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Govt plans to raise tin royalty, ban ingot exports
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Unlicensed miners work at a tin mining siting in Toboali, on the southern shores of the island of Bangka in Bangka Belitung Islands, on April 29, 2021. Miners working on land have to deploy expensive machinery to dig deeper for tin ore as reserves dwindle. (Reuters/Willy Kurniawan)
T
he government plans to raise the royalty on tin in a bid to gain more revenue amid surging commodity price, the Energy and Mineral Resources Ministry said on Tuesday.
In doing so, the government will replace the previous flat royalty of 3 percent of the selling price – based on Government Regulation No. 81/2019 – with a progressive rate that increases with higher prices obtained by producers.
“We are discussing this, running price simulations so that our country can acquire more revenue,” Ridwan Djamaluddin, the ministry’s coal and mineral resources director general, told lawmakers in a hearing with House of Representatives Commission VII, which oversees energy, mining, industry and research.
“Businesses will see lower revenue, but the drop will not be too significant. We will find the middle ground for stakeholders."
Read also: Indonesia to formulate grand strategy for nickel industry
The price of tin skyrocketed during the COVID-19 pandemic as supplies were unable to keep up with rapidly rising demand.
It hit an all-time high of US$49,500 per ton on March 5, before cooling down to $30,800 per ton on Tuesday.
