Indonesia mulling over granite export ban

The Straits Times, March 13, 2007
By Azhar Ghani, Indonesia Bureau Chief


Indonesia mulling over granite export ban
Discussions into the possibility of such a move are ongoing, say two ministers

JAKARTA - INDONESIA is considering a ban on granite exports, just a month after imposing one on sand.

If the country decides on a ban, Singapore, which imports most of its granite aggregate - about 10 million tonnes a year - from there, will be hit.

Two Cabinet members - Foreign Minister Hassan Wirajuda and Environment Minister Rachmat Witoelar - have confirmed that a ban has been considered.

Mr Wirajuda said yesterday that 'discussions on the possibility of banning exports of granite chips are ongoing'.

'It is our right as a sovereign nation to ban sand exports for the sake of environmental protection,' he added.

Mr Rachmat was quoted in the Jakarta Post as saying that his ministry was studying if an export ban on granite was needed.

'We haven't banned the exports yet, but we must limit any exports of natural resources if our environment is being damaged by the mining of these resources,' he said.

Several Singapore-bound barges bearing granite were detained by the Indonesian navy recently. Navy officials reportedly said that these had to do with the interdiction of contraband sand hidden in the granite shipments.

But the navy has since added to the calls for a ban, claiming that granite mining has led to environmental degradation in areas such as the Bintan and Karimun islands.

Western Fleet commander Rear-Admiral Muyono told Antara news agency: 'If the impact is similar (to sand mining), we should also impose similar regulations on granite.'

His subordinate, Tanjung Pinang base commander First Marshall Among Margono, also confirmed that discussions were under way on a ban, with the Energy and Mineral Resources Ministry studying the tolerable limits of granite mining and the Trade Ministry doing a cost-benefit analysis of granite exports.

Confusion has surrounded Indonesia's recent actions on the export of building materials. When it first banned sand exports on Feb 6, the official word was that it was to protect the country's environment and maritime borders.

But soon after, several Indonesian officials said publicly that the move was taken to pressure Singapore into quickly concluding an extradition treaty and resolving issues related to border demarcations and a defence pact.

Then came the detention of granite-bearing barges, which raised concerns about an impending stop to granite exports. Dr Hassan and Trade Minister Mari Pangestu initially told Singapore that there was no ban on granite exports and that they would check why the barges were detained.

But Mr Rachmat was quoted by the Batam Pos last week as saying that a granite ban had been approved at Cabinet level and would take effect soon - only to deny this later.

The inconsistencies prompted Singapore's Foreign Affairs Ministry to seek a clarification at a meeting yesterday with Indonesian charge d'affaires Andradjati on what Mr Rachmat meant by his remarks.

Meanwhile, the Governor of Indonesia's Riau Islands province, Mr Ismeth Abdullah, has expressed opposition to a ban, saying the province was already hurting from the loss of revenue from the sand ban.

In Singapore, the Government has moved to seek alternative sources of granite. The detention of barges carrying granite to Singapore has led it to release granite chips from its stockpile to ensure a steady supply of the material, which is used in making concrete.

Asked about the impact of any granite ban, Singapore Contractors Association president Desmond Hill said: 'It all depends on how big the Goverment's granite stockpile is and how fast we can get alternative supplies.'

There has been no problem in getting supplies, he said, but added that rising costs are a source of concern.


WITH ADDITIONAL INFORMATION FROM TAN HUI YEE IN SINGAPORE AND REUTERS