Progressive Applies, Tin Royalty Rates Will Increase Three Percent

Pure tin bars are ready for export at the Pangkalpinang BGR warehouse, Bangka Belitung Islands Province. (Photo: ANTARA)

JAKARTA - The Director General of Mineral and Coal (Dirjen Minerba) of the Ministry of Energy and Mineral Resources, Ridwan Djamaluddin, revealed that his party is currently preparing a new policy related to the management of tin trade.

Taking into account the dynamics of the tin price, the government supports the proposal to increase the tin royalty rate, in which the increase will be carried out progressively depending on the sales price figure.

"We are discussing this and we are simulating the numbers so that the state will receive more revenue and business entities will receive less revenue but not too much," said Ridwan in a Hearing Meeting with Commission VII DPR RI, Tuesday, June 21.

For that, Ridwan continued, the government is looking for a solution so that it can be accepted by all related parties.

He continued, his party had carried out an inventory of tin prices from 2015 to 2022.

According to him, the average tin price is US$22,693 per tonne and fluctuates every year.

"This year it is high at 41,000 US dollars per tonne, but sometimes it is in the tens of thousands to 20,000 dollars per ton," he said.

Based on the royalty rate listed in PP number 81 of 2018 with a flat (fixed) scheme of three percent.

In his presentation, Ridwan explained, state revenue from tin royalties continues to increase from year to year.

Meanwhile, said Ridwan, the Ministry of Energy and Mineral Resources is targeting tin production of 70,000 tons this year, with the realization of production as of May 2022 reaching 9,654.73 tons, with sales reaching 9,629.68 tons.

Meanwhile, of the 34.61 thousand tons of tin produced in 2021, only 3.19 thousand tons were absorbed for the domestic industry.