Research: Sea sand exports will reduce fishermen's income hundres of billion rupiahs

MOSAIC-INDONESIA.COM, JAKARTA -- The government's policy to relax the export of sea sand and marine sedimentation through Government Regulation No.26/2023 and Decision of the Minister of Marine and Fisheries No 16/2024 were criticized because of its negative impacts. A research institute focused on the climate crisis, Celios, released a study about the potential lost due to  the sea sand mining and export policy.

According to the study, sea sand  miningnegatively affects the environment and economy of the fishermen. Such activity can cause coastal erosion, shoreline changes, as well as damage to marine ecosystems that include coral reefs. The consequences of this damage also affect the lives of coastal communities, especially fishermen who depend on the preservation of marine ecosystems for their livelihoods.

Declining fish catches and loss of marine habitat can have a serious impact on fishermen's incomes and increase unemployment in coastal regions. Fishermen's income will be lost worth Rp 990 billion with jobs in the fisheries sector reduced by 36,400 people. Unemployment was assessed as a result of the sea sand mining model with suction boats and barge haulage being capital-intensive instead of labor-intensive.

According to Celios, Indonesia was initially a major player in the global sea sand export market. In 2001, Indonesia accounted for about 20 percent of the world's total sea sand exports, valued at more than 60 million US dollars. After a temporary ban policy in 2003, Indonesia's sea sand exports fell dramatically to less than 10 million US dollars in the following years.

This decline shows the direct impact of regulations issued to restrict sea sand exports, along with growing concerns about the environmental impact caused by marine sand mining. After the temporary ban, Indonesia's sea sand exports again showed an increase in 2006, although they did not reach the same level as before.

It signals a gap in policy implementation or potential market needs that make exporters seek to remain active despite restrictions. However, this export revival did not last long. In 2007, the government published a law officially banning the export of sea sand.

After the implementation of this Law, the export of Indonesian sea sand almost completely stopped, evident from very low export figures, even close to zero in the following years. The regulation prohibiting the export of sea sand is considered aimed at protecting marine ecosystems from greater damage, but on the other hand also affects Indonesia's position in the global export market.

According to Celios, these data underscore how strict environmental policies can have a direct impact on the economy of certain sectors, in this case sea sand. The decision to permanently ban the export of sea sand in 2007 reflected Indonesia's commitment to maintaining the sustainability of its coastal environment, albeit at the expense of the short-term economic potential of exports of the commodity.

The government then relaxed the export policy of sea sand through Government Regulation Number 26 of 2023. This policy allows the export of marine sand from sedimentation, although it contradicts previous regulations that prohibited mining of sea sand in order to protect coastal ecosystems. The issuance of the Decision of the Minister of Marine and Fisheries Number 16 in 2024 also strengthens the export policy of sea sand.

“The export of sea sand risks creating unemployment in coastal areas. Marine sand mining models with suction vessels and barge haulage also tend to be capital intensive rather than labor-intensive. There is no correlation of sea sand exports with quality and competitive economic growth,” said CELIOS Executive Director Bhima Yudhistira.

According to the Celios study, in the period from 2001 to 2009 (the last year the export of sea sand is allowed), there was a negative relationship between the export of sea sand and the production of catch fisheries. The higher the export of sea sand, it turns out that the production of catch fisheries produced by fishermen decreases.

This condition is similar to various studies that mention that marine sand mining activity affects the production conditions of fisheries. Citing research from Zhong (2024) and Liu, et al (2021) it is mentioned that marine sand mining activities will result in shoreline erosion, habitat destruction, and changes in hydrodynamic conditions, which ultimately reduces the population of ready-to-catch fish. Similarly, Wahyudi, et al (2023) research, which states that marine sand mining in Indonesia causes significant ecological degradation, including decreased aquaculture productivity and loss of important habitats from fisheries.

The impact on local fisheries also has an impact on socio-economic conditions in coastal communities. Husrin, et al (2016) research mentions that sea sand mining activity leads to productivity of the local fishing sector in Lontar village, Regency Serang, Indonesia. Other research from Cruz, et al (2023) shows declines in fish stocks and degradation of marine habitats due to marine sand mining result in decreased fishing catches and threaten the livelihoods of coastal communities.

Celios also explained that the negative impact on the economy is caused precisely by the export of sea sand. Celios predicts that economic output will decrease by Rp1.13 trillion with a decrease in Gross Domestic Product reaching Rp1.22 trillion. The economic downturn resulted from the disruption of fishery production. Fishery production could potentially decrease by up to Rp1.8 trillion due to marine sand mining activities.

Meanwhile, the contribution of the fisheries sector to GDP formation ranges from 2.5 to 2.7 percent. Although on the other hand there is an increase in exports for sea sand, the impact of the decrease in fishery production is much greater. In terms of community income in total, it also decreased with a total of Rp1.21 trillion. This suggests that the surrounding communities are at risk of bearing various burdens compared to receiving benefits economically.