Robert Go, Jakarta – The Indonesian government will impose a quota on sand supply to Singapore from next month as part of efforts to block illegal sand mining, and at the same time, to increase revenues from the commodity.

The new policy, which is to be accompanied by stepped-up patrols by the Indonesian Navy to catch illegal sand miners, could also make Singapore's reclamation projects more expensive if other sources of sand cannot be found.

Mr Ferry Yahya, director for export of agricultural and natural products at the Ministry of Industry and Trade, told The Straits Times: 'My ministry will determine the maximum amount of sand that can be mined and exported nationally.

"We want to exercise better control on sand mining, to prevent environmental damage and smuggling that have happened in the past." Trade and Industry officials admitted that Indonesia was also instituting the policy in order to make more money from sand deals.

Mr Ferry said: "We have not settled on a final price, but senior officials believe that there has to be a reasonable price for sand. It is an important commodity, and Jakarta as well as the local regions where the sand comes from should be compensated for it."

Previously, Indonesia charged around S$1.30 per cubic metre, but if Jakarta gets its way, the price of each cubic metre of sand taken from its territory could escalate to S$5. The central government intends to only set a national quota.

Regional administrations can compete for customers and decide among themselves how much sand each area will export.

Mr Ferry's office will come up with a limit for the rest of 2002 by early September. It will set quotas applicable for subsequent years every December of the previous year.

The official declined to comment on just how much sand Indonesia is prepared to export yearly from now on, saying that his aides were still studying the issue. But a source in the ministry indicated that the quota would allow the export of less than 100 million cubic metres per year.

The same source reported that by Indonesia's calculations, Singapore's various reclamation projects require more than 110 million cubic metres of sand yearly.

Apparently intent to set teeth to this new policy, Jakarta has also instructed its Navy to increase its presence in Riau waters in order to foil illegal sand exports.

In recent weeks, the authorities have caught and held seven ships which were mining for sand while possessing false permits and export licences.