Pros and Cons of Responding to the Government's Plan to Manage Smelters Confiscated by Tin Corruption

Managing five smelters seized by tin cases can be beneficial for the economy, but can also create new problems.

KOMPAS/ADRIAN FAJRIANSYAH

The atmosphere of the press conference following the cross-sector coordination meeting regarding the follow-up actions on the seizure of five tin smelters on Bangka Island, Tuesday (23/4/2024), at the Bangka Belitung Governor's office in Pangkal Pinang, Bangka Island.

PANGKAL PINANG, KOMPAS — The government's plan to manage five smelters or processing facilities for tin mining products confiscated by cases of alleged corruption in tin management in the PT Timah 2015-2022 mining business permit area raises pros and cons in the community . Some think it is important to revive economic activity. Others believe that this will create new problems because there has been no final legal decision on the case.

After a cross-sector coordination meeting discussing the follow-up to the confiscation of five tin smelters on Bangka Island, Tuesday (23/4/2024), at the office of the Governor of Bangka Belitung , Pangkal Pinang, Bangka Island, Head of the Attorney General's Asset Recovery Agency, Amir Yanto, said that all relevant agencies have agreed to manage the five smelters confiscated in corruption cases with a state loss of IDR 271 trillion. Management will be handed over to the Ministry of State-Owned Enterprises (BUMN).

Also read: Disclosure of Tin Corruption Doesn't Stop Illegal Mining in Babel

The purpose is to anticipate the decline in asset value and save the workers involved. These smelters have high asset values. If left unused, the asset value will drastically decrease until it becomes a pile of scrap metal. In addition, if left abandoned, it will have a more severe negative effect on the Bangka Belitung economy because around 30 percent of the community's livelihoods come from tin.

Based on data compiled by Kompas, the five smelters are CV VIP in the form of a plot of land covering an area of ​​10,500 square meters, PT SIP in the form of several lands with a total area of ​​85,863 square meters, PT TI in the form of several lands (84,660 square meters), and PT SBS in the form of several lands (57,825 square meters). The four smelters are in Pangkal Pinang. Finally, PT RBT is a plot of land and several heavy equipment in Bangka Regency.

DOK/PUSPENKUM KEJAKSAAN AGUNG

The suspect Tamron alias Aon (TN/AN) as the beneficial owner of CV Venus Inti Perkasa was detained by investigators from the Attorney General's Office, Tuesday (6/2/2024).

Seller of broiler chickens at Pasar Besar Pangkal Pinang, Boy (28), when met, Wednesday (24/4/2024), said that since the disclosure of the tin corruption case, which among other things had dragged tin entrepreneur from Central Bangka, Tamron alias Aon, as of February 6 2024, the community's economic activity has decreased drastically. This felt true in Boy's sales of broiler chickens, from usually being able to sell 50 kilograms per day to 20-30 kilograms per day.

"Regardless of the ongoing legal process, Tamron's presence greatly helps the circulation of money in the community. Thus far, Tamron has been collecting or purchasing the tin mining results from the community and paying them directly. This makes for a fast circulation of money and therefore, high daily purchasing power among the community," he stated.

Until now, Tamron has been collecting or buying the tin mining results from the community and paying them directly. This makes the cash flow faster, resulting in high purchasing power for daily necessities in the community.

Therefore, small traders like Boy are hoping for a wise step from the government to restore the purchasing power of the community as before. Upon hearing that the government plans to manage the five smelters involved in the case, Boy strongly supports it as it is deemed to help the community regain their livelihoods.

"That will really help to turn around the community's economy," said Boy.

Very lead dependent

The Head of the Master of Management program at the Faculty of Economics and Business of Bangka Belitung University, Reniati, explained that so far, the economy of Bangka Belitung is still very dependent on tin mining. When there are problems in the tin mining industry, it will directly have a wide negative impact on the economy of the island province.

KOMPAS/ADRIAN FAJRIANSYAH

The seller of cut chicken at Pasar Besar Pangkal Pinang, Boy (28), when met on Wednesday (24/4/2024). Since the uncovering of the tin corruption case, including the arrest of a tin businessman from Bangka Tengah, Tamron alias Aon on February 6, 2024, the economic activities of the community have drastically declined. This is felt in Boy's chicken sales, where he used to be able to sell 50 kilograms per day but now can only sell 20-30 kilograms per day.

Referring to data from the Central Statistics Agency, in the first quarter of this year, deflation occurred in Pangkal Pinang and Tanjung Pandan (Belitung Island). This signifies a decrease in the selling price of basic commodities caused by a decline in purchasing power of the community. From the export side, there were no commodities exported from Bangka Belitung until February. This is because there is no tin to be exported, which affects other sectors.

Before the tin corruption case was revealed, 83 percent of Bangka Belitung's exports came from tin or tin processing industries. The remaining 17 percent came from palm oil processing industries. "I have a student who works at the port, and he said that port activities have drastically decreased by 50 percent from normal," said Reniati.

Also read: Investigators Collect New Facts on Alleged Tin Corruption in Bangka

Until the end of 2023, as Reniati stated, the tin processing industry contributes 20.17 percent to the economic structure of Bangka Belitung. Only then followed by agriculture with a contribution of 19.53 percent and trade by 16.4 percent. "So, when the smelter is not operating, many of the workers have no means of livelihood. However, household expenditures of the community become the largest source of economic growth in Bangka Belitung," she explained.

Therefore, Reniati stated that the government's plan to manage five confiscated tin smelters in corruption cases is a wise step to revive the community's economic activities. It will open up a new source of income for households, which could potentially boost the economy in Bangka Belitung.

KOMPAS/ADRIAN FAJRIANSYAH

Illegal tin mining continues to take place around the fishing villages in Pangkal Arang, Pangkal Balam District, Pangkal Pinang City, Bangka Belitung on Wednesday (24/4/2024).

"In terms of the economy, I agree with the government's plan to manage the five smelters, regardless of the legal controversies surrounding it. In the long run, we certainly hope that all relevant parties can use the momentum of uncovering this tin corruption case as a step towards improving the governance of mining or the tin business here," he said.

Firmly refuse

On the contrary, the Director of Bangka Belitung Resources Institute, Teddy Marbinanda, has a different opinion. He firmly rejects the government's plan to manage five smelters confiscated in tin corruption cases because there is no legal basis for the government to take over the management of these smelters.

Firstly, the fate of confiscated items from corruption cases can only be decided by the courts. This means that the case must first go through the trial process. So far, the legal process of the case is still in the investigation phase and has not been referred to the court for trial.

"What is the basis for the government taking over the management of those smelters? Has there been a court decision stating that those seized assets are taken by the state? Even if it is taken by the state, the manager must be appointed through a bidding process, not immediately handed over to the Ministry of SOEs, for example," said Teddy.

Also read: Five Smelters Related to Alleged Tin Corruption Will Be Managed by the State

KOMPAS/ADRIAN FAJRIANSYAH

Head of the Asset Recovery Agency of the Attorney General's Office, Amir Yanto, gave a press statement after a cross-sector coordination meeting regarding the follow-up seizure of five tin smelters on Bangka Island, on Tuesday (23/4/2024), at the Governor's office in Bangka Belitung, Pangkal Pinang, Bangka Island.

Second, Teddy said, there has been no final legal decision against the suspects in this case.

"All the assets that were seized belong to individuals and people involved in the case have not yet received a final legal verdict. What if later the suspects are found not guilty? Moreover, the law in Indonesia upholds the principle of presumption of innocence, which means that everyone must be considered innocent until there is a court ruling," he said.

Since October 2023, the Attorney General's Office has charged 16 suspects in connection with the tin corruption case. Apart from Tamron, there are other famous people, such as the woman nicknamed crazy rich Pantai Indah Kapuk, Helena Lim, and the husband of artist Sandra Dewi, Harvey Moeis. On the other hand, the Attorney General's Office has confiscated a number of assets from five smelters or tin mining processing facilities and examined 148 witnesses.

Also read: Tin Corruption Leaves Environmental Damage and Children Drop Out of School

Acting Governor of Bangka Belitung, Safrizal ZA stated that pros and cons are bound to happen in every sector of life, including in the government's plan to manage five smelters confiscated in the tin corruption case. However, from yesterday's meeting, the plan is one of the solutions proposed by the Attorney General's Office.

Through the meeting, the Attorney General's Office wants to hear opinions from all parties, including the leadership of the region in Bangka Belitung. "The aim is so that the solutions offered can be in accordance with the situation on the ground," said Safrizal.