The China Chamber of Commerce in Indonesia (CCCI) has sent a letter\nto President Prabowo Subianto regarding the investment and business\nclimate in Indonesia.<\/p>\n
In the letter, Chinese businesspeople investing in Indonesia conveyed\nseveral concerns, ranging from tightened regulations and export proceeds\npolicies (DHE) to the reduction of nickel mining quotas.<\/p>\n
Based on a circulating copy of the letter, the investors still view\nthe investment prospects in Indonesia positively. However, they admit to\nfacing challenges that are deemed to disrupt business operations.<\/p>\n
Some issues highlighted include tightened regulations, excessive law\nenforcement, and practices of corruption and extortion by certain\nauthority officials.<\/p>\n
\u201cThese problems have seriously disrupted normal business activities,\ndirectly weakening long-term investment confidence, and causing\nwidespread concerns among Chinese investment companies about the current\nbusiness climate and their development prospects in Indonesia,\u201d the\nletter stated, quoted on Wednesday (13\/5\/2026).<\/p>\n
The letter identifies six main issues of concern to Chinese\ninvestors.<\/p>\n
First, increases in various taxes and levies, including mineral\nresource royalties, as well as the imposition of fines and taxes deemed\nexcessively large.<\/p>\n
Second, the obligation to place natural resource export proceeds (DHE\nSDA) in national banks, which is seen as potentially disrupting company\nliquidity.<\/p>\n
Third, the reduction in nickel ore quotas, said to reach 70% or about\n30 million tonnes. This condition is assessed to impact the development\nof downstream industries such as electric vehicles and stainless\nsteel.<\/p>\n
Spotlight on Law Enforcement and Work Visas<\/p>\n
In addition, Chinese businesspeople also highlighted law enforcement\nin the forestry sector, which is deemed overly strict.<\/p>\n
\u201cFourth, forestry law enforcement has been tightened excessively. The\nIndonesian Forest Management Task Force has imposed a record fine of\nUSD180 million on a Chinese investment company for not having a valid\nForest Area Utilisation Approval,\u201d the letter stated.<\/p>\n
Fifth, investors also mentioned the halt of several major projects\ndue to floods, including a hydropower plant project built by a Chinese\ncompany.<\/p>\n
Sixth, work visa regulations that are considered increasingly strict\nwith high costs and requirements. This condition is seen as hindering\nthe mobility of technical workers from China to Indonesia.<\/p>\n
Not only that, the China Chamber of Commerce also criticised plans\nfor new export levies, reductions in tax incentives in special economic\nzones (SEZs), and the elimination of several electric vehicle\nincentives.<\/p>\n
Investors also highlighted the rise in the Nickel Mineral Benchmark\nPrice (HPM) and changes to the pricing formula that now include cobalt,\niron, and other associated minerals.<\/p>\n
These policies are deemed to trigger a surge in nickel ore production\ncosts of up to 200%.<\/p>\n
\u201cAs the largest investors and operators in Indonesia\u2019s nickel\nindustry, Chinese investment companies are now facing sharp increases in\nproduction costs, widening operational losses, and imbalances across the\nentire industry chain,\u201d the letter stated.<\/p>\n
Request Government Attention<\/p>\n
While conveying various complaints, Chinese investors emphasised that\nthey still see Indonesia as a strategic partner in bilateral economic\nrelations.<\/p>\n
However, they hope the government will promptly take improvement\nmeasures to keep the business climate competitive.<\/p>\n
\u201cAll Chinese investment companies in Indonesia earnestly request\nserious attention from Your Excellency to the above issues,\u201d the letter\nstated.<\/p>\n
The China Chamber of Commerce requests the government to improve the\ninvestment climate, strengthen legal certainty, listen to business\nactors\u2019 aspirations, and build more effective communication mechanisms\nbetween the government and investors.<\/p>\n
The Ministry of Investment and Downstreaming\/Investment Coordinating\nBoard (BKPM) views the letter sent by the China Chamber of Commerce in\nIndonesia to the government as positive input.<\/p>\n
Deputy Minister of Investment and Downstreaming\/Deputy Head of BKPM\nTodotua Pasaribu stated that the letter contains concerns from Chinese\ninvestors about several challenges observed in Indonesia.<\/p>\n
\u201cThat\u2019s quite normal. They even see conditions with notes that become\nchallenges in this country and provide input to the government,\u201d Todotua\nsaid again.<\/p>\n
Meanwhile, Liputan6.com has also attempted to confirm the letter with\nseveral representatives of the Indonesian Chamber of Commerce and\nIndustry. However, some claim not to know about the letter, and others\nhave not yet responded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/chinese-businesspeople-write-to-prabowo-complaining-about-regulations-1778788057", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }