MIND ID Concerned with the Tin Industry Condition in Indonesia

Jakarta, 3 March 2021 - Mining Industry Indonesia, the Holding State Enterprise for the Mining Industry, with members PT ANTAM Tbk, PT Bukit Asam Tbk, PT Freeport Indonesia, PT Inalum (Persero) dan PT Timah Tbk, is hereby expressing its concern at the development of the tin commodity industry and Competent Person In Indonesia.

It is stated in the tin commodity trading system which duly observes the Decree of the Minister of Energy and Mineral Resources No1806 K/30/MEM/2018, that one of the requirements for the ratification of the RKAB (Work Plan and Budget Estimate) is the existence of the reserve balance in a certain Mining Business License Area or WIUP validated by the Competent Person. The reserve balance shall only be made if the company holding the Mining Business License or IUP conducts exploration activities. The Competent Person has a strategic role in validating the reserve balance, therefore, tight control on the accountability and professionalism of the services rendered is required.

CEO of MIND ID Group, Orias Petrus Moedak, stated that "MIND ID is concerned with the condition of the trading system and role as well as supervision of the reports by the Competent Person related to the validation of the reserves. Should there be a violation by the Competent Person, sanctions need to be brought upon that person."

"The Company is certain that improvements to the tin trading system in Bangka Belitung Province will be able to raise the contribution and benefits to a higher extent for the people and country," Orias added.

Throughout 2019, PT Timah Tbk posted a contribution to the state through Non-tax State Revenue (PNBP) of Rp1.1 trillion, consisting of Royalties of Rp 556 billion, Taxes of Rp 393 billion, Land and Building Tax (PBB) of Rp 103 billion, Import Duty of Rp 18 billion and Dividends of Rp 120 billion. Additionally, PT Timah Tbk has employed a large number of workers, whether directly or indirectly, the majority of whom are locals from Bangka Belitung. At this time, it is estimated that about 35,520 workers depend their livelihoods on PT Timah Tbk.

In implementing its operational activities, PT Timah Tbk continually exercises good mining practices and is committed to the compliance of prevailing regulations, in its exploration, production, processing to reclamation and post mining as well as post operations activities.

"MIND ID and PT Timah Tbk are committed to implementing the mandate by the Government, which is to manage strategic mineral resources. Towards that aim, the Company supports the efforts to take action against illegal mining activities together with stakeholders, and drive good governance of the commodity industry trading," said Orias. "The initial step is to immediately coordinate with the Ministry of Energy and Mineral Resources at the central as well as provincial level, as well as with legal enforcement officials," he added.