Prabowo Praises PT Timah Governance Overhaul and Illegal Mining Crackdown

President Prabowo Subianto has praised the governance overhaul at PT Timah Tbk and the government’s move to stamp out illegal mining activities in Bangka Belitung, stating the reforms are beginning to yield improvements in the company’s operational and financial performance. Speaking at the Annual Session of the People’s Consultative Assembly and the Joint Session of the House of Representatives and the Regional Representatives Council in Jakarta, Prabowo said the government had shut down around 1,000 illegal tin mines in the region. He has also instructed the Indonesian National Armed Forces and the National Police to take firm action against illegal mining that harms the state. “At the end of last year, we closed a thousand illegal mines in Bangka Belitung. I have asked the Armed Forces Commander and the National Police Chief to investigate these thousand illegal mines,” the President said. Prabowo stressed that the crackdown is part of the government’s effort to protect state wealth while improving natural resource governance, adding that law enforcement must be applied indiscriminately. The President also highlighted the impact of the governance reforms on PT Timah’s performance. In the first half of 2026, the company posted a net profit of Rp2.71 trillion, an 804.6 percent surge from Rp300.07 billion in the same period the previous year. “Imagine, in the first six months of 2026, PT Timah has achieved a profit of Rp2.7 trillion. That is nine times higher than the same period last year,” Prabowo said. This profit figure has already surpassed the company’s full-year 2026 net profit target of Rp1.61 trillion. Revenue also increased by 146.9 percent to Rp10.42 trillion from Rp4.22 trillion in the first half of 2025. The improved performance is also reflected operationally, with tin ore production reaching 12,232 tonnes of tin in the first half of 2026, a 75 percent increase from 6,997 tonnes a year earlier. Tin metal production rose 58 percent to 10,865 metric tonnes, while tin metal sales reached 10,984 metric tonnes, an 85 percent jump. The production increase was supported by optimised productivity and additional operating units in both offshore and onshore mining areas. PT Timah optimised its Bucket Ladder Dredges, Suction Dredge Pontoons, and onshore mining through partnership schemes. The company also intensified exploration, optimised processing facilities, and strengthened supervision of its mining business permit areas. These steps are part of a business transformation strategy to strengthen tin governance and company efficiency. PT Timah’s performance was also buoyed by stronger global tin prices, with the average price on the London Metal Exchange reaching US$50,319.19 per metric tonne in the first half of 2026, a 56.68 percent increase. Prabowo said PT Timah’s progress demonstrates the importance of governance reforms in managing state assets and wealth, vowing to continue large-scale reforms of state-owned enterprises. He noted that PT Timah’s valuation in August 2026 had increased by 280 percent compared to August 2025.