Crackdown on Illegal Mining Catalyses Production Surge and Profitability for Timah
The government’s efforts to clamp down on illegal tin mining are providing a major boost to PT Timah Tbk (TINS), with the crackdown catalysing a recovery in production and financial performance. Securing national strategic reserves is expected to redirect a significant portion of the tin supply, previously lost to the shadow economy, back into the legal supply chain.
President Prabowo Subianto previously estimated that shadow mining activities accounted for roughly 80% of total tin production in the Bangka Belitung region. The Indonesian Tin Exporters Association noted that up to 12,000 tonnes of tin could be exported illegally each year, creating stiff competition for official producers like TINS.
The impact of the government’s enforcement is now clearly visible in the company’s financials. In the first half of 2026, TINS saw its tin ore production reach 12,232 tonnes, a 75% increase compared to the same period last year. This recovery in output, combined with favourable global prices, saw sales volume of refined tin jump to 10,984 metric tonnes.
Financially, the company’s revenue soared alongside production. Net profit skyrocketed by approximately 805% to IDR 2.71 trillion, up from IDR 300 billion in the first half of 2025. The company’s fundamentals were further strengthened by high global tin prices, with the average London Metal Exchange (LME) price in the first half of 2026 reaching USD 50,319 per metric tonne, a 56.7% increase year-on-year.
Co-founder of Pasar Dana, Hans Kwee, assessed that the outlook for TINS remains positive, supported by the production recovery, supply normalisation, and high commodity prices. He highlighted the company’s attractive valuation and the positive long-term demand prospects for tin, driven by the semiconductor and artificial intelligence (AI) industries. TINS’s market capitalisation has also reflected this turnaround, rising from IDR 7.6 trillion in August 2025 to IDR 28.75 trillion in August 2026.