TEMPO.CO, Jakarta - Indonesia's Central Statistics Agency, BPS, said that the government's plan to stop exporting tin next year would cause negative impacts. The policy is seen as having the potential to affect Bangka Belitung's economic growth.

Oktarizal, the coordinator of the regional balance sheet function and statistical analysis at Bangka Belitung's BPS Office, said that tin has a significant role as the province's main economic supporter.

"Tin ore mining accounts for 63.61 percent of business fields in Bangka Belitung. As for the Regional Gross Domestic Product, mining contributes 6.07 percent," Oktarizal told reporters in Bangka Belitung, Thursday, July 28.

In the processing sector, said Oktarizal, the tin base metal industry carried out by smelter companies and PT Timah contributed 46.13 percent. To the GRDP, the contribution is 9.60 percent.

"The total Regional GDP contribution by tin ore mining and the base metal processing industry is 15.67 percent. If tin exports are prohibited, that's how much the Regional GDP would be affected," he said.

If the government pushes through with the export ban policy, said Oktarizal, by now the construction of downstream factories as processing tin raw materials must begin.

"The government must also think about how to make downstream goods sold. The question is, [are domestic industries] ready to absorb the unexported tin products?"

Oktarizal said that another aspect to consider before banning tin export is the recent situation concerning CPO. The CPO export ban some time ago had quite a rough effect on the people's economy. And a tin export ban might do the same.

Servio Maranda (Contributor)

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