Indonesia eyes tin chemicals to replicate nickel downstream success

Jakarta (ANTARA) - The Investment and Downstreaming Ministry/Investment Coordinating Board (BKPM) is actively promoting the further downstream processing of tin into tin chemicals to supply the manufacturing sector and expand industrial applications.

Speaking on the sidelines of the Indonesia Multistakeholder Critical Minerals Forum 2026 in Jakarta on Thursday, Deputy for Strategic Investment Downstreaming at BKPM Heldy Satrya Putera emphasized that processing must extend beyond basic commodities like tin solder.

"We want to see the development of tin chemicals. These are required for the bottle manufacturing industry, as well as for other equipment that incorporates tin," Heldy stated.

Indonesia holds the world’s second-largest tin reserves, accounting for approximately 16.3 percent of the global total.

Officials believe that leveraging these abundant raw materials can propel Indonesia's electronics industry into a globally competitive powerhouse capable of outpacing peer nations.

Heldy pointed to the remarkable success of nickel downstreaming, which successfully established a domestic electric vehicle (EV) battery ecosystem.

"Everyone talks about nickel; it is frequently cited as a prime example. I hope that tin can follow a similar path," he added.

On the operational front, state-owned tin miner PT Timah recorded strong production figures in the first half of 2026, with tin ore output reaching 12,232 tons of Sn—a 75 percent increase year-on-year. Refined tin metal production also rose 58 percent to reach 10,865 metric tons.

Nationwide, investment data released by Investment and Downstreaming Minister/Head of BKPM Rosan Roeslani showed that total realized investment through September 2026 reached Rp1,539.2 trillion (approximately US$85.04 billion), creating 2.19 million new jobs.

Investments specifically directed toward downstreaming between January and September 2026 touched Rp480 trillion (US$26.52 billion).

The mineral sector spearheaded these contributions at Rp335.1 trillion (US$18.51 billion)—encompassing nickel, bauxite, iron and steel, copper as well as silica sand.

Other leading downstream contributors included the plantation and forestry sector at Rp83.6 trillion (US$4.62 billion), oil and gas at Rp54 trillion (US$2.98 billion), and the fisheries and marine sector at Rp7.3 trillion (US$403.3 million).

Significantly, 78 percent of total downstream investments were realized outside of Java, underscoring equitable regional development.

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Translator: Putu Indah Savitri, Yashinta Difa
Editor: Rahmad Nasution
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