Jakarta. State-owned tin producer Timah (IDX) posted a more than ninefold jump in first-half profit as a government crackdown on illegal mining and tin smuggling in Bangka Belitung helped restore supply and improve the company’s operations.

Timah’s net profit attributable to owners of the parent entity surged to Rp 2.71 trillion ($151.7 million) in the first half of 2026, from Rp 300.07 billion a year earlier.

Revenue rose 146.9% to Rp 10.42 trillion, while operating profit jumped to Rp 3.46 trillion from Rp 380.20 billion. Its operating margin widened to 33.24% from 9.01%.

The stronger performance was supported by a 75% increase in tin ore production to 12,232 metric tons of tin content, or Sn. Refined tin production rose 58% to 10,865 metric tons, while sales volume jumped 85% to 10,984 metric tons.

Timah also benefited from a 52% increase in its average tin selling price to $49,794 per metric ton.

The company said tighter oversight and security across its mining permit areas, along with support from a central government task force, had strengthened its operations.

The improvement followed President Prabowo Subianto’s order for a large-scale crackdown on around 1,000 illegal mines and the closure of tin smuggling routes in Bangka Belitung. The operation, involving the military, police and customs authorities, began in September 2025.

BRI Danareksa analyst Andhika Audrey said the crackdown was gradually bringing tin mining activity back into the formal ecosystem, allowing Timah to secure ore supplies from its concessions while improving production facility utilization and investor confidence in the national tin industry.

“The impact is starting to show in Timah’s higher production, sales volume and improved margins. If oversight of illegal mining and smuggling routes is maintained consistently, the company’s performance could see more sustainable growth,” Andhika said in Jakarta on Tuesday.

The positive sentiment has also lifted Timah’s shares. The stock rose about 17.7% from Rp 3,270 on June 30 to Rp 3,850 on Aug. 10.

At that price, Timah had a market capitalization of around Rp 28.67 trillion. Based on a simple annualization of its first-half 2026 profit, the stock was trading at an indicative price-to-earnings ratio of around 5.3 times.

“The closure of illegal mines could become a re-rating catalyst for Timah. The market is no longer seeing the company merely as a beneficiary of higher tin prices, but also as a company with more measurable opportunities for growth in production, cash flow and profit,” Andhika said.

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