This Commodity Can Bring 6 Times Profit

Indonesian President Joko Widodo (Jokowi) has recently emphasized that he will stop tin exports abroad. This is to develop tin downstream which is known to have only reached 5%. The plan is certain to bring export profits from downstream tin up to 6 times.

According to cnbcindonesia.com, The Ministry of Energy and Mineral Resources noted that the ban on tin exports led to the type of Tin Ingot 99.99% or Sn 99.99. This was said directly by the Special Staff of the Minister of Energy and Mineral Resources for the Acceleration of Mineral and Coal Governance, Irwandy Arif.

“The export ban has led to Tin Ingot, which is already 99.99%. We have not been allowed to export tin ore for a long time. The problem is the interpretation of tin ingots, the President’s desire for the industry to go further downstream, Tin Soldier, Tin Plate, Tin Chemical,” said Irwandy to CNBC Indonesia for the Mining Zone (26/10/2022).

The ban on the export of tin of this type has not yet been enforced. However, the government is currently forming a Tin Working Group team to analyze the results of the tin downstream plan. Irwandy also explained that President Jokowi was waiting for the results of the Tin Working Group. He also asked them to finalize the results of the discussion on the export ban within 1 month.

Through the tin downstream plan, Irwandy concretely illustrates that Indonesia can benefit from the industry 6 times. With 1 ton of 78% tin concentrate, the price will reach US$ 12,000 per ton (2021). If it has turned into 1 ton of crude tin, the price will be US$ 22,000. Then, if it has turned into 1 ton Tin Soldier, the price can reach US$ 124,000 per ton.

“The 1 ton of Sn in 1 ton of Soldier becomes US$ 130,000. This means that there is an increase of almost 6 times compared to the tin concentrate at the beginning. This is very influential for the Indonesian economy,” said Irwandy.