LiteLaw Literacy - This article discusses White Collar Crime in the corruption scandal within the tin mining sector in Indonesia, including abuse of power and legal violations by high-ranking officials and mining mafia, resulting in state losses of 271 trillion Rupiah. Amidst the vast economic potential of tin mining, corruption and illegal mining have damaged the environment and threatened social justice. This article delves into the violated laws, related court cases, and the importance of legal and governance reforms to recover state assets and build public trust in the government and the mining industry.

Tin Mine: A Strategic Asset of the State

Mining is a crucial sector in the nation's economic development. It can generate employment for many people, both directly and indirectly. Mining products are raw materials used in manufacturing, construction, and energy industries.

Tin mining is a strategic natural resource with high economic value. Tin is a major export commodity and can generate significant state revenue. Indonesia holds the world's second-largest tin reserves. These reserves are spread across various islands, including Bangka Belitung.

Besides its positive impacts, tin mining also has negative impacts. If mining is conducted in accordance with applicable regulations, the negative impacts can be minimized. However, the reality on the ground is that mining is often carried out in violation of applicable regulations, causing losses to the state, environmental damage, and even social conflicts.

Illegal mining and corruption in this sector frequently occur. Illegal tin mining and corrupt actions committed by the mining mafia, unscrupulous officials, and mining companies have recently become viral news in various media outlets, resulting in state losses of 271 Trillion Rupiah. This corruption case dates back to 2015-2022. Various corrupt practices were employed, including creating shell companies to accommodate the collection of illegal tin ore, collaborating with unscrupulous officials to issue permits and work orders for the transportation of residual processing products (SHP) of tin minerals, facilitating corrupt activities disguised as leasing smelting processing equipment, accommodating illegal tin miners whose mining products are then sent to smelters owned by the unscrupulous officials, and accommodating several smelters to participate in the illegal mining activities and requesting these smelters to set aside a portion of the profits generated, which is then handed over as if it were a fund for Corporate Social Responsibility (CSR).