Province

Bangka Belitung

Overview Economy

Bangka Belitung, heaven of tin mining and natural tourism

Located off the eastern coast of Sumatra, the archipelagic province of Bangka Belitung comprises several smaller islets along with its two main islands, Bangka and Belitung. Following its formal recognition as a separate province from South Sumatra in 2000, Bangka Belitung became the 31st province of Indonesia.

As of 2023, Bangka Belitung is home to a population of 1.52 million people, marking the province as the least populous in Sumatra island. The communities are comprised of seven big religions, Islam (48.92 percent), Buddhism (24.19 percent), Confucianism (14.59 percent), Christianity (6.08 percent), Catholicism (2.76 percent), Taoism (4.16 percent), and Hinduism (0.08 percent).

Bangka Belitung’s natural landscape is characterized by rainforests, mangrove forests, foliage, and oceans, which are home to a diverse array of marine life, including sea turtles, manta rays, and coral reefs filled with tropical species. One of the province’s most renowned natural features is the granite rock formations that dot the countryside. Additionally, Bangka Belitung boasts beaches such as Tanjung Tinggi Beach in Belitung, renowned for its golden sands and blue waters, and Parai Beach in Bangka, famous for its sunsets.

Beyond its natural splendor, Bangka Belitung is a melting pot of diverse cultures and traditions. The province is home to a blend of Malay, Chinese, and indigenous cultures, which have influenced the region's cuisine, architecture, and way of life. Traditional Malay houses adorned with intricate woodcarvings can be found in the province, along with bustling markets teeming with fresh seafood and spices.

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Economic development

Bangka Belitung’s economy has experienced a positive trend in recent years, with its Gross Regional Domestic Product (GRDP) increasing from Rp 57 trillion in 2022 to Rp 60 trillion in 2023. The processing industry sector contributed the most to the GRDP in 2023 with Rp 12.7 trillion or 21.15 percent, followed by the agriculture sector with Rp 7.4 trillion or 19.49 percent, and the trade sector with Rp 8.6 trillion or 15.69 percent.

Notably, the name "Bangka" in Bangka Belitung is derived from the Sanskrit word Wangka meaning tin, which has historically been the mainstay of the local economy. Tin mining in the province started in the first century during the Palembang Empire, and since then, the province has been a significant contributor to national tin mining output, accounting for around 90 percent. This substantial contribution has made Indonesia the world’s second-largest tin reserve holder, after China, with reserves totaling 800,000 tonnes.

However, the mining sector’s contribution to Bangka Belitung’s GRDP declined by a negative 1.20 percent in 2023, indicating a shift in the province’s economic independence from natural resources to other socioeconomic resources.

Nevertheless, despite this shift, the mining sector remains Bangka Belitung’s most lucrative business opportunity, with Rp 1.9 trillion in investment growth in 2023. This was followed by investments in the metals industry at Rp 1.8 trillion, the food industry at Rp 1.1 trillion, and agriculture at Rp 962 billion. Overall, the province received Rp 9 trillion in investment in 2023, including Rp 1.07 trillion from foreign investors and Rp 7,9 trillion from domestic investors.

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Latest News

March 18, 2025

Mining holding state-owned enterprise (SOE) MIND ID subsidiary PT Timah Tbk. targets its annual production to reach 23,000 tons in 2025, up from 20,000 tons in 2024.

"In 2024, we [produced] 19,000 to 20,000 tons, so there will be an increase of around 15 percent [for] planned [production] in 2025," said TINS ​​Corporate Secretary Rendi Kurniawan in a media briefing in Jakarta on Mar. 12, 2025.

Rendi divulged that the company aims for its profit to reach Rp1.1 trillion for 2024. He added that PT Timah also sought to continue to improve its governance, as well as open new mining areas in Bangka Belitung Islands Province and Riau Islands Province.

"[and] also refurbishment of mining equipment," said Rendi.

On a separate occasion, Rendi stated that PT Timah sought to increase tin ore production capacity and tin ingot sales by around 10 to 20 percent this year compared to the performance it achieved in 2024. He also ensured that the demand for tin ingot will experienced relative growth this year.

"The tin market is currently in a positive prospect," Rendi said when contacted some time ago.

Previously, PT Timah ​​confirmed that it would distribute dividends for the 2024 financial year (FY). The decision was taken after the company managed to record a significant net profit of Rp908.78 billion for the January to September 2024 period. The company's ​​management estimates that the dividend payout ratio (DPR) for FY 2024 will be in the 30 to 35 percent range.

PT Timah, which is publicly listed, is targeting for its revenue to reach Rp12 trillion to Rp13 trillion in 2025, which would support its net profit aim of Rp1 trillion to Rp1.5 trillion for the year. Rendi said this year's target was driven by an increase in tin resources and reserves, as well as the opening of several new mines.

"Improvements in performance, restructuring of the company's subsidiaries, and [improved] efficiency in all company business," said Rendi when contacted on Feb. 8, 2025.

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