Prabowo Supervises Transfer of US$427 Million Confiscated Assets to PT Timah

October 7, 2025

Pangkalpinang, Indonesia – President Prabowo Subianto presided over the handover of state-confiscated assets valued at approximately Rp7 trillion (US$427 million) to PT Timah, a state-owned tin mining company, on monday, October 6, 2025. this action represents one of the largest recoveries tied to unlawful mining operations in the nation’s history.

Scale of the Illegal Mining Operation

Addressing the event at the tinindo Internusa smelter,President Subianto underscored the extensive financial damages resulting from years of unregulated mining,particularly in the Bangka Belitung Islands. He revealed that losses attributed to just six companies amounted to around Rp300 trillion, and vowed to halt such practices. The President emphasized that the recovered assets represent only a portion of the total losses incurred.

Notably, the recovered assets do not encompass potential value from deposits of rare earth minerals, which authorities believe could surpass the worth of the reclaimed tin-related possessions.

Asset Handover Details

attorney General ST Burhanuddin formally transferred Rp1.45 trillion (US$88 million) in seized assets to PT Timah during the ceremony. The event was attended by prominent figures, including Defense Minister Prabowo Subianto, Cabinet members, the Commander of the Indonesian Military (TNI), the National Police Chief, and local government officials.

The seized properties encompass six smelters, 108 pieces of heavy machinery, 195 mining implements, 680.6 tons of refined tin, and 22 land parcels spanning 238,848 square meters.

“These assets now legally belong to the state, represented by PT Timah, and will be utilized to rehabilitate and reinforce the legitimate tin supply network,” Burhanuddin stated. The Attorney General’s Office is also preparing to auction off additional confiscated items.

Corruption Inquiry and Charges

The ongoing investigation into alleged corruption surrounding illegal tin mining within PT Timah’s concession areas has led to charges against 22 individuals and five corporate entities. These include CV Venus Inti Perkasa, PT Sariwiguna Bina Sentosa, PT Stanindo Inti Perkasa, PT Refined Bangka Tin, and PT Tinindo Internusa.

Defendant Type	Number
Individuals	22
Companies	5

Burhanuddin confirmed a close collaboration between the Attorney General’s Office and the TNI to trace and reclaim assets associated with this “systemic and deeply rooted” illegal mining network. He stated this recovery represents a reclaiming of national sovereignty over valuable natural resources.

Rehabilitation and Future Operations

PT Timah President Director Restu Widyantoro announced that the company intends to reactivate the six confiscated smelters in early 2026, pending extensive technical evaluations and rehabilitation efforts. He noted the smelters had previously been sealed by prosecutorial authorities.

The company has already begun stockpiling tin ore to support a steady production flow once the smelters are operational, aiming to fortify Indonesia’s tin supply chain and promote increased exports. PT Timah, a subsidiary of the state mining holding company MIND ID, is a major player in the global tin market and is central to government efforts to enhance oversight of tin exports and increase downstream processing.

“With President Prabowo’s guidance, we’re optimistic about expanding domestic production and ending illegal mining practices for good,” Widyantoro remarked.

Indonesia’s Tin Industry: A Broader Context

Indonesia ranks among the world’s top tin producers, with the Bangka Belitung islands being a crucial source of the metal. However, the region has faced longstanding challenges with illegal mining, leading to environmental damage, revenue loss, and social disruption. The Indonesian government has recently increased regulatory rigor and enforcement efforts, mirroring a global trend towards greater accountability in the mining sector. In 2023, the country exported approximately 81,000 metric tons of tin, generating billions in revenue, according to data from the Ministry of Trade. This recent asset recovery signals a serious endeavor to protect this crucial industry.

Did You Know? Tin is a critical component in modern electronics, including smartphones, laptops, and LED lighting. Demand for tin is anticipated to rise with the growth of the electric vehicle market,where it is used in soldering and battery technology.

Pro Tip: Investors seeking exposure to the metals & mining sector should carefully evaluate companies’ ESG (Environmental, Social, and Governance) performance, particularly regarding responsible sourcing and community engagement.

Frequently Asked Questions About Indonesian Tin Mining

• what is the importance of the asset recovery? The recovery represents a major step towards curbing illegal tin mining and restoring state control over valuable natural resources.
• What is PT Timah’s role in this process? PT Timah, as a state-owned enterprise, will utilize the recovered assets to strengthen the legal tin supply chain and boost production.
• How extensive was the illegal mining network? Authorities describe the network as “systemic and deeply rooted,” indicating a long-standing and pervasive issue.
• What charges are the individuals and companies facing? They are facing charges related to corruption and illegal mining operations within PT Timah’s concession areas.
• What is Indonesia doing to prevent future illegal mining? The government is increasing regulatory oversight, strengthening enforcement, and pursuing legal action against those involved in illicit activities.
• What is the estimated annual value of the tin sector in Indonesia? The lucrative tin sector is estimated to be worth hundreds of trillions of rupiah annually.
• When will the confiscated smelters be operational again? PT Timah aims to begin operating the six confiscated smelters in early 2026.

Do you believe this crackdown will effectively curb illegal mining in Indonesia? Share yoru thoughts in the comments below!

What legal justifications were used for the asset confiscation related to the illegal tin mining case?

Background of the Confiscated Assets

On October 7,2025,Indonesian Defense Minister Prabowo Subianto oversaw the official transfer of US$427 million in assets confiscated as part of investigations into alleged illegal tin mining activities. These assets are now being handed over to PT Timah Tbk, a state-owned enterprise and a major player in indonesia’s tin industry. The handover signifies a key step in the Indonesian government’s efforts to combat illegal mining and bolster the national economy. This transfer follows extensive legal proceedings and asset tracing related to the case.

Details of the asset Transfer

The US$427 million represents funds and assets seized from individuals and entities implicated in unlawful tin mining and trading practices. The specifics of the confiscated assets include:

* Financial Assets: Approximately US$380 million held in various bank accounts.

* Real Estate: Properties valued at around US$30 million located in key mining regions.

* Mining Equipment: Heavy machinery and equipment used in illegal mining operations, estimated at US$17 million.

The transfer ceremony, held in Jakarta, was attended by representatives from the Indonesian Ministry of Finance, the Attorney General’s office, PT Timah’s management, and law enforcement officials.prabowo emphasized the government’s commitment to enforcing the law and ensuring responsible resource management.

PT Timah’s Role and Future Plans

PT Timah tbk is expected to utilize the transferred assets to:

1. Modernize Operations: Invest in advanced mining technology and infrastructure to improve efficiency and sustainability.
2. Expand Production: Increase tin production capacity to meet growing global demand.
3. Community Development: Allocate funds for social and economic development programs in mining communities.
4. Environmental Remediation: Implement environmental restoration projects to address the damage caused by illegal mining.

This influx of capital is anticipated to significantly strengthen PT Timah’s position in the global tin market and contribute to Indonesia’s economic growth. The company plans to publish a detailed report outlining its investment strategy within the next quarter.

Legal Framework and Investigations

The asset confiscation and transfer are rooted in ongoing investigations into widespread illegal tin mining, particularly in the Bangka Belitung Islands. The investigations, led by the Indonesian Attorney General’s Office, have uncovered a complex network of individuals and companies involved in illicit activities.

Key legal provisions utilized in the case include:

* law No. 4 of 2009 concerning Mineral and Coal Mining: This law regulates mining activities and establishes penalties for violations.

* Law no. 8 of 2010 concerning Prevention and Eradication of Criminal Acts of Money Laundering: This law addresses the financial aspects of illegal mining and allows for asset confiscation.

* Criminal Code provisions related to theft and fraud: Used to prosecute individuals involved in the illegal extraction and sale of tin.

Impact on Indonesia’s Tin Industry

Indonesia is one of the world’s largest producers of tin, a critical metal used in electronics, packaging, and othre industries.Illegal mining has long been a challenge, causing environmental damage, economic losses, and social unrest.

The transfer of confiscated assets to PT Timah is expected to have several positive impacts:

* Increased Revenue for the State: PT Timah, as a state-owned enterprise, will generate higher profits, which will contribute to government revenue.

* Reduced Illegal Mining: The crackdown on illegal mining and the strengthening of PT Timah’s position will discourage illicit activities.

* Improved Environmental Sustainability: Investments in environmental remediation will help restore damaged ecosystems.

* Enhanced Transparency and Accountability: The legal proceedings and asset transfer demonstrate the government’s commitment to transparency and accountability in the mining sector.

Challenges and Future Outlook

Despite the positive developments,challenges remain. Continued monitoring and enforcement are crucial to prevent the resurgence of illegal mining. Strengthening coordination between law enforcement agencies, regulatory bodies, and PT Timah is essential.

Looking ahead, the Indonesian government is expected to:

* Implement stricter regulations: Introduce more stringent regulations for tin mining and trading.

* Promote responsible mining practices: Encourage the adoption of enduring mining practices.

* Invest in technology: Utilize technology to monitor mining activities and detect illegal operations.

* Engage with local communities: Foster collaboration with local communities to ensure that mining activities benefit them.

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