Bahlil Responds to Chinese Chamber of Commerce Complaints on Mining Royalties and RKAB

JAKARTA, KOMPAS.com - Energy and Mineral Resources Minister Bahlil Lahadalia claims he has not received a letter from the Chinese Chamber of Commerce, which was reportedly sent to President Prabowo Subianto regarding several policies in the mining and investment sectors in Indonesia.

“I don’t know yet, I don’t know, I haven’t received the letter,” Bahlil told reporters at the Attorney General’s Office in Jakarta on Wednesday (13/5/2026).

Nevertheless, Bahlil stated that Chinese businesspeople as well as the Chinese Ambassador to Indonesia have already communicated directly with him regarding several issues, including the adjustment of the Nickel Mineral Benchmark Price (HPM).

Bahlil claimed to have provided explanations to them.

“Some have already communicated with me. The ambassador has also spoken with me, and I have given a good explanation,” he said.

The reduction exceeds 70 percent, with a total production drop of 30 million tonnes, which is considered to disrupt the development of downstream industries such as new energy and stainless steel.

In response to this, Bahlil assured that the RKAB adjustment continues to proceed and does not cause significant problems for business actors.

“Oh, the RKAB is being adjusted and there’s no problem,” Bahlil stated.

However, according to those Chinese companies, they have actively participated in Indonesia’s development and made important contributions to driving economic growth, creating jobs, promoting industrial enhancement, and fulfilling social responsibilities.

“However, in recent periods, companies operating in Indonesia have generally faced prominent issues, including overly strict regulations, excessive law enforcement, and even corruption and extortion by authorised authorities,” the Chinese Chamber of Commerce stated in its letter received by Kompas.com on Tuesday (12/5/2026).

One of the main highlights is the repeated increases in taxes and levies. Chinese investors also complained about increasingly intensive tax examinations accompanied by threats of very large fines.

“Taxes and fees, including mineral resource royalties, have been raised repeatedly, accompanied by increasingly intensive tax examinations and even large fines of up to tens of millions of US dollars, creating panic among companies,” the letter reads.