Key insights and market outlook
PT Timah Tbk is seeking support from DPR Commission XII to address illegal tin mining through regulatory enhancements and legalization of community mining. The company requests derivative regulations to authorize them to reclaim all tin ore from mining activities within their IUP (Izin Usaha Pertambangan) areas, aiming to stabilize production and combat illegal mining. This move is part of a broader effort to improve governance and trade practices in the tin industry.
PT Timah Tbk has formally requested support from DPR Commission XII to strengthen their efforts against illegal tin mining and stabilize national tin production. The company's Director of Production & Commercial, Ilhamsyah Mahendra, presented three key requests during a meeting with the commission on November 11, 2025.
Derivative Regulation for Tin Ore Reclamation PT Timah is seeking a derivative regulation that would grant them authority to reclaim all tin ore extracted from within their IUP areas. This regulation aims to curb illegal mining activities and ensure that all tin ore is channeled through official company operations. The company believes this will lead to more stable and consistent production levels, which is crucial given the global demand for tin.
Acceleration of Derivative PP from Minerba Law The company is also urging the government to accelerate the issuance of derivative Government Regulations (PP) stemming from the Mineral and Coal Mining Law (UU Minerba). These regulations are expected to support improvements in governance and trade practices within the tin industry, particularly in designating tin as a strategic critical mineral and promoting downstream processing activities.
Legalization and Guidance for Community Mining PT Timah is working to legalize community mining operations within their IUP areas through collaborative arrangements, such as cooperatives. The company has already initiated pilot projects with five cooperatives in the Bangka Belitung region. This approach aims to provide a fair compensation mechanism for community miners while ensuring that their activities are brought under regulatory compliance.
The requests made by PT Timah reflect the complex challenges facing Indonesia's tin mining sector, where illegal mining remains a persistent issue. By seeking stronger regulatory support and engaging with community miners, PT Timah aims to create a more sustainable and regulated mining environment. This move is expected to have positive implications for both the company's operational stability and the broader tin industry in Indonesia.
Regulatory Support Request
Illegal Mining Crackdown
Tin Production Stabilization