to appease the people.
According to Ficky, it would be more better to shut off granite supplies to Singapore if the goal was curtailing the city-state's land reclamation projects, because granite is used more for reclamation. Riau Islands is also the main supplier of granite to Singapore.
Ficky said that if the government reopened land sand exports, sand exporters would take certain steps, such as setting a price of at least US$20 per cubic meter and setting a percentage aside for environmental restoration.
The sand quarrying activities have damaged the environment by creating giant cavities. When it rains, these holes act as ponds and become breeding grounds for mosquitoes, which can carry diseases such as malaria and dengue fever.
Sand companies as well as the government have not been serious about curbing environmental destruction in the province. Each of them have reaped the benefits of sand mining but left the damage for others to deal with.
