Tin Production will Drop, Association Says

TEMPO.CO, Jakarta - Jabin Sufianto, Chairman of the Indonesian Tin Exporter Association (AETI), predicted that the country's tin production will slide below 70,000 tons in 2015. Jabin explained that the decrease will be caused by the Trade Minister Regulation No. 33/2015, which limits export. "Tin production will be back just like three years ago," Jabin said to Tempo on Thursday, May 21, 2015.

However, Jabin hoped that the export restrictions will reduce the amount of global tin supply and resulted in increased tin prices. Jabin added that currently, tin prices are dropping as supplies continue to pile up.

Data from the Commodity and Derivatives Exchange (BKDI) stated that the average price for tin in the first quarter of 2015 was US$19,320 per ton, lower compared to the price in 2014, which reaches up to US$23,000 per ton.

The Trade Ministry recently issued Trade Minister Regulation No. 33/M-Dag/Per/5/2015 (Regulation), which amends Trade Minister Regulation No. 44/M-Dag/Per/7/2014 on Tin Export Provisions.

Trade Minister Rachmat Gobel explained that the Regulation changes the categories of tin that can be exported from three four categories to three categories. In addition to the smaller number of tin categories, the Regulation also stipulates a provision on mandatory clean and clear certificates for exported tin. The Minister said that the certificate was intended to track the origin of the tin ores.

Meanwhile, Industrial Minister Saleh Husin hoped that the new regulation could reduce the number of illegal tin export in Indonesia.

PINGIT ARIA | AMIRULLAH