Indonesia Is World's Largest Tin Producer, Yet Cannot Set Its Own Price
Jakarta - Indonesia is one of the world’s largest tin producers. However, the scale of its production has not yet enabled Indonesia to determine tin prices on the global market.
Coordinating Minister for Law, Human Rights, Immigration, and Corrections Yusril Ihza Mahendra said this situation is a strategic problem that the government must address immediately. He made the remarks during a press conference on the integrated resolution of legal issues and the operational areas of PT Timah at the Coordinating Ministry for Law, Human Rights, Immigration, and Corrections on Tuesday (18/8/2026).
“Unfortunately, this very rich tin, alongside other mineral elements, has not been managed well, so we cannot actually determine the world tin price; we are dictated by others,” Yusril said, as quoted on Wednesday (19/8/2026).
Yusril believes that in the future the state should have a stronger position in global tin trade. Moreover, he noted that several countries that were previously tin producers, such as Bolivia, Malaysia, and Thailand, have stopped production.
“Imagine, in this world, the only country producing tin is Indonesia. Bolivia has stopped, Malaysia has stopped, Thailand has also stopped,” he said.
According to Yusril, Indonesia’s tin production is also concentrated in the Bangka Belitung Islands Province. This potential should be managed more strategically to provide greater added value and benefits for the public.
For this reason, the government wants to carry out a comprehensive overhaul of tin industry governance. One issue of concern is the practice of smuggling, which is considered to be detrimental to Indonesia.
Yusril also highlighted a neighbouring country that has now become a global tin producer and exporter, even though it is said not to have adequate tin reserves or mines.
“Let there be no more smuggling. Currently, there is a neighbouring country that has become a tin producer and a world tin exporter, even though it has no tin mines. Where does it get tin? From smuggled goods from our country,” he stressed.
The government will involve law enforcement agencies, the government, PT Timah (Persero) Tbk, and the public in restructuring the national tin sector.
Yusril hopes the overhaul will enable Indonesia to no longer be merely a commodity supplier, but to have a stronger bargaining position in determining world tin prices.
“We as producers must determine the world tin price. Do not be played by others,” he said.
Furthermore, the former Minister of State Secretary added that strengthening tin governance is ultimately expected to improve the welfare of the Indonesian people at large.