Analyst: Illegal Mining Crackdown Lifts Global Tin Prices

RRI.CO.ID, Jakarta - Executive Director of Indonesia Mining and Energy Watch, Ferdy Hasiman, has attributed the recent surge in global tin prices to Indonesia’s crackdown on illegal mining, citing President Prabowo Subianto’s firm stance in curbing illicit tin supplies to the global market.

Global tin prices surged past USD 51,000 per ton in early 2026. Data from the London Metal Exchange show tin prices ranging between USD 51,325 and USD 56,816 per ton on January 22–23, 2026.

Ferdy said the government’s move to rein in illegal mining, locally known as PETI, has forced tin distribution to go through official channels, reducing supply and driving up prices on the global market.

“Indonesia is the world’s second-largest tin producer. When illegal mines are brought under control, market supply declines, and prices rise,” Ferdy said in a written statement issued in Jakarta on Monday, January 26.

He said such decisive enforcement had become evident only under President Prabowo’s administration. According to Ferdy, Indonesia’s position as the world’s second-largest tin producer gives it significant influence over global prices.

Ferdy noted that years of illegal mining had led to unchecked tin production, resulting in oversupply that suppressed global prices.

“In fact, Indonesia has the ability to influence the market. But for a long time, tin was being sold covertly, which led to excessive supply,” he said.

He hopes the crackdown will be accompanied by firm law enforcement and criminal prosecution, adding that illegal mining causes state losses totaling trillions of rupiah each year.

Ferdy also said the measures would help optimize the performance of state-owned tin miner PT Timah Tbk. “State dividends will increase and contribute to regional economic growth in Bangka Belitung,” he said.

Earlier, President Prabowo reaffirmed his commitment to eradicating illegal mining during the 2026 World Economic Forum, saying the government had shut down at least 1,000 illegal mines across the country.

“To date, we have closed 1,000 illegal mines. However, reports from my staff indicate that at least another 1,000 illegal mines are still operating,” Prabowo said.

The government has also revoked the licenses of 28 companies and seized four million hectares of land used for illegal plantations and mining. “The only way forward is to enforce the law with courage, without compromise or retreat,” said President Prabowo. ​(Gusti Panji/Lasti Martina)