“We estimate the losses from just these six companies at Rp300 trillion,” Prabowo told reporters on Monday in Pangkal Pinang, during the official handover of confiscated assets from illegal mining cases to state-owned miner PT Timah Tbk.
Authorities have seized six unauthorized tin smelters operating within PT Timah’s concession area.
Among the confiscated assets were large quantities of tin and rare earth elements, particularly monazite—a mineral with high strategic and economic value.
“The combined value of the six smelters and seized materials is around Rp6 to Rp7 trillion,” Prabowo said, adding that this figure excludes the full valuation of the rare earth elements, which could be significantly higher. “One ton of monazite can fetch up to US$200,000. We’ve found nearly 40,000 tons.”
Preliminary calculations suggest total state losses from these illegal operations could reach Rp300 trillion, underscoring the scale of economic damage.
President Prabowo reaffirmed the government’s resolve to crack down on illegal mining and resource smuggling, warning that such practices threaten Indonesia’s economic sovereignty.
“This cannot be allowed to continue,” he said.
The crackdown follows a series of enforcement actions. On September 30, Indonesian Army Chief of General Staff Lt. Gen. Richard Tampubolon inspected a seized illegal tin mining site in Bangka Belitung, previously secured by the Forest Area Control Task Force (PKH).
“This visit reflects the government’s determination to combat illegal mining and strengthen natural resource governance,” Tampubolon said in a statement issued by military headquarters on October 2.
Among the sites visited was PT Trinindo Internusa, one of five tin smelters confiscated by the Attorney General’s Office following a final court ruling. The facility will be transferred to the state to ensure its resources benefit the public.
Tampubolon urged companies to comply with mining regulations, warning that illegal operations cause serious harm to both the state and local communities.
Military and local authorities are intensifying enforcement efforts through site inspections and joint task force coordination.
Bangka Belitung holds 91 percent of Indonesia’s tin reserves—2.16 million tons across 496 locations—and approximately 95 percent of the country’s rare earth metal potential, including neodymium, cerium, and lanthanum.
Both tin and rare earth elements are critical to modern industries such as electronics, electric vehicles, wind turbines, and defense technologies.
The six confiscated smelters will be managed by PT Timah in partnership with local communities, ensuring that the region’s resources are utilized transparently and for public benefit.
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Translator: Rahmad Nasution
Editor: Aditya Eko Sigit Wicaksono
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