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July 13, 2023

Revival of Sand Exports

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July 13, 2023

After Government Regulation (PP) No. 26 of 2023 which allows sea sand export was issued, Ministry of Marine and Fisheries Affairs (MMFA) is now drafting the technical regulations for sand dredging locations and the responsibilities of relevant ministries including the Energy and Mineral Resources Ministry and Transportation Ministry. Among those, the Ministry of Energy and Mineral Resources will grant permits to enterprises interested in collecting and exporting marine sediments.

Although the technical regulation is still being drafted, MMFA issued Decree No. 82 of 2021. This  Decree sets the price of sea sand for domestic use at $ 12.38 per cubic meter, while sea sand for export is priced at IDR 18.96 per cubic meter. Singapore, the largest importer of Indonesian sea sediments prior to the ban, renewed its sediment trade with Indonesia to complete the construction of Tuas Mega Port. Upon its completion in 2040, Tuas will be the world’s largest container port.

Indonesian Forum for the Environment (Walhi) and former Marine and Fisheries Affairs Minister Susi Pudjiastuti stated that sand export will accelerate environmental harm in areas like Riau. In 2003, the government initially banned sedimentation product trading due to concerns about illegal shipments and environmental contamination. In response, Minister of Energy and Mineral Resources, Arifin Tasrif has counter-stated that the project aims to preserve the sea lanes and marine conservation.

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