Trade Minister Zulkifli Hasan: Prabowo Will Implement Bureaucracy Similar to the New Order

TEMPO.CO, Jakarta - With two months left in Joko Widodo’s administration, Zulkifli Hasan has initiated urgent policy changes. At the end of August, the Trade Minister issued two regulations that reopened sea sand exports, which had been banned since 2003. The regulations stem from Government Regulation No. 26/2023 on Marine Sedimentation Management.

The controversy surrounding sea sand exports intensified after President Joko Widodo weighed in. According to Jokowi, the government is not reopening sea sand exports but rather facilitating the sale of sedimentation that disrupt shipping routes. Without providing a clear definition, Jokowi asserted that sea sand and sediment are two distinct commodities.

While Zulkifli signed off on the regulations regarding sea sand exports, he asserted that other ministries and agencies were involved in the formulation. “This is a government decision and not solely my authority,” said the General Chair of the National Mandate Party (PAN) on Monday, September 23.

In a one and a half hour exclusive interview with Tempo, Zulkifli elaborated on the sea sand export policy and the direction of the incoming administration under elected president Prabowo Subianto. PAN is part of the Indonesia Onward Coalition backing Prabowo in the 2024 presidential election. Zulkifli’s tone fluctuated as he reiterated his agency’s authority over sea sand exports, including his trip to Singapore two weeks after issuing the export regulations.

Before the government banned sea sand exports, Singapore was the largest importer of Indonesian sea sand. Shipments from Indonesia to that country reached 53 million tons annually from 1997 to 2002. “I went to Singapore for medical treatment, not to discuss sea sand,” he clarified. Below are excerpts of the interview.

So, what is the real reason behind the new sea sand export policy?

I was following up on the Government Regulation No. 26/2023 on Marine Sedimentation Management. The Maritime Affairs and Fisheries Ministry already has the technical regulations for permits. Likewise, the Energy and Mineral Resources Ministry already has in place the regulation on sedimentation. Everything is ready, so, how come I don’t comply? I am part of the government, and my position is not higher than the President.

One requirement for reopening exports is the fulfillment of domestic needs. Has that been met?

The export requirements must be met, but I don’t have a hand in that. There are other requirements, such as environmental impact analyses, whether it is really the sedimentation that is taken, and where it is taken. Once everything is complete, it comes to me. I cannot obstruct exports if everything is in order. 

How significant is the demand for Indonesian sea sand from other countries?

I don’t know if there are buyers or not. It’s not my ministry’s business. I am the Trade Minister, but I don’t take care of sand trade, but rather goods. 

The demand from Singapore is substantial, and you have just visited there. Did you discuss sea sand?

I went there for medical treatment, not to discuss sand. I don’t understand.

Money from the sea sand business is huge. That’s why there were illegal shipments...

That’s not my business nor initiative. I don’t follow it. What’s important is that if the requirements are met, I, as a part of the government, must follow the regulations. 

We heard that the sand export regulation was hastily issued due to pressure from businesses...

Hastily? How? This process took two years. I think this policy took the longest time to come out. Trade Minister regulations can change every month. 

Is it true that dozens of companies have already registered as exporters?

There sure will be many. Registration is over there (at different ministry). 

So, in sand export matters, who has the most authority to issue approvals? 

The Finance Ministry via the Customs Directorate. Positions are different because I don’t manage all export and import matters. I only oversee if goods go out or not. There are other parties that determine which goods can be exported. 

What is the role of the Trade Ministry?

I only regulate the traffic. This implementation is already in the Indonesia National Single Window system. If all export requirements are met, I must open it. It’s automatic.

What about supervision?

That’s not my field because there are surveyors. Like when you want to hold a concert, there are all sorts of permits, such as police and tourism permits to take care of. If everything is okay, the requirements are complete, and it’s in the system, we must grant permission.

So, you are just a ‘rubber stamp’?

If everything is correct, I can’t say no. There are procedures for everything.

Why is the policy issued only now, just before the end of the Jokowi administration?

This is a result of the formulation that started two years ago. Discussions were also already underway before I became the minister. Outrage should have arisen when the initiative was first announced.

Read the Full Interview in Tempo English Magazine