INDONESIA: The Indonesian Ministry of Maritime Affairs and Fisheries (KKP) has suspended the operations of two vessels, MV Yang Cheng 6 and MV Zhou Shun 9, suspected of illegal sand dredging in Batam Waters, Riau Islands.

The vessels, a dredger and a cargo ship, were seized on Wednesday (9 Oct) for allegedly operating without the necessary permits and documentation.

Although the ships were flying Malaysian flags at the time of the seizure, they were also displaying the flags of Singapore and the Republic of Sierra Leone.

According to the Marine Traffic website, both vessels are registered under the flag of Sierra Leone, a West African nation.

The MV Yang Cheng 6, specifically, is listed as 130 metres long, 20 metres wide, with a gross weight of 8,012 tonnes

The case was officially announced by the KKP during a press conference held on Thursday (10 Oct).

Key officials present included Minister of Maritime Affairs and Fisheries Sakti Wahyu Trenggono, Director General of Marine and Fisheries Resources Supervision (PSDKP) Pung Nugroho Saksono, Director General of Marine and Marine Space Management Viktor Gustaaf Manoppo, and KKP spokesperson Wahyu Muryadi, along with other senior officials.

Director General of PSDKP Pung Nugroho Saksono shared the sequence of events leading to the arrest.

While Minister Sakti was aboard the Orca vessel en route to Nipah Island on Wednesday (9 Oct) he passed the MV Yang Cheng 6.

The Minister immediately ordered an inspection of the vessel, which revealed that it lacked proper documentation, except for papers belonging to the ship’s captain.

“This ship has been under our surveillance for some time,” said Pung, adding that the MV Yang Cheng 6 had frequently entered Indonesian waters.

He emphasised that, to date, the Ministry has not issued any permits for sea sand extraction, as stipulated in Government Regulation (PP) No 26 of 2024 on the Utilisation of Marine Sedimentation.

Pung stated that while the investigation is still ongoing, preliminary inspections have found around 10,000 cubic metres of sea sand aboard the Yang Cheng 6.

This quantity represents a single dredging operation lasting nine hours.

He explained that the government had introduced PP No 26 of 2024 to regulate marine sedimentation extraction and prevent the illegal exploitation of Indonesia’s sea sand resources.

According to the ship’s captain, the vessel typically carries out ten sand suction operations each month, with plans to transport the sand to Singapore.

Captain denies illegal sand dredging

However, one of the crew members, who identified himself as the captain of the MV Yang Cheng 6, Tias, denied any involvement in illegal dredging activities in Indonesian waters.

He stated that the ship had completed sand extraction in Muar, Malaysia, and was on its way to Changi, Singapore, when it was intercepted by Indonesian authorities.

Tias explained that, according to international maritime border regulations, ships are required to pass through the Traffic Separation Scheme (TSS), a route close to Indonesian waters.

Tias insisted that the sand aboard the MV Yang Cheng 6 had been extracted from Malaysian waters, not from Indonesia.

However, he acknowledged that he was unable to present the ship’s documents during the inspection, explaining that the paperwork was stored at the shipping company’s office in Malaysia.

“That’s why we couldn’t produce the documents during the inspection,” he said.

He also emphasised that the ship’s activities had no connection to Indonesia and that the sea sand was intended for Singapore.

The two vessels are currently moored in waters near Batam.

Illegal dredging costs Indonesia over IDR 223 billion annually, official warns

The Director General of PKRL, Viktor Gustaaf Manoppo, estimated that Indonesia loses over Rp223.2 billion (approx. US$ 14.3 million) annually from the operations of a single illegal dredging ship.

This figure is based on the production of sand suction conducted each year. “While we continue to assess ecological damage, the financial losses to the state are already significant,” Viktor stated.

He further noted that the current price for one cubic metre of sea sand is  Rp186,000 (US$11.94), and calculated that the loss for a single ship amounts to Rp223.2 billion.

This estimate does not include other potential revenue losses, such as export duties and mining permits.

Viktor warned that if multiple ships are involved, the losses could skyrocket.

“We will continue to investigate the full extent of these operations, especially since much of this dredging likely occurs at night, making it difficult to monitor,” he concluded.

INDONESIA: The Riau Islands Provincial Government and ferry operators have agreed to reduce round-trip ferry ticket prices for the Batam-Singapore route by IDR30,000 (US$2), effective from 24 September 2024.

This decision followed discussions between the government and ferry operators held from 22-23 September 2024.

Junaidi, Head of the Riau Islands Transportation Agency, confirmed the fare reduction in a statement on 24 September.

He explained that the IDR30,000 (US$2) price cut resulted from ferry operators’ calculations and marked the first phase of a broader review of Batam-Singapore ferry pricing.

This initial reduction aims to establish a more suitable pricing structure for ferry services between the two destinations.

Junaidi referred to remarks by Governor Ansar Ahmad, who emphasized the importance of conducting a detailed survey to understand the root causes of high ferry ticket prices.

“As Governor Ansar has mentioned, a survey will be conducted to identify the causes of the high ticket prices to determine the appropriate pricing for Batam-Singapore ferry tickets,” Junaidi added.

One factor contributing to the increase has been the rise in seaport taxes, particularly in Batam, where the tax increased from IDR65,000 (US$4.3) to IDR100,000 (US$6.62).

Additionally, ferry operators cited rising exchange rates, higher fuel costs, increased counter rental fees, and crew salary hikes as key reasons for the surge in prices.

While ferry operators have raised concerns about these pressures, Junaidi stressed that a comprehensive survey would be essential to verify the claims and guide future pricing decisions.

He noted that further steps would be taken once the survey is completed.

Junaidi also addressed ongoing delays in finalizing visa-on-arrival (VoA) regulations for foreign tourists, stating that simplifying the VoA process could significantly impact ferry passenger numbers.

He believes that easing these regulations would encourage more foreign tourists to travel between Batam and Singapore, potentially increasing ferry occupancy rates.

The issue of high ferry ticket prices has been a long-standing concern for local authorities.

Governor Ansar Ahmad had previously announced plans to form an investigation team to address the significant price hikes that have occurred since the COVID-19 pandemic.

The fares for the Batam-Singapore route experienced a sharp increase, with prices doubling after the pandemic.

One-way ticket prices, which were previously between IDR250,000 (US$16.55) and IDR350,000 (US$23.17), surged to IDR500,000 (US$33.1) to IDR550,000 (US$36.4).

In a press release issued on 23 September 2024, Governor Ansar further detailed the fare hikes, stating that round-trip ticket prices, which were once around IDR480,000 (US$31.77), had risen to approximately IDR760,000 (US$50.3).

Governor Ansar highlighted the importance of reducing ferry ticket prices to boost passenger occupancy rates and attract more foreign tourists, aligning with broader efforts to revitalize tourism in the region, which was heavily impacted by the pandemic.

The recent IDR30,000 (US$2) price reduction is seen as a first step in adjusting ferry prices to more affordable levels, with further reviews and negotiations expected to ensure sustainable and fair pricing for the Batam-Singapore route.