Indonesia’s refined tin exports are returning to normal levels as the country’s authorities conclude an investigation into corruption in the domestic tin trade while a crackdown on illegal mining continues.
This year, cumulative exports to April were 130.8% higher than in 2024, when supply was under extreme pressure from heightened regulatory scrutiny. The confiscation of five private smelters, together representing approximately half of the country’s refining capacity, by the Attorney General’s Office and delays in issuance of RKAB work plans and export licences from the Resources Ministry (EDSM) and Trade Ministry led to significantly lower output from the world’s largest exporter of refined tin in 2024.
At a press conference at the Governor of Bangka Belitung’s residence in April 2024, the Head of the Attorney General’s Asset Recovery Agency confirmed that the AGO “will convey [management of the confiscated smelters] to the Ministry of SOEs [State Owned Enterprises], and they will designate an SOE”.
There were initially plans that these companies could soon resume production under new management as the authorities had stated their aim to preserve employment, but ITA is not aware of any developments since this press conference and we understand that these smelters are still non-operational.
According to reports, several leaders from PT Timah Tbk were sentenced in December 2024 in relation to the corruption investigations and are no longer employed by the company.
The Indonesian court also sentenced leaders from several private smelting companies including PT Refined Bangka Tin (RBT), PT Menara Cipta Mulia (MCM), PT Sariwaguna Binasentosa (SBS), PT Stanindo Inti Perkasa (SIP), CV Venus Inti Perkasa (VIP), and PT Tinindo Internusa (TIN).
Government officials from the Ministry of Energy and Mineral Resources (ESDM) were also sentenced.
Sources suggest that the activities in question are said to have occurred between 2018 and 2019, though the exact timeline remains complex.
Tin production in Indonesia fell to its lowest level in more than twenty years to below 50,000 tonnes in 2024. PT Timah, the country’s largest producer, and one of the world’s largest refined tin producers, said that it encountered several challenges in 2024, including the persistent prevalence of illegal mining activities on its operating licences (IUPs) as well as poor weather conditions impacting offshore production.
The company says it is working closely with the authorities to address illegal mining and will strengthen efforts in 2025.
At a public hearing at Indonesia’s House of Representatives in May 2025, PT Timah’s new President Director, Restu Widiyantoro, said that “poor oversight” has led to “rampant illegal mining activities”, resulting in smuggling and loss of revenue from taxes. Restu outlined the company’s measures to combat illegal mining including issuing warnings, dismantling illegal mining rafts, and handing over seized equipment to the authorities.
In 2024, Indonesia launched its commodity tracking system, SIMBARA, for tin and nickel to improve compliance and detect incidences of illegal mining. The system aims to trace a commodity from mine to smelter and to export, allowing authorities to monitor RKAB documentation, exports, financial data, logistical information, and personnel involved. The system is hoped to improve governance and increase government revenue from natural resources.
Our view: A return of more consistent Indonesian supply, following the government’s efforts to restructure the mining sector, is a positive development for the tin industry as supply disruptions elsewhere in Asia and in Africa continue to cause instability and volatility. ITA continues to monitor the situation closely, including through engaging local stakeholders, and welcomes all efforts to address ongoing environmental and governance challenges within the Indonesian tin sector.
PT Timah Tbk is a Member of the International Tin Association.
