The Sunday Times, March 4, 2007
Indonesia says there's no granite export ban: Mah
Govt will take action to ensure that projects are not disrupted
By Peh Shing Huei
INDONESIA has informed Singapore that there is no export ban on granite, National Development Minister Mah Bow Tan disclosed yesterday.
However, the Government is watching the situation closely and will take all necessary measures to ensure there is no disruption to construction activities here, he assured Parliament.
Both Foreign Minister George Yeo and Trade and Industry Minister Lim Hng Kiang contacted their Indonesian counterparts to ask why barges transporting granite materials have been detained on their way here.
Mr Mah revealed that Indonesian Foreign Minister Hassan Wirajuda and Trade Minister Mari Pangestu had the same response: There is no ban on granite shipments. Both will also check on the reasons for the detention of the barges, which has caused a disruption in supply here.
In the past week, the Indonesian authorities have stepped up checks on barges carrying granite, reportedly detaining 13 for allegedly trying to smuggle sand into Singapore.
Granite dust and aggregates - or stones - are used by the construction industry here to produce concrete.
Indonesia announced the ban on the export of land sand in January.
Mr Mah said yesterday there has been no land sand from Indonesia in Singapore since the ban. Importers said the detained barges contained granite material and not sand.
'They say they have the necessary certificates to prove this. Yet their barges have been detained,' he said.
'On our end, we can verify that there has been no land sand from Indonesia since the ban took effect in early February. All the supply we are getting is from other sources.
'We are quite puzzled and we do not know how long these actions will continue.'
The price of granite aggregate has risen from $25 per tonne to $70 per tonne. Concrete prices also shot up from $70 per cu m to about $200 per cu m.
To ensure there is no disruption to work on projects, Mr Mah said the Government is releasing granite aggregates from its stockpile and buying from other sources. It is encouraging the private sector to do the same.
However, he said that if the situation persists, the price of granite will go up because the 'alternative sources' are farther away compared to Indonesia.
Responding to Dr Lily Neo (Jalan Besar GRC), who asked about the impact on contractors, he said the increase in construction costs should be between 1 and 3 per cent, which he believed was 'quite manageable'.
The Government will also have a cost-sharing arrangement with contractors and suppliers of public-sector projects - the same way it did for sand.
Mr Mah hoped that private developers would do likewise with their contractors.
More importantly, he urged contractors to rely less on concrete - and thus the need for granite and sand - and adopt more sustainable methods.
Minister of State (National Development) Grace Fu told MPs the sand and granite problems were 'timely reminders' of the importance of diversifying construction materials. She called for the greater use of glass and steel.
Contractor Seow Seng Wei was glad to know that Indonesia is not banning granite export and noted: 'The prices of granite have been volatile, so it is definitely an assurance to hear this.'
Indonesia says there's no granite export ban: Mah
Govt will take action to ensure that projects are not disrupted
By Peh Shing Huei
INDONESIA has informed Singapore that there is no export ban on granite, National Development Minister Mah Bow Tan disclosed yesterday.However, the Government is watching the situation closely and will take all necessary measures to ensure there is no disruption to construction activities here, he assured Parliament.
Both Foreign Minister George Yeo and Trade and Industry Minister Lim Hng Kiang contacted their Indonesian counterparts to ask why barges transporting granite materials have been detained on their way here.
Mr Mah revealed that Indonesian Foreign Minister Hassan Wirajuda and Trade Minister Mari Pangestu had the same response: There is no ban on granite shipments. Both will also check on the reasons for the detention of the barges, which has caused a disruption in supply here.
In the past week, the Indonesian authorities have stepped up checks on barges carrying granite, reportedly detaining 13 for allegedly trying to smuggle sand into Singapore.
Granite dust and aggregates - or stones - are used by the construction industry here to produce concrete.
Indonesia announced the ban on the export of land sand in January.
Mr Mah said yesterday there has been no land sand from Indonesia in Singapore since the ban. Importers said the detained barges contained granite material and not sand.
'They say they have the necessary certificates to prove this. Yet their barges have been detained,' he said.
'On our end, we can verify that there has been no land sand from Indonesia since the ban took effect in early February. All the supply we are getting is from other sources.
'We are quite puzzled and we do not know how long these actions will continue.'
The price of granite aggregate has risen from $25 per tonne to $70 per tonne. Concrete prices also shot up from $70 per cu m to about $200 per cu m.
To ensure there is no disruption to work on projects, Mr Mah said the Government is releasing granite aggregates from its stockpile and buying from other sources. It is encouraging the private sector to do the same.
However, he said that if the situation persists, the price of granite will go up because the 'alternative sources' are farther away compared to Indonesia.
Responding to Dr Lily Neo (Jalan Besar GRC), who asked about the impact on contractors, he said the increase in construction costs should be between 1 and 3 per cent, which he believed was 'quite manageable'.
The Government will also have a cost-sharing arrangement with contractors and suppliers of public-sector projects - the same way it did for sand.
Mr Mah hoped that private developers would do likewise with their contractors.
More importantly, he urged contractors to rely less on concrete - and thus the need for granite and sand - and adopt more sustainable methods.
Minister of State (National Development) Grace Fu told MPs the sand and granite problems were 'timely reminders' of the importance of diversifying construction materials. She called for the greater use of glass and steel.
Contractor Seow Seng Wei was glad to know that Indonesia is not banning granite export and noted: 'The prices of granite have been volatile, so it is definitely an assurance to hear this.'
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