Illegal Mines Curbed, Tin Industry Performance Strengthens
The crackdown on around 1,000 illegal mines and the closure of smuggling routes in Bangka Belitung are beginning to have a tangible impact on improving governance in the national tin industry. The move has coincided with stronger performance at state-owned PT Timah Tbk (TINS).
The government’s firm law enforcement measures have helped reorganise mining activities that had long been marred by unlicensed mining practices (PETI). The policy has also opened space for more structured, legal, and integrated production activities within the national supply chain.
In his state address at the Annual Session of the MPR/DPR RI at the Nusantara Building, Parliament Complex, Senayan, on Friday (14/8), President Prabowo Subianto stressed that the government had shut down 1,000 illegal tin mining sites in the Bangka Belitung Islands Province.
The crackdown was carried out in an integrated manner involving the Indonesian National Armed Forces (TNI) and the National Police (Polri) to investigate large-scale unlicensed mining practices while closing tin smuggling routes.
University of Indonesia state-owned enterprise observer Toto Pranoto assessed that the PETI problem has long been a structural challenge for the national tin industry. The complexity of the networks involved makes it difficult to handle, both for law enforcement officials and for PT Timah as the official operator managing the nation’s tin mineral wealth.
“The PETI problem is not a new story. The complexity of the networks involved means law enforcement officials face major challenges, while PT Timah is also in a difficult position when dealing with illegal mining practices,” he said in a written statement on Saturday (15/8).
According to Toto, the government’s crackdown is an important starting point in building healthier governance of the tin industry.
At the same time, PT Timah has strengthened supervision and control of operational activities in its mining areas. The move has gone hand in hand with the crackdown on PETI and the closure of smuggling routes carried out by the government.
The strengthening of operational oversight has also been supported by the leadership of PT Timah’s president director, who has a military background. The combination of government law enforcement and the company’s internal controls has helped keep production activities more orderly and measurable.
The improvements have begun to be reflected in PT Timah’s operational performance. The company’s tin ore production increased 75% from 6,997 tonnes of Sn in the first half of 2025 to 12,232 tonnes of Sn in the first half of 2026.
Tin metal production also grew 58% to 10,865 metric tonnes, while sales volume jumped 85% to 10,984 metric tonnes.
In line with the production increase, the company’s financial performance showed significant improvement. TINS revenue grew 146.9% from Rp4.22 trillion to Rp10.42 trillion.
Net profit attributable to owners of the parent entity soared 804.7% from Rp300.07 billion to Rp2.71 trillion. Meanwhile, operating profit rose from Rp380.20 billion to Rp3.46 trillion.
The increase shows that the crackdown on illegal activity has given PT Timah room to optimise production from its mining areas legally and in a more measured way. Besides stronger oversight, the company’s performance was also supported by a 52% increase in the average selling price of tin metal to US$49,794 per metric tonne.
Going forward, Toto stressed that consistency in law enforcement is key to ensuring that improvements in tin industry governance can be sustained. PT Timah’s capacity also needs to be continuously strengthened in terms of operations, governance, and technological mastery, both upstream and downstream.
The transformation of community mining activities into legal and integrated operations within the industrial ecosystem also needs to be encouraged. Community miners can be directed into community mining areas and work through partnership schemes with PT Timah.
“The success parameters must be concrete, namely increased tax and royalty revenues, community mining activities transformed into legal operations in partnership with PT Timah, and former PETI areas restored. If these three things happen, the crackdown will truly deliver economic, social, and environmental benefits,” he concluded.