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Tin Production is Declining, AITI Says Constrained by Rules

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Tin Production is Declining, AITI Says Constrained by Rules

Jakarta, Timerilis.com – Chairman of the Indonesian Tin Industry Association (AITI) Ismiriyadi said the general rules were the problem of the decline in tin production. These rules made companies unproductive because it took time to get a Work Plan and Budget (RKAB).

“Tin production is significantly declining because of the rules. To be honest, the knowledge we have in Competent Person Indonesia (CPI) in mineral studies or material stock studies we only guess, but the reality on the ground is that the production can be, we can only issue an RKAB of 90,000 tons,” said Dodot, Thursday (8/6/2023).

According to data from the Directorate General of Mineral and Coal (Ditjen Minerba) of the Ministry of Energy and Mineral Resources (ESDM), tin mineral production from 2018 to 2022 continues to decline. In 2018 there were 83,000 tons, in 2019 there were 76,400 tons, in 2020 there were 54,300 tons, in 2021 there were 34,800 tons, and in 2022 there were 49,500 tons. Even until the first quarter of 2023, tin production was only 9,500 tons from the target of 70,000 tons.

According to Dodot, the prediction is not following what is implemented, this is proven that Indonesia has produced 100,000 tons of tin which is almost the same as China’s production.

“China is why its production sustainability continues to run 110,000 to 120,000 tons per year. How can they, but we can’t even though we are the second largest producer in the world,” said Dodot.

The industry can currently only follow the RKAB issued by the Ministry of Energy and Mineral Resources, and carry out production according to the current year so that companies can continue to produce and employ their employees.

“(constrained) in the RKAB rules that we submit, because it is not appropriate but we follow, anyway. If we produce a lot, suspicion will arise again, where are the raw materials and all kinds of prejudice, we also slow down. If we get 3000 tons, we divide it by twelve and that’s what we produce, if we push for only a few months how do we want to pay employees,” he explained.

Currently, the Ministry of Energy and Mineral Resources enforces the RKAB rules every year, but this is being compiled by the Ministry of Energy and Mineral Resources to be changed to every three years. Acting Director General of Mineral and Coal Muhammad Wafid agreed with the steps of Commission VII which proposed the implementation of the RKAB every three years.

“It is true what Mr. Maman said earlier, if the RKAB is a year, it is too fast, so the business rolls quickly from that to that. If it becomes three years, it seems appropriate, but later it must be regulated again from the regulation,” said Wafid during a hearing with Commission VII DPR RI, Tuesday (6/5/2023).

Wafid said that the change in this rule could not be determined when it would take effect, as an internal discussion would be held first.

“I will see the internal consolidation first, I haven’t had the time,” he said.

Deputy Chairman of Commission VII DPR RI Maman Abdurahman proposed that to make efficiency in the mining process, the RKAB (need) be changed to once every three years.

“At that time we proposed the RKAB every three years,” said Maman in a meeting with Echelon I of the Ministry of Energy and Mineral Resources at the DPR RI, Tuesday (6/5/2023).

According to him, the Directorate General of Mineral and Coal annually only takes care of a large number of mining RKABs, of course, this interferes with the company’s mining activities.

“Every year your job is to take care of the RKAB. How many RKABs have been withdrawn to the center,” said Maman.

Commission VII of the House of Representatives is ready to support the Directorate General of Mineral and Coal to make changes to the RKAB regulations which were previously applied annually to every three years.

“We, Commission VII, are ready to support. Our performance is to increase state revenue,” he said.

“If the RKAB is every three years and there is a budget system in Minerba, I am sure it will be fast, if the bureaucracy in Minerba is fast, miners will also be fast,” he said. (Eva/Rd)