Tin

Indonesia contributes significantly to the global distribution of tin.  It is the world’s top exporter of tin, second-largest producer after China which contributes to nearly 30% of the world’s refined tin, and also a home to a considerable amount of tin reserves. Indonesia’s tin was first commercially extracted and produced by VOC back in the 18th century. The governance of tin mining in Bangka Belitung was characterized by monopoly and centralization of the management. The profit from the mining was regularly directed to the center at the expense of the local community and government elite. The company signed a contract with the Sultan of Palembang for the monopoly of tin resources. This agreement stated that all tin products from Bangka had to be sold to the VOC with a predetermined price. This marked the introduction of Bangka’s tin to the global economy.

Local people did not have the right to sell their tin in the free market. As an implication, the number of smuggling businesses was increasingly growing as a resistance against the financial loss on the tin miners derived from the monopoly. The price discrepancy between the VOC and the free market was quite high as well, providing more incentives for the furious people to smuggle and sell their tin products to other buyers. 

The monopoly continued during the Dutch colonial period and made tin a strategic, state-controlled commodity. Years following several revolts, traditional elites whose political and economic position was marginalized by the Dutch administration obtained the management of tin mining to the Banka Tin Winning (BTW) under the Dutch government. With BTW in power, managing tin exploitation and enormous profit out of it became prioritized agendas rather than developing the local economy. 

Following Indonesia’s independence in 1945, BTW as a previously Dutch-owned company was nationalized into PN Timah, later PT Timah, with the same monopolistic model. Tin continued to be considered as a national strategic commodity whose exploitation and trade should be controlled by the state. The benefits from the mining continued to flow to the center, leaving the locals with less economic gains. Whoever mines the tin without a license or stores and smuggles tin to outside Bangka without permission, would be punished. The government even deployed military power to protect the mining sites and its activities.