TIN: Indonesian investment plan requires clarity

Indonesia is increasingly looking to leverage its natural resources to help grow its economy. Dr Robert Leonard Marbun, senior adviser to the Ministry of Investment, explained that the country was aiming to escape the middle-income trap and become the world’s fifth largest economy by 2045. The government is keen to add value to existing markets, including tin, and would consider driving this via export constraints.
To further this goal, a delegation from the Ministry of Investment met with downstream tin companies around the Conference to explore possible collaboration. Feedback from companies indicated that the idea was potentially interesting and would enable more regional supply chains. This has been a particular focus in recent times due to continued global logistics issues.
However, many felt that the timescales suggested by the Ministry of Investment were optimistic. The government is now considering introducing a policy by the end of 2022, rather than the previous deadline of 2024. Any investment would require a strong business case, which may only become viable in the next few years as regional markets expand.
While most delegates agreed that adding value to Indonesian natural resources was the right move for the country, risks remain for both the local Indonesian and the global markets if regulations regarding export constraints did not fully appreciate tin industry dynamics. However, most felt that more clarity around the exact plans is still required.