Indonesia weighs tin export halt to boost downstreaming

By Romel S. Gurky

Indonesia is reviewing a potential halt to tin exports as part of a broader push to deepen downstream processing and strengthen the domestic economy, Energy and Mineral Resources Minister Bahlil Lahadalia said.

Speaking at the Indonesia Economic Outlook in Jakarta, Bahlil said the government is studying a ban on raw tin shipments, following earlier restrictions on nickel ore and bauxite exports. The policy is aimed at replacing raw commodity exports with higher value processed products produced at home.

 “Going forward, we will review several other commodities, including tin. We should no longer export raw materials. Investors are welcome to build downstream industries domestically,” Bahlil said.

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He cited the nickel ore export ban introduced in 2018 and 2019 as evidence of the policy’s impact. Nickel export value rose from about $3.3 billion before the ban to around $34 billion in 2024, a tenfold increase within five years, he said, attributing the growth to expanded smelting and processing capacity.

President Prabowo Subianto has designated 18 downstream projects as national priorities for 2026, with total planned investment of Rp618 trillion. The projects span bauxite and nickel processing, coal gasification and oil refining, and are expected to begin this year.

Bahlil said the downstream program is designed to support import substitution and create a captive domestic market. He called on national investors and banks to participate in financing strategic projects, warning against leaving value added gains to foreign players.

Editing by Alexander Ginting