President Director of State miner PT Timah, Restu Widiyantoro, has acknowledged that the state-owned mining company is facing serious difficulties in curbing illegal mining activities, which have intensified significantly across its operational areas following a high-profile corruption case involving several individuals, including Harvey Moeis.

“Currently, most of the company's operational areas are no longer directly controlled by PT Timah. We recognize this, and it’s something we must address moving forward,” Restu said during a hearing with Commission VI of the Indonesian House of Representatives in Jakarta, as quoted by Antara, on Wednesday, May 14, 2025.

According to Restu, the majority of mining operations surrounding PT Timah’s concession areas are illegal. However, since many of these operations involve local communities, enforcement actions have been challenging.

To address the issue, PT Timah is exploring alternative operational methods, including working through cooperatives.

As of April 2025, PT Timah has identified:

● 175 illegal mining cases on Bangka Island’s mainland,

● 890 cases in Bangka’s offshore waters, and

● 110 cases on Belitung Island.

Restu outlined several enforcement measures taken so far, such as:

● Sinking hundreds of illegal mining barges,

● Forcibly removing miners from concession areas,

● Hauling pontoons ashore,

● Dismantling illegal mining equipment, and

● Handing perpetrators over to local police.

Despite these efforts, he pointed to internal challenges that require broader support, particularly in regulatory aspects. One of the major issues, he noted, is land overlap within PT Timah’s mining permit areas (WIUP), where some regions fall under production forest zones, making them inoperable under current regulations.

These overlapping claims impact approximately 31 percent of PT Timah’s licensed areas, limiting the company’s ability to form partnerships or utilize the land effectively.

Restu urged Commission VI of the House to support the creation of new regulations aimed at suppressing illegal mining, including a mandate requiring all mining output from PT Timah’s licensed areas to be channeled back to the company.

In addition to the growing number of illegal operations, Restu said the recent corruption scandal has severely affected employee morale and performance at PT Timah.

“Employee morale and performance at PT Timah have plummeted. There’s a growing sense of disillusionment within the workforce, a belief that management and leadership are unable to carry out their duties properly,” he said.

The combined pressure from legal uncertainty, illegal operations, and internal demoralization presents a critical challenge for PT Timah as it seeks to regain control over its assets and restore confidence in its operations.