The Indonesian Tin Exporters Association (AETI) revealed that tin smuggling in Indonesia has become widespread. One example is the smuggling of tin from Indonesia to Malaysia, valued at approximately IDR 45-47 trillion.

AETI Chairman, Harwendro Adityo Dewanto, stated that the amount of tin smuggled to Malaysia is estimated at 12,000 tons per year, based on information obtained directly from industry partners in Malaysia.

In various international forums, Malaysia acknowledged receiving tin supplies from Indonesia at a rate of 1,000 tons per month. “Malaysia itself admitted that it receives tin ore from Indonesia at 1,000 tons monthly. Converted to ingots, this equals about 12,000 tons per year, valued at roughly IDR 45-47 trillion at current tin prices,” he explained to CNBC Indonesia during the Mining Zone program, cited Wednesday (October 1, 2025).

This illegal activity not only causes losses in state revenue but also directly affects the domestic tin industry. Many legitimate exporters feel disadvantaged due to unfair competition from products smuggled through illegal channels.

Harwendro noted that since early 2025, the frequency of smuggling has increased. The illegal operations are conducted systematically, structurally, and covertly, making it difficult for legal businesses to detect them.

“They carry out these activities systematically, structurally, and secretly, so none of us are aware that this is happening,” he added.

Nevertheless, the issue of tin smuggling has drawn the attention of President of Indonesia, Prabowo Subianto, which has also positively impacted domestic tin production.

“Now the effect is very positive. Tin production in Indonesia has increased, even though PT Timah’s performance is declining, overall production is good,” he emphasized.

Previously, President Prabowo highlighted the rampant illegal tin smuggling from Bangka Belitung to overseas, estimating that nearly 80% of the region’s tin production is smuggled.

“Almost 80% of tin output is smuggled through various routes, including ships and ferries. Currently, even small boats cannot go out,” Prabowo stated, cited Tuesday (September 30, 2025).

He considers this a form of systemic plundering due to previous elite negligence, which has eroded national wealth. Bangka Belitung, known as a major global tin mining hub, has around 1,000 illegal mines operating.

Therefore, Prabowo ordered the Indonesian Military (TNI), Police, and Customs to carry out large-scale operations. “Starting September 1, I instructed a major operation in Bangka Belitung to close illegal mines, as nearly 80% of tin was being smuggled,” he said.

In addition to tin, the President emphasized that illegal nickel, coal, and bauxite mines are also widespread. “Almost all sectors have numerous illegal mines. I have ordered these to be regulated, cleaned up, or taken over by the state. If enforced, insya Allah state revenue will increase, leakages will be closed, and the country will prosper,” Prabowo concluded.