PT Timah Tbk profits surge following illegal mining crackdown

PT Timah Tbk (TINS) reported a significant surge in financial performance during the first half of 2026, driven by government efforts to crack down on illegal mining and smuggling in Bangka Belitung. The company's net profit attributable to owners jumped to Rp2.71 trillion, a more than ninefold increase compared to Rp300.07 billion in the same period the previous year.

Revenue grew by 146.9% to Rp10.42 trillion, while operating profit rose to Rp3.46 trillion. This growth was supported by a 75% increase in tin ore production, reaching 12,232 tons, and an 85% surge in tin metal sales volume. The operational improvements follow an instruction from President Prabowo Subianto to secure national strategic reserves by targeting approximately 1,000 illegal mines and closing smuggling routes through operations involving the military, police, and customs.

Analysts note that the crackdown is helping transition tin activities from the shadow economy back into the formal supply chain. Previously, illegal mining was a major challenge, with estimates suggesting the shadow sector could account for up to 80% of production in Bangka Belitung. The normalization of the supply chain, combined with rising global tin prices driven by demand in the semiconductor and artificial intelligence sectors, provides a positive outlook for the company.