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Answering the Nation’s Aspirations, PT Timah Tbk Strengthens Downstreaming for a Sovereign Indonesia

BANGKA BELITUNG -- Downstreaming has become one of the nation’s strategic agendas to increase the added value of natural resources, create inclusive economic growth and job opportunities, and promote social justice. As part of the state-owned enterprises that play a vital role in the national tin industry, PT Timah Tbk continues to strengthen its commitment to implementing downstreaming programs.

PT Timah remains committed to accelerating concrete steps in carrying out downstreaming. As a member of the Indonesia Mining Industry Holding MIND ID, the company has carried out downstreaming by producing tin ingots and no longer selling tin ore.

PT Timah Tbk’s downstreaming commitment continues with the establishment of its subsidiary, PT Timah Industri, which focuses on developing tin downstreaming by processing tin ingots into various products such as tin solder, tin solder powder, and tin chemicals.

From the beginning, PT Timah Industri has viewed downstreaming not merely as an obligation but as a strategic path to add value to the nation’s natural resources. This initiative aligns with the nation’s aspirations to process domestic natural wealth, create jobs, and enhance the competitiveness of national industries.

In 2009, PT Timah Industri built a tin stabilizer plant, marking the company’s first serious step into processing downstream tin products. In 2010, the company built a tin chemical plant producing Methyltin Mercaptide, and in 2011 the tin chemical plant was officially operational, expanding the downstream portfolio and opening new market opportunities.

This commitment did not stop there. In 2015, the company took another major step by building plants for SnCl? (Stannic Chloride) and DMT (Dimethyltin Dichloride). These facilities became important milestones in deepening Indonesia’s tin-based chemical industry supply chain.

PT Timah Industri’s persistence is evident in its ongoing innovations. In 2021, the company launched several variants of tin stabilizer products, not only meeting domestic market demands but also carrying strong export potential.

The latest leap came in 2024, when PT Timah Industri began constructing a tin solder powder plant, a strategic material used across industries ranging from electronics to advanced materials.

Today, PT Timah Industri produces various tin solder products, including tin bars, tin wires, and tin solder powder. Meanwhile, its tin chemical derivatives include Stannic Chloride under the Bankastannic brand, as well as Organotin products such as Methyltin Mercaptide and Mercaptide Chloride.

With support from PT Timah Tbk, PT Timah Industri now operates five downstream production plants: the Stannic Chloride Plant with a capacity of 3,000 tons per year, used as a chemical precursor for the glass, catalyst, and stabilizer industries; the Tin Intermediate Plant with a production capacity of 8,000 tons per year for solar panels, electrical cables, and heat-resistant building materials; and the Tin Stabilizer Plant with a capacity of 10,000 tons per year for the automotive industry, PVC pipe stabilizers, and construction. PT Timah Industri also operates a tin solder plant with a capacity of 2,000 tons per year and a solder powder plant with a capacity of 100 tons per year.

The downstream products produced by PT Timah Industri have also penetrated global markets, with export destinations including India, China, Malaysia, the Middle East, Thailand, Korea, and Singapore.

PT Timah’s downstreaming efforts align with President Prabowo’s Asta Cita agenda to continue downstreaming and with government policies to reduce raw mineral exports and encourage exports of value-added products.

PT Timah Tbk’s President Director, Restu Widiyantoro, stated that tin downstreaming is a concrete effort by the company to ensure that the country’s tin resources provide maximum benefit for the nation.

“Downstreaming is not only about business, but about ensuring that our natural resources bring prosperity to the people, strengthen national sovereignty, and build economic independence,” he said.

Restu added that by strengthening downstreaming, PT Timah not only contributes to state revenue through taxes and non-tax state income but also supports the sustainability of natural resources through responsible mining practices.

“The momentum of the 80th Anniversary of the Republic of Indonesia, carrying the theme ‘United, Sovereign, Prosperous People, Advanced Indonesia,’ serves as both a reminder and a driving force for PT Timah to accelerate concrete steps in downstreaming. Downstreaming is not only about increasing product value but also about economic independence, community empowerment, and industrial sustainability,” said Restu.

Consistency in implementing downstreaming proves that PT Timah Industri is not simply following a trend but is pioneering a transformation of Indonesia’s tin industry from a mere exporter of raw materials to a producer of high-value products that can compete in the global market.