PT Timah Partners with Perminas to Develop Rare Earth Metal Downstream Industry
PT Timah Tbk (TINS) has entered into a partnership with PT Perminas to develop a downstream rare earth metal (LTJ) project in the Bangka Belitung region. This strategic collaboration aims to strengthen national self-reliance in managing critical minerals through mastery of advanced refining technology.
Harry Budi Sidharta, Director of Corporate Strategy and Business Development at TINS, stated that the partnership focuses on utilising Perminas’s technological expertise, as the company holds the mandate for rare earth management. The move is intended to enable Indonesia to independently process its rare earth potential amid difficult access to processing technology in the global market.
“Regarding the cooperation with Perminas, we are focusing on the management of rare earth metals. As is known, Perminas’s mandate is the management of rare earth metals, so Perminas’s role in the downstream rare earth synergy in Bangka Belitung with PT Timah is as our partner in providing technology,” he said during the Annual General Meeting of Shareholders for the 2025 financial year in Jakarta, quoted Monday (15/6/2026).
The partnership is considered crucial given the complex technical characteristics of rare earth processing and its close links to international geopolitical dynamics. Through this synergy, the company hopes to gain access to appropriate technology standards to optimise the added value of associated minerals in mining areas.
“As is known, the technology for managing rare earth metals is not easy to obtain and is sensitive to geopolitical issues, so we are utilising or synergising with Perminas to help us obtain the appropriate technology for managing rare earth metals in Bangka Belitung,” Harry explained.
In addition, PT Timah continues to strengthen its core business by targeting an increase in smelter production capacity this year. The company is committed to ensuring that every operational stage, from exploration to downstream processing, aligns with principles of good and sustainable corporate governance.
Previously, TINS President Director Restu Widiyantoro explained that the collaboration with Perminas includes two main schemes for dividing roles in the mineral supply chain. TINS will act as the supplier of raw materials derived from tin production residue (SHP), which Perminas will then process into derivative products.
“PT Timah is tasked with supplying the REE materials or SHP. The main material for Perminas comes from tin production residue, which Perminas will subsequently process into its derivative products,” he said during a hearing with Commission XII of the Indonesian House of Representatives, quoted Thursday (16/4/2026).
The development plan is projected to contribute foreign exchange to the country within two years. The government had previously scheduled the groundbreaking for the REE research and industrial facility for 20 May 2026.
“This cooperation is programmed so that monetisation is expected within two years. So it can produce products that generate foreign exchange for the country,” he continued.
Restu assessed that the assignment to manage rare earth metals represents a significant leap for the company to boost revenue beyond its core tin business. Currently, the company has begun collecting production residue raw materials to be prepared as the main supply for Perminas.
“We have achieved a fairly good leap because with this programme, we are programming it to obtain revenue or profit that is far greater than before. This is what we hope for,” he concluded.