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Indonesia’s decision to resume sea sand exports after a 20-year ban has been criticized for prioritizing economic profits over environmental concerns.

After a 20-year ban, Indonesia has reopened the door to sea sand exports, spearheaded by Trade Minister Zulkifli Hasan, by revising two key trade regulations. These amendments—Permendag No. 20 and Permendag No. 21—were issued on August 29, 2024, and are set to take effect 30 working days after their issuance.

The regulations allow for sea sand exports, provided domestic needs for reclamation and infrastructure development are met. This decision aligns with Government Regulation No. 26 of 2023, ratified by outgoing President Joko Widodo, which emphasizes marine sediment management to leverage the economic potential of sand.

However, the government’s move has sparked widespread criticism. Environmental advocates argue that the policy prioritizes short-term profit at the expense of marine ecosystems, local fisheries, and the livelihoods of coastal communities. President Widodo has attempted to deflect these concerns, framing the exports as a solution to sedimentation issues that impede shipping traffic. But the reality appears more commercially driven, with the influence of oligarchs and business interests quietly steering the decision to reopen sea sand exports.

Pahawang Island, Indonesia
Pahawang Island, Indonesia. (Fidelia Zheng)

In the lead-up to this decision, the Ministry of Maritime Affairs and Fisheries (KKP) had already received applications from 71 companies eager to mine sea sand. Of these, 66 passed the government’s verification process. The KKP’s meticulous planning also paired these mining companies with 51 sea sand dredging firms and 54 reclamation buyers—most of whom come from countries like Malaysia, Japan, Singapore, and China. All of this groundwork was laid before the export regulations were even formalized, raising doubts about the true motivations behind the government’s actions.

Critics of the policy point to former President Megawati Soekarnoputri’s 2002 ban on sea sand exports, enacted to protect vulnerable coastal ecosystems and prevent small islands, particularly in the Riau Archipelago, from sinking. Indonesia’s primary customer for sand has long been Singapore, a country heavily reliant on sea sand for its territorial expansion via land reclamation. Yet, despite supplying the majority of Singapore’s sand, Indonesia has historically gained little economic benefit. The low price of sea sand has often been seen as insufficient to offset the environmental damage it causes.

Environmental degradation from sand mining has already had severe consequences. In the early 2000s, the over-extraction of sand for Singapore nearly caused the sinking of Nipa Island, an Indonesian territory near Batam that marks the border with Singapore. This situation underscored the sovereignty concerns tied to sea sand exports.

Fast-forward to 2007, when President Susilo Bambang Yudhoyono (SBY) reinforced the ban, causing friction with Singapore. Singapore accused Indonesia of leveraging the ban to push for negotiations on extradition agreements and border delineations. Indonesia countered, claiming that the ban was driven purely by environmental concerns.

These concerns are far from trivial. Beyond the sinking of islands and disruption of marine currents, the environmental damage from sea sand mining includes coastal erosion, water pollution, and the destruction of traditional fishing grounds. The extraction process stirs pollutants, contaminating surrounding waters and disrupting the delicate balance of marine ecosystems. This includes damage to coral reefs, essential habitats for aquatic life, and a decline in fish populations—devastating for the fishermen who rely on them for their livelihoods. As fishing grounds are destroyed, many coastal communities face financial collapse, as fishermen are forced to travel further out to sea without guaranteeing a profitable catch.

The government, however, insists that the profits from sea sand exports are too significant to ignore. Based on government regulations, the pricing structure sets the domestic price at $6 per cubic meter and the export price at $12 per cubic meter. The Ministry of Maritime Affairs and Fisheries estimates that exporting 3.3 billion cubic meters of sea sand could generate a staggering $39.6 billion for the country. Moreover, with a total estimated sand reserve of 17.64 billion cubic meters, Indonesia’s potential earnings could skyrocket even further as international demand grows.

This decision to reauthorize sea sand exports marks a significant policy shift under President Widodo, one that echoes the geopolitical and environmental complexities faced by his predecessors. It may appear as an economic opportunity, but beneath lies a delicate balancing act between short-term capital gains and the long-term sustainability of Indonesia’s environment and sovereignty.

For Indonesia, the stakes are high. Will the pursuit of profit come at the expense of environmental health and national sovereignty, or can the government strike a balance that preserves the country’s natural heritage for future generations? The answer remains to be seen, but the consequences will be far-reaching.

Mohan M.R.T. Eteng Sitorus is an undergraduate International Relations student at Universitas Gadjah Mada, Indonesia, with a focus on global diplomacy, geopolitical strategies, and international organizations. He is passionate about analyzing how nations collaborate and compete on issues like security, trade, and climate change. Mohan expands his knowledge through intensive research and publishing his insights, aiming to foster discussions among fellow international relations enthusiasts.