PANGKALPINANG – Efforts to improve national tin governance continue to be intensified. As a state-representing tin mining company, PT Timah is actively implementing various initiatives to support these governance reforms.
One of these initiatives is the Coordination Meeting on the Governance Plan for Partnership Cooperation in Tin Commodity Mining in the Bangka Belitung Islands Province, initiated by the Attorney General’s Office of the Republic of Indonesia.
The meeting was attended by Acting Director IV of the Attorney General’s Intelligence Division, Irene Putri; PT Timah’s management; representatives from the Bangka Belitung Provincial Government, including Acting Regional Secretary Fery Afriyanto; Bangka Belitung Chief Prosecutor Teguh Darmawan; district prosecutors; and the regents of Bangka Belitung, on Monday (3/2/2024).
Acting Director IV of the Attorney General’s Intelligence Division, Irene Putri, stated that the meeting addressed two main topics: PT Timah’s partnership with community groups within PT Timah’s mining license area (IUP) and the status of independent miners operating outside of PT Timah’s IUP.
"This meeting is a continuation of previous discussions. There are two major issues in Bangka Belitung—ensuring that the people of Bangka Belitung benefit from their natural resources and establishing partnerships with PT Timah under proper governance principles," she explained.
She emphasized that local governments are expected to propose community groups that could collaborate with PT Timah, either through cooperatives or village-owned enterprises (BUMDes).
"Following the signing of the MoU, the partnership will be formalized. The local government will facilitate the selection of eligible community groups for collaboration with PT Timah, ensuring compliance with good corporate governance (GCG)," she added.
The establishment of such partnerships aims to prevent potential state losses and reduce illegal mining activities in Bangka Belitung. The initiative will also be supervised by local prosecutors at the district level.
Director of Business Development at PT Timah Tbk, Dicky Octa Zahriadi, stressed the importance of improving governance, particularly in partnerships. As a state-owned enterprise (BUMN), PT Timah is mandated to generate profits for the country while also supporting local communities.
"This initiative is strategically vital for improving community welfare. Through coordination and collaboration among all stakeholders, we can work toward the shared goal of benefiting society while also contributing to state revenue," he said.
Acting Regional Secretary of Bangka Belitung, Ferry Afriyanto, expressed appreciation for the coordination meeting, recognizing its role in boosting the local economy.
He noted that forging partnerships with local communities could reinvigorate the economy, provided that such collaborations adhere to legal frameworks.
"Currently, 30% of Bangka Belitung’s Gross Regional Domestic Product (GRDP) is still driven by the mining sector. We need to ensure that mining is conducted within legal boundaries while also delivering tangible benefits to the community and upholding environmental responsibilities," he explained.
Mining Law and Governance Expert, Dr. Firdaus Dewilmar, S.H., M.Hum., CGCAE, highlighted that PT Timah has taken serious and comprehensive steps toward governance reforms, including seeking advisory support from the Attorney General’s Office.
"These reforms have been initiated by PT Timah’s board of directors and MIND ID, through strategic engagement with local governments, ministries, and relevant agencies. Various consultations and focus group discussions (FGDs) have been conducted, involving multiple stakeholders and experts," he said.
He emphasized that PT Timah must position local communities within its IUP as strategic partners to create job opportunities.
"The short-term focus should be on formalizing community partnerships for mining activities, both on land and along the coast, particularly within PT Timah’s IUP. This will help address social tensions while also aligning with the issuance of Community Mining Zones (WPR) by the Ministry of Energy and Mineral Resources," he explained.
Furthermore, he noted that PT Timah’s governance reforms should be framed within broader institutional transformation efforts. These reforms align with the company’s long-term vision of becoming a globally competitive tin mining enterprise while supporting the government’s Asta Cita development agenda.
Governance improvements will encompass policy refinement, organizational restructuring, and enhanced human resource capabilities.
"These measures aim to develop a more adaptive, innovative, and competitive system while ensuring that all business decisions adhere to the Business Judgment Rule and GCG principles," he concluded. (*).
