Timah, Indonesia's state-owned tin mining company, remains optimistic about achieving its 2025 production target of 21,500 tonnes despite facing challenges in the first half of the year. Restu Widiyantoro, Timah's CEO, expressed confidence during a parliamentary session, attributing the company’s strategy to curb illegal mining as a key factor in meeting the target.

Timah is looking to achieve 2025 output targets with new enforcement measures.

In the first half of this year, the company experienced a 32% decrease in tin ore output, amounting to 6,997 tonnes. Additionally, its refined tin production dropped by 29%, totaling 6,870 tonnes. Timah cited several factors contributing to these declines, including the competition from illegal mining, adverse weather conditions, and delays in new mine developments.

To tackle the illegal mining issue, Restu Widiyantoro highlighted the establishment of a task force focused on combating illegal mining activities in Bangka and Belitung Islands, which are key tin-producing regions. The task force will also address intermediaries involved in the trade of illegally mined ore, aiming to curb illegal operations and improve industry governance.

Indonesia, which is the second-largest global producer of tin after China, continues to struggle with illegal mining, which often undermines efforts to regulate the sector. The Indonesian government has been taking steps to address this challenge, including a policy that mandates the trading of refined tin through exchanges to ensure traceability and prevent unregulated production.

Earlier in March, the Indonesian Mining Association raised concerns regarding the government’s plan to increase royalty rates for mining products. The association argued that the rising operational costs and cash flow constraints faced by miners made the royalty increase a difficult proposition. This response came in reaction to the government’s intention to boost industry governance by increasing royalties from mining companies, aiming to better regulate the sector.

Despite these challenges, Timah remains committed to its 2025 production goals, continuing its focus on addressing illegal mining and ensuring that its operations are more efficient and transparent. The company’s efforts to secure a stable, traceable market for tin will be pivotal in achieving its long-term growth objectives while contributing to Indonesia’s broader mining industry reforms.