Encourage Tin Downstreaming, Government Strengthens Indonesia's Position In World Market Trade

Illustration of mining processing (ANTARA)

JAKARTA - The government continues to carry out economic transformation to achieve more inclusive and sustainable growth by encouraging the downstreaming of critical minerals, one of which is tin.

Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that with downstreaming and industrialization, President Prabowo Subianto believes 8 percent growth can be achieved and Indonesia is rich and prosperous can be realized.

As one of the largest tin producers in the world, Airlangga said that tin downstream in Indonesia can not only increase the added value of commodities but also strengthen the competitiveness of Indonesian products in the global market.

Deputy for Commercial and Digital Economy Coordination of the Coordinating Ministry for the Economy Ali Murtopo Simbolon said that in recent years, Indonesia has continued to show its dominance as one of the main players in world tin exports. In 2024 the value of tin exports, namely tin, not alloys and small stems and stems to sellers, reached 1.44 billion US dollars.

"Indonesia managed to export to various main destination countries such as China amounting to USD 284.28 million, India amounting to USD 245.36 million, and South Korea amounting to USD 158.26 million," he said in his statement, quoted Tuesday, January 28.

Ali further said that as one of the largest tin producers in the world, Indonesia has a very abundant resource reserve. It is recorded that around 800 thousand tons or 17 percent of global tin reserves are in Indonesia.

Based on data from the US geological survey agency, Indonesia produces more than 70 thousand tons of lead every year, where 32 percent of lead production is produced by PT. Timah Tbk and the remaining 68 percent are produced by approximately 35 private business entities. Currently, almost 95 percent of national tin production is exported and has not been utilized optimally in the country.

Ali said that tin can increase Indonesia's bargaining position in high-value investments, especially now for semiconductors and the government, making tin downstream into capital to strengthen Indonesia's position in the semiconductor ecosystem.

According to Ali, tin downstream is expected to increase the country's foreign exchange and based on data, it shows that downstream industries have the potential to double export value compared to exports of raw materials.

"With an investment of IDR 1.2 trillion in the construction of the downstream factory, the Government is optimistic that Indonesia can become the largest downstream lead production center in the world," said Ali.

As for investment, Indonesia is a country with a predicate for investment with strong competitiveness. Indonesia's ranking in the IMD Global Competitiveness Index, increased to 27th place from the previous rank 34.

Based on the rating rating from the rating agency, Indonesia's Sovereign Credit Rating (SCR) is one level above the Investment Grade. This shows that investors' solid economic conditions will continue.

The government appreciates PT Cipta Persada Mulia and its subsidiaries, PT Batam Timah Sinergi, and PT Tri Charislink Indoasia, for the commitment and concrete steps that have been taken in the realization of tin downstream.

The government also invites other industry players to support the national downstream agenda in order to strengthen national economic sovereignty.

Furthermore, Ali said that the groundbreaking has the potential to create around 1,500 new jobs and will encourage local economic growth and make a positive contribution to regional income.

"I hope this tin downstream factory can be a catalyst for the transformation of the national tin industry. Let's together realize a more advanced and independent Indonesia through sustainable and highly competitive natural resource management," concluded Ali.