TINS Allowed to Buy Tin from Illegal Community Mines? Here's What Yusril Says

Jakarta, CNBC Indonesia - The government has decided to allow PT Timah (Persero) Tbk (TINS) to buy tin from the public. This follows legal problems and even the burning of a PT Timah representative office in East Belitung last week.

Coordinating Minister for Law, Human Rights, Immigration, and Corrections Yusril Ihza Mahendra said PT Timah (Persero) Tbk will be given a legal framework to temporarily purchase tin that has already ended up in the hands of the public.

Yusril delivered this in a press conference on the integrated resolution of legal problems and PT Timah’s operating areas at the office of the Coordinating Ministry for Law, Human Rights, Immigration, and Corrections, Tuesday (18/8/2026).

So, what does it mean for the government to legalise PT Timah buying tin from illegal mines?

According to him, the policy is not intended to legalise illegal mining activities.

Yusril explained that the government must consider the real conditions on the ground. According to him, if law enforcement is carried out rigidly against all mining activities without permits, communities who depend on tin mining for their livelihoods will also be affected.

“Yes, because we have to deal with the realities that exist in society. So between what is ideal and what is happening on the ground, we have to harmonise them. Indeed, if we purely carry out law enforcement, everyone would be arrested. Those arrested would be our own people, and they do not necessarily have bad intentions. They just want to eat, mining tin here and there, with no IUP, with nothing, sometimes even on other people’s empty land, scraping to get a kilo or two of tin,” he explained during the press conference, quoted Wednesday (19/8/2026).

The legal framework for the legality and purchase of tin will be formulated by a small team chaired by Deputy Coordinating Minister for Law, Human Rights, Immigration, and Corrections Otto Hasibuan.

Yusril said the reality is that there are people who carry out simple mining because of economic needs. On the other hand, the government has also found illegal mining activities that are indeed carried out deliberately.

“Besides that, there are also those who do carry out illegal mining activities. Now, if we do not provide a policy framework to deal with this issue, all the people will be arrested,” he said.

According to Yusril, the government has chosen a middle path to deal with tin that has already ended up in the hands of the public. PT Timah will have a legal basis to buy the tin, while the government drafts new regulations governing tin mining management in a more orderly manner.

“PT Timah has funds to buy tin circulating in the community,” he explained.

Yusril said that if PT Timah does not buy the tin, the government faces two options. First, all owners of tin from illegal mining are prosecuted and the commodity is confiscated for the state. Second, the tin could potentially be smuggled abroad.

He assessed that the second option is difficult to prevent entirely given the geographical conditions of the Bangka Belitung Islands, which have open waters and are close to neighbouring countries such as Singapore and Malaysia.

“Moreover, Singapore and Malaysia are very close in distance from Bangka Belitung,” he said.

Therefore, the government will provide a temporary legal basis for PT Timah to make purchases. Yusril stressed that the policy does not mean the government condones illegal mining activities.

“We believe the directors of PT Timah have good intentions in buying tin that has already ended up in circulation, not in condoning the tin,” he said.

He explained that PT Timah actually needs legal protection so that the decision to buy tin already circulating in the community does not cause the board of directors to face law enforcement officials.

“Let them not be arrested by law enforcement officials, even though they have not committed any wrongdoing for personal gain. They are doing something for the interests of the state,” said Yusril.

For information, the legality of purchasing tin from the public will apply until the government succeeds in issuing a Presidential Regulation related to the governance of tin mining products.

“Until when? (The purchase of people’s tin) Until the Perpres is finished,” he said.

The government, Yusril continued, will accelerate the drafting of the Perpres. He is targeting the new regulation to be completed within about one month.

“If it can be completed within one month, alhamdulillah. That means only one month to deal with this situation,” said Yusril.