Environmental group says financial losses five times profit from sand sea exports

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Kontan – September 16, 2024
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Heavy machinery dredging sand for reclamation project in Batam, Riau Islands – October 8, 2022 (Antara)
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Arif Ferdianto, Jakarta – The Indonesian Forum for the Environment (Walhi) believes that the government's decision to reopen the tap of sand sea mining will bring with it financial losses for the state.

Walhi campaign and small islands manager Parid Ridwanuddin revealed that the profits obtained from sea sand exports were not comparable to the costs that will be needed to restore ecosystems.

Based on a study by Walhi in 2017, the cost of restoring ecosystems from the impact of sea sand mining can be as high as five times the profits obtained from the export of sand.

"For example, if profits from sea sand exports reaches 1 billion rupiah, then the recovery costs required will be 5 billion rupiah. If profits reach 10 trillion rupiah, then the recovery costs will be as high as 50 trillion rupiah. So, if we calculate this honestly, the country is actually experiencing a financial loss", Parid emphasised when speaking to Kontan.co.id on Monday September 16.

In addition to this, Walhi is also concerned that the decision to allow sea sand exports could lead to the loss of several small islands in Indonesia.

Ridwanuddin said that there are already several small islands that have disappeared as a consequence of sand sea exploitation including in Bangka Belitung, South Sumatra and Yogyakarta province.

"This is a setback in marine resource governance. We from Walhi actually propose that the government stop or even revoke the regulation", he said.

The decision on sea sand exports resurfaced after the Ministry of Trade (Kemendag) issued Minister of Trade Regulation (Permendag) Number 20/2024 on the Second Amendment to Permendag Number 22/2023 on Goods Prohibited from Export, as well as Permendag Number 21/2024 on the Second Amendment to Permendag Number 23/2023 on Strengthening Export Policies.

In Government Regulation (PP) Number 26/2023 on the Results of Sea Sedimentation Management, it states that there are seven locations that can be utilised for sea sand mining activities, namely:

  • The Java Sea: Demak (Central Java), Surabaya (East Java), Cirebon (West Java), Indramayu (West Java) and Karawang (West Java).
  • The Makassar Strait: The waters off Kutai Kartanegara and Balikpapan city (East Kalimantan).
  • The Natuna Sea in North Natuna: The waters around Karmun Island, Lingga Island and Bintan Island (Riau Islands).

[Translated by James Balowski. The original title of the article was " Keran Ekspor Pasir Laut, Walhi: Kerugiannya Tak Sebanding dengan Untung yang Didapat".]

Source: https://nasional.kontan.co.id/news/keran-ekspor-pasir-laut-walhi-kerugiannya-tak-sebanding-dengan-untung-yang-didapat

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