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New tracking system to prevent fraud in nickel, tin mining
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Smoke rises from a nickel smelting facility belonging to Virtue Dragon Nickel Industry in Konawe, Southeast Sulawesi, on Sept. 21, 2022. (AFP/Andry Denisah)
T
he government has launched an online tracking system for nickel and tin shipments to increase state revenue and improve governance in the mining sector.
Already implemented for coal shipments since 2022, the Mineral and Coal Information System (Simbara) has now been expanded to encompass nickel and tin and is to be applied to other metallic minerals in the future.
Resource-rich Indonesia is the world’s biggest producer of nickel and one of the largest producers of tin. Simbara will enable the government to track the supply of nickel and tin from mines to domestic smelters.
Finance Ministry Budget Director General Isa Rachmatarwata said the government had launched the online tracking system for nickel and tin shipments given the two commodities’ increasingly strategic role in national and global economic development.
“This is to continue the successful [implementation of] Simbara for coal. Today, we begin expanding the use of Simbara to nickel and tin, both of which are increasingly [important] for the national economy,” he said during the Simbara launch ceremony broadcast live on Monday.
He went on to say that the system’s implementation for coal had prevented illegal mining and increased state revenue collected from the sector.
Indonesia’s mined nickel production jumped from under 800,000 tonnes in 2019 to 1.8 million tonnes in 2023, when it accounted for 50 percent of global output, according to data from the United States Geological Survey (USGS).
