Indonesia president says 40 trillion rupiah lost to illegal tin mining every year

INDONESIA is losing about 40 trillion rupiah (S$3.1 billion) annually to illegal tin mining and smuggling, said President Prabowo Subianto on Monday (Oct 20).

The Indonesian leader ordered authorities to step up enforcement earlier this month in islands rich in the metal, which is used in everything from electronics to making glass.

“There are still many illegal mines,” he told reporters.

“The losses are quite significant, estimated at 40 trillion rupiah per year, and this has been going on for almost 20 years.”

Prabowo said the military was involved in operations to stop illegal tin smuggling from the Bangka-Belitung Islands, a hub for the illicit activity.

“Over 20 years, that’s 800 trillion (rupiah). What could we build with that? What kind of country could we build with such resources?” he asked.

Earlier this month, Prabowo visited Bangka-Belitung Islands Province to witness the seizure of assets from tin smelters implicated in a corruption case.

Six smelters were seized in that case and handed over to state-owned mining company Timah.

Prabowo was speaking on Monday at a press conference where the attorney-general also said around US$800 million had been returned to the government’s coffers from palm oil companies; this sum, the president said, were part of huge “state losses”.

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Attorney-General ST Burhanuddin said three palm oil companies had been prosecuted over “economic loss to the state” amounting to 17 trillion rupiah, most of which was being returned.