Jakarta, October 2, 2024— The government’s decision to relax sea sand exports through Government Regulation No. 26/2023 and Ministerial Decree No. 16/2024 has drawn sharp criticism from academics, environmental activists, and coastal communities. The policy is considered harmful to marine ecosystems, coral reefs, and fishers’ livelihoods.

CELIOS Digital Economy Director Nailul Huda stated, “Our simulation found a negative impact on Gross Domestic Product (GDP) of IDR 1.22 trillion, and people’s incomes will decline by as much as IDR 1.21 trillion. The government’s claim that sea sand exports will boost economic gains and state revenue is an exaggeration.” Huda added, “Historical data from 2001–2009 shows a negative correlation between increased sea sand exports and capture fisheries production.”

CELIOS Executive Director Bhima Yudhistira emphasized, “Sea sand exports risk creating unemployment in coastal areas. There is no correlation between sea sand exports and high-quality, competitive economic growth.” Bhima concluded, “Indonesia will lose its Blue Carbon potential and blue economy ecosystems if sea sand exploitation continues. Sustainable coastal and marine development is far more beneficial.”

The government’s decision to relax sea sand exports through Government Regulation No. 26/2023 and Ministerial Decree No. 16/2024 has sparked sharp criticism from academics, environmental activists, and coastal communities. The policy is seen as destructive to marine ecosystems, coral reefs, and the livelihoods of local fishers.

Nailul Huda, Digital Economic Director at CELIOS, stated, “Simulations show negative impacts on GDP of IDR 1.22 trillion, and household incomes could drop by IDR 1.21 trillion. The government’s claim that sea sand exports would boost economic gains and state revenue is clearly exaggerated.” Huda added, “Historical data from 2001-2009 shows a negative correlation between increased sea sand exports and capture fisheries production.”

Bhima Yudhistira, Executive Director of CELIOS, emphasized, “Sea sand exports actually risk creating unemployment in coastal areas. There is no correlation between sea sand exports and quality, competitive economic growth.” He concluded, “Indonesia stands to lose its Blue Carbon potential and blue economy ecosystems if sand exploitation continues. Sustainable coastal and marine development is far more beneficial.”

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