Sea Sand Export Controversy: Facilities Of Political Motives To Potential Addition Of Unemployment In Coastal Areas

JAKARTA President Joko Widodo (Jokowi) has allowed the implementation of sea sand exports through Government Regulation (PP) Number 26 of 2023 concerning Management of sedimentation Results in the Sea. However, this decision was negatively responded to by economic observers. Instead of increasing state revenue, exports of marine sand sediment have the potential to increase the number of unemployed.

Jokowi emphasized that the export permits that were opened were not other sand, but sedimented sand which was considered to have caused silting, thus disrupting shipping activities.

"Once again, it's not marine sand, yes, what was opened (the results) of sedimentation," said Jokowi on September 17, 2024.

This is the first time the government has opened sea sand exports in the form of sedimentation results after 20 years of closure. Previously, the Indonesian government had banned sea sand exports during the administration of President Megawati Soekarnoputri in 2002. The ban on sea sand exports was due to high coastal exosystems.

However, the reason behind the export ban in the era of President Megawati did not stop the government from now again legalizing these activities.

To resume this export, the government has opened registration for companies interested in managing marine sedimentation results on March 15-28, 2024. Quoting Kompas, so far there have been 71 companies that have registered to export sand after the opening of the sediment sea sand export tap abroad. A total of 66 companies are considered to have met the document's completeness criteria.

Of concern, from these various lists, several companies were found to be affiliated with a number of big figures, ranging from former ministers, national entrepreneurs, to the children of former state officials.

One of the companies that applied for a sea sand mining permit was PT Gajamina Sakti Nusantara. According to the company's deed, the name of the founder was Yusril Ihza Mahendra, a politician from the Crescent Star Party (PBB). Previously he served as Chairman of the Legal Team and Deputy Steering Committee of the Prabowo National Campaign Team Subianto-Gibran Rakabuming Raka in the 2024 presidential election. Yusril did not deny his relationship with Gajamina. He claimed to have founded the company in June 2023.

Apart from PT Gajamina Sakti Nusantara, there is also PT Bumi Lautan Samudera which has applied for a sea sand mine. In the deed of the company, there is the name Rahmania Kannesia Dahriri who serves as a commissioner. Apart from being a doctor at a hospital in Jakarta, Rahmania is the daughter of the Minister of Maritime Affairs and Fisheries 2001-2004 Rokhmin Dauri.

Then PT Rejeki Abadi Lestari who also applied for a permit to mine sea sand. This company only established in August 2023, or three months after President Jokowi issued a policy on the use of marine sediment, including sea sand.

In the company's deed, the majority shareholder of Rejeki Abadi Lestari is PT Arsari Pradana Utama or Arsari Group owned by Hashim Djojohadikusumo. Hashim is none other than the younger brother of the elected president and chairman of the Gerindra Party, Prabowo Subianto. Hashim's son, Aryo PS Djojohadikusumo, sits as commissioner and shareholder of the minority Rejeki Abadi Lestari.

Unlike Yusril, who openly admitted that his company had registered to manage the sedimentation results, Rokhmin Dahriri denied reports that he and his son were related to the Ocean Ocean Earth.

"Wow, my name and my child are painted, sure. I don't know anything about the Ocean Ocean Earth," he said on Friday, September 27, 2024.

Likewise, when the Vice President of Corporate Communications Arsari Group Ariseno Ridhwan was asked for information regarding this matter. He did not provide certainty regarding his company's share ownership in Rejeki Abadi Lestari, who applied for a concession permit for the management of sedimentation results. "Let me check," said Ariseno.

Political observer Pieter C Zulkifli said President Jokowi's decision to finally open the tap for sea sand exports at the end of his government invited questions.

"Is this purely an economic policy or is there a political agenda behind it?" said Pieter.

According to Pieter, there should be other things that are more important than opening the tap for sea sand exports, such as improving law enforcement, restoring national education institutions, health services that have not taken sides with people's safety, to issuing PP on Health Omnibus Law.

"Isn't that what the community really needs? The safety of the people should be a priority for the country," he said.

Meanwhile, the results of a study by the economic research institute and the public policy of the Center of Economic and Law Studies (CELIOS) show that the potential benefits for the country are relatively small even though sea sand exports are expected to provide benefits for entrepreneurs and contribute state revenues.

Director of Digital Economy CelIOS Nailul Huda explained that the simulations carried out found a negative impact on Gross Domestic Product (GDP) of Rp1.22 trillion, and public income would decrease to Rp1.21 trillion.

"So this study responds to various government claims that sea sand exports will increase the country's economic and income benefits. The claim turns out to be excessive," said Huda in an official statement from CelIOS.

On the other hand, the Executive Director of BELIOS Bhima Yudhistira said that sea sand exports actually risk creating unemployment in coastal areas. The model of sea sand mining using a suction ship and barge transportation also tends to be capital-intensive (capital intensive) is not labor-intensive.

The same study also shows that any increase in marine sand exports risks reducing capture fisheries production. As a result of sea sand exports of 2.7 million square meters, there is a decrease in the gross added value of the fisheries sector which is estimated at IDR 1.59 trillion. If estimated, the lost income of fishermen is IDR 990 billion and reduced employment opportunities in the fisheries sector by 36,400 people.

"There is no correlation between sea sand exports and quality and competitive economic growth," said Bhima firmly.