Fadli, The Jakarta Post, Batam
Sand exporters from the Riau Islands have shown dissatisfaction with the government's decision to band sand exports.
The decision will damage the islands' sand mining industry, which relies heavily on exporting its product, Riau Sand Exporting Businesspeople Association's general secretary, Syahrul Jamal, told The Jakarta Post.
At least 300,000 cubic meters of sand from Batam, Bintan, Karimun and Lingga would no longer be exported on a monthly basis to Singapore, the Riau Islands' main market, he said.
He said the quantity of exported sand was greater than local demand, which was around 100,000 cubic meters a month. For the 32 existing sand-exploration businesses operating on the island chain, Singapore is more appealing than domestic markets, he said.
"In terms of pricing and payment, exporting sand brings in more profits. It's easier to collect money from Singapore than from local buyers. Here, collecting money can be extremely difficult and lead to disputes," Syahrul said.
Singaporean buyers pay around S$9 (Rp51,300) for one cubic meter of sand, whereas local buyers pay around Rp 90,000, he said.
However, Singaporean buyers purchase the sand on the spot, pay in cash and organize transportation. When dealing with domestic buyers, Syahrul said, sellers are responsible for all aspects of the transaction.
Often, he said, retailers who purchase sand take three months to pay for the product.
"We'll analyze the policy among our members once more as we were just informed of it. The policy is political in nature and does not consider the economic impact it will have," Syahrul said.
Trade Minister Mari E. Pangestu said the export ban was imposed to promote environmental protection. The exporters have until Jan. 23 to begin winding up exports and until Feb. 5 before all transactions must be finalized.
Singapore's Building and Construction Authority (BCA) said the decision was unfortunate, but that it would not slow the nation's resurgent construction industry.
There have been ongoing efforts to diversify the sources of Singapore's basic construction materials, AFP reported.
Syahrul said the new policy would reduce the production capacity of the Riau Islands' 32 sand mining companies. It could also hurt up to 3,000 workers, whose incomes depend on sand mining.
He said sand mining causes less environmental harm than other mining activities. It requires the use of about 50 hectares over three years, while other mining activities, such as coal and granite mining, usually require some 5,000 ha for use over 15 years.
"In terms of the environment, there are other much more harmful activities. We've committed S$3 from each exported cubic meter of sand toward environmental conservation," Syahrul said.
Meanwhile, Riau Islands Governor Ismeth Abdullah said he understood the central government's reasons for the ban. He said, however, many unskilled laborers employed by sand mining companies would be disadvantaged.
"We support the central government's new policy and can understand the reason why it was made," he said.
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