According to local press reports Bangka-Belitung police are investigating the legality of 91 containers of tin held in Pangkalbalam port on Bangka island. Top level officials led a swoop last Tuesday night (9 September), which appears to have been triggered by information that some of the tin did not have correct documentation on its origin. There are conflicting reports on whether the containers were already on a barge or held in port warehouses.
All the tin is believed to belong to independent smelters, and is a mix of ingots traded through ICDX and other non-ingot products. The police investigation has also involved the port authority, customs officials and representatives of the two surveying companies, PT Surveyor Indonesia and PT Sucofindo, which are responsible for checking documentation for the trade ministry. A police spokesman told reporters that the containers had not been officially seized, while a second official said that the exercise was because a more pro-active role was now being taken by the police in supervising tin exports.
ITRI View: While the investigation could have some immediate market impact by delaying shipment of some 2,000 tonnes of tin, this news could be of long-term importance if it signals a tougher approach by the authorities in implementing Indonesia’s export regulations. Stricter enforcement of rules on the origin of tin being exported – which have been in place since 2007 – plus tighter controls on the quality of non-ingot tin due to come into force in November, could potentially result in a significant and sustained decline in Indonesian production and exports.
