Indonesia’s tin production plays a vital role in shaping global tin prices. A significant supply disruption from the country has triggered a noticeable price surge worldwide. As one of the world’s top tin exporters, Indonesia’s drop in output sent a clear signal to the market: global supply vulnerabilities remain a major concern.
Indonesia Tin Production Sees Sharp Drop
In 2023, Indonesia produced approximately 65,000 tons of tin, contributing around 17.5% of the world’s total supply. However, this figure fell sharply in 2024, with production dropping to just 45,000 tons.
Consequently, Indonesia’s global contribution declined to only 12%. PT Timah Tbk, the state-owned tin producer, accounted for 15,340 tons of the 2023 output. These numbers illustrate how Indonesia’s domestic changes can affect the entire global tin ecosystem.
Global Tin Market Reacts with Price Surge
The global tin market responded quickly to the decline. In 2023, average tin prices stood at US$26,583 per ton. Following the production cut, prices climbed to an average of US$31,164 per ton in 2024. As of May 12, 2025, Trading Economics reported the price had reached US$32,574 per ton, marking a 4.14% increase compared to the previous month.
“This proves Indonesia’s influence on the global tin supply,” said Maroef Sjamsoeddin, President Director of MIND ID, during a Hearing Meeting with Commission VI of the House of Representatives on May 14, 2025.
Strategic Cooperation with Other Tin Producers
China, Myanmar, and Peru currently lead as the world’s other top tin producers. Still, Indonesia remains a critical player due to its substantial market share. Maroef emphasized the need for closer international partnerships. “Strategic cooperation between Indonesia, China, and Peru needs to be strengthened to increase influence in the global market,” he explained.
Indonesia aims to enhance its role by working more closely with fellow tin-producing nations. These alliances could help stabilize prices, ensure supply continuity, and boost collective bargaining power. By aligning with China and Peru, Indonesia can contribute to a more resilient global supply chain.
No Alternative for Tin Yet
Beyond partnerships, another key factor driving prices is the lack of a viable substitute for tin in many industrial applications. Tin remains essential in electronics, soldering, packaging, and energy systems. As industrial demand continues to grow, the market shows no signs of finding a replacement anytime soon. This intensifies pressure on current producers and amplifies the impact of supply fluctuations.
“The condition of the global tin market cannot yet be replaced by other commodities. Hence, market demand continues to rise year by year,” Maroef noted, as cited by cnbcindonesia.com.
Tin Supply Shortage Highlights Indonesia’s Role
The recent surge in tin prices demonstrates just how essential Indonesia is to the global tin market. Despite producing less tin in 2024, the country’s supply cuts sent ripples across the world. As demand continues to rise and alternatives remain limited, Indonesia’s role grows even more pivotal. Strengthening strategic ties and increasing production efficiency will be vital steps in maintaining price stability and meeting global needs.
Source: cnbcindonesia.com, ekonomi.bisnis.com
Image: Canva Images
