Sea Sand Extraction Estimated to Generate Rp2.5tn in Non-Tax Revenue: Ministry

Tempo
03 Oct 2024

TEMPO.CO, JakartaThe Ministry of Marine Affairs and Fisheries estimates over 17.6 billion cubic meters of sea sand to be extracted from seven regions in Java, East Kalimantan, and Riau Islands. 

The Ministerial Decree concerning the planning document of sedimentation management at sea stipulated that the sea sand would be dredged from the waters of Demak, Surabaya, Cirebon, Indramayu, and Karawang.

Sea sand would also be extracted in the waters of the Makassar Strait, which are part of the Kutai Kartanegara and Balikpapan areas, as well as on three islands in the Natuna Sea of Riau Islands, namely Karimun, Lingga, and Bintan.

The largest potential is located in the Natuna Sea, where 9 billion cubic meters of sea sand could be extracted from a 5.8 million square area.

Previously, the Director of Non-Tax State Revenue of Ministries/Institutions of the Directorate General of Budget of the Ministry of Finance, Wawan Sunarjo, said sea sand utilization could generate Rp2.5 trillion per 50 million cubic meters in the form of non-tax state revenue.

He emphasized that the figure was still a rough calculation as the implementation of sea sand exports was still being reviewed. 

"How much is the (potential non-tax state revenue) actually? We don't dare to say," said Wawan Sunarjo on September 26. The figure was obtained from assumptions and rough calculations if 50 million cubic meters of sea sand were extracted.

Of that amount, assuming only 27.5 million cubic meters of sand is used for domestic needs with a Cost of Goods Sold (HPP) of Rp93,000 and a tariff of 30 percent, the PNBP collected could reach Rp767.25 billion.

Meanwhile, if the rest are exported with an HPP of Rp228,000 and a tariff of 35 percent, the 22.5 million cubic meters could generate Rp1.79 trillion of PNPB. Thus, the total non-tax state revenue from the sea sand extraction could reach Rp2.56 trillion.

Meanwhile, according to Ministerial Decree Number 6 of 2024 concerning the Reference Price of Sea Sand, the reference price for exported sea sand is Rp186,000. Thus, the potential non-tax state revenue generated from sea sand utilization is Rp2.23 trillion.

Currently, 66 companies have applied for sea sand extraction permits. The Ministry of Marine Affairs and Fisheries has not decided when the dredging will begin.

The decision to dredge sea sand has been challenged by environmental groups, for fear of environmental damages. The government has since refuted the claim.

ANTARA

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