{
    "success": true,
    "data": {
        "id": 1736626,
        "msgid": "indonesias-nickel-policies-worry-chinese-investors-1778659151",
        "date": "2026-05-13 13:05:32",
        "title": "Indonesia's Nickel Policies Worry Chinese Investors",
        "author": " ",
        "source": "GALERT",
        "tags": "",
        "topic": "Mining",
        "summary": "Chinese investors in Indonesia's nickel sector have expressed deep concerns over the government's sharp reductions in nickel ore mining quotas, which exceed 70% for large mines and total a 30 million ton drop, disrupting downstream industries like new energy and stainless steel. The policy changes, including a cap on annual production at 210 million tons and a 200% surge in ore costs due to revised pricing rules, are raising production expenses, threatening jobs for over 400,000 workers, and eroding investor confidence in the sector. As Indonesia seeks to shift from raw exports to advanced manufacturing in electric vehicle batteries, leveraging its vast 62 million metric ton nickel reserves, these measures risk undermining foreign direct investment, including the $4.9 billion from China and Hong Kong in the first quarter.",
        "content": "<p>Indonesia\u2019s Nickel Policies Worry Chinese Investors<\/p>\n<p>Jakarta. Indonesia\u2019s nickel policies have worried Chinese investors,\nas businessmen penned a letter to President Prabowo Subianto to improve\nthe investment climate.<\/p>\n<p>In that five-page letter, the China Chamber of Commerce in Indonesia\nhas waved a flag of concern for Jakarta\u2019s drastic trims to nickel ore\noutput.<\/p>\n<p>\u201cSince this year, nickel ore mining quotas have been cut sharply,\nwith reductions for large mines exceeding 70%, totaling a drop of 30\nmillion tons, disrupting the development of downstream industries such\nas new energy and stainless steel,\u201d the group wrote.<\/p>\n<p>Indonesia has intended to slash its nickel ore output to keep prices\nstable. At the beginning of the year, the government floated a plan to\ncap the annual nickel ore production at just 250-260 million tons, way\ndown from the 379 million tons set for 2025. As of early April, the\ngovernment had greenlit the production for 210 million tons, local news\nagencies revealed.<\/p>\n<p>The Chinese investors zeroed in on the latest hike to the benchmark\nprice of nickel ore and revisions of its pricing rules. This price sets\nthe minimum price for domestic sales of nickel ore. However, such\nchanges have triggered a 200% surge in comprehensive ore costs,\naccording to the document.<\/p>\n<p>\u201cAs the largest investors and operators in Indonesia\u2019s nickel\nindustry, Chinese-invested enterprises now face sharply rising\nproduction costs, widening operational losses, and imbalances across the\nindustrial chain,\u201d the letter reads.<\/p>\n<p>The businesspeople cautioned that the move could deal a blow to both\nexisting and future investments, while also putting the jobs of over\n400,000 people in jeopardy. The policies also risk \u201cseriously\nundermining global investors\u2019 confidence in Indonesia\u2019s nickel sector\u201d,\nthey wrote.<\/p>\n<p>The Jakarta Globe has reached out to the Energy Ministry for comments\non the Chinese investors\u2019 concerns.<\/p>\n<p>Between January and March, foreign direct investments (FDI) from\nmainland China and Hong Kong totaled around $4.9 billion. Their combined\ninvestments in Indonesia\u2019s overall industrial processing totaled Rp 40.5\ntrillion ($2.3 billion) over the same period.<\/p>\n<p>Nickel is a mainstay ingredient in electric vehicle battery\nproduction, and Indonesia \u2013 which is abundant in the silvery-white metal\n\u2013 wants to pivot from raw commodity export to producing more\nsophisticated goods. To this end, Indonesia has opened its doors to\nforeign investors.<\/p>\n<p>According to the US Geological Survey, Indonesia is home to the\nworld\u2019s largest nickel reserves, with estimates placing them at 62\nmillion metric tons.<\/p>\n<p>Tags: Keywords:<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/indonesias-nickel-policies-worry-chinese-investors-1778659151",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}