Indonesian lawmakers back presidential rule for community tin purchases

Indonesia's House of Representatives Commission XII supports a presidential regulation to address the complex issue of community tin purchases in Bangka Belitung. The proposed policy aims to provide a legal framework for state-owned PT Timah to buy tin from local communities, a move deemed necessary due to the company's depleted production quota.

Bambang Patijaya, the deputy speaker of Commission XII from the Golkar Party faction, stated that a Presidential Regulation (Perpres) is crucial to resolve the situation. PT Timah's production quota for the Bangka Belitung region, set at 3,600 tons in its Work Plan and Budget (RKAB), was exhausted by June 2026. Meanwhile, approximately 3,000 tons of community-sourced tin are already stored in PT Timah's warehouses, exceeding the initial quota.

This situation creates a bottleneck, as PT Timah requires more than six months to complete necessary administrative processes, including geological data assessment, feasibility studies, and revised RKAB submissions. Patijaya warned that the delay could reignite tin smuggling and negatively impact the local economy, potentially leading to social unrest. The Perpres would grant PT Timah discretionary power to purchase community tin while these administrative procedures are finalized, offering a temporary solution for one year. The initiative has garnered attention from Coordinating Minister for Legal, Human Rights, Immigration, and Correctional Affairs, Yusril Ihza Mahendra, who has formed a task force to formulate the policy.