Chinese Businesspeople Write to Prabowo, Complaining About Regulations
The China Chamber of Commerce in Indonesia (CCCI) has sent a letter to President Prabowo Subianto regarding the investment and business climate in Indonesia.
In the letter, Chinese businesspeople investing in Indonesia conveyed several concerns, ranging from tightened regulations and export proceeds policies (DHE) to the reduction of nickel mining quotas.
Based on a circulating copy of the letter, the investors still view the investment prospects in Indonesia positively. However, they admit to facing challenges that are deemed to disrupt business operations.
Some issues highlighted include tightened regulations, excessive law enforcement, and practices of corruption and extortion by certain authority officials.
“These problems have seriously disrupted normal business activities, directly weakening long-term investment confidence, and causing widespread concerns among Chinese investment companies about the current business climate and their development prospects in Indonesia,” the letter stated, quoted on Wednesday (13/5/2026).
The letter identifies six main issues of concern to Chinese investors.
First, increases in various taxes and levies, including mineral resource royalties, as well as the imposition of fines and taxes deemed excessively large.
Second, the obligation to place natural resource export proceeds (DHE SDA) in national banks, which is seen as potentially disrupting company liquidity.
Third, the reduction in nickel ore quotas, said to reach 70% or about 30 million tonnes. This condition is assessed to impact the development of downstream industries such as electric vehicles and stainless steel.
Spotlight on Law Enforcement and Work Visas
In addition, Chinese businesspeople also highlighted law enforcement in the forestry sector, which is deemed overly strict.
“Fourth, forestry law enforcement has been tightened excessively. The Indonesian Forest Management Task Force has imposed a record fine of USD180 million on a Chinese investment company for not having a valid Forest Area Utilisation Approval,” the letter stated.
Fifth, investors also mentioned the halt of several major projects due to floods, including a hydropower plant project built by a Chinese company.
Sixth, work visa regulations that are considered increasingly strict with high costs and requirements. This condition is seen as hindering the mobility of technical workers from China to Indonesia.
Not only that, the China Chamber of Commerce also criticised plans for new export levies, reductions in tax incentives in special economic zones (SEZs), and the elimination of several electric vehicle incentives.
Investors also highlighted the rise in the Nickel Mineral Benchmark Price (HPM) and changes to the pricing formula that now include cobalt, iron, and other associated minerals.
These policies are deemed to trigger a surge in nickel ore production costs of up to 200%.
“As the largest investors and operators in Indonesia’s nickel industry, Chinese investment companies are now facing sharp increases in production costs, widening operational losses, and imbalances across the entire industry chain,” the letter stated.
Request Government Attention
While conveying various complaints, Chinese investors emphasised that they still see Indonesia as a strategic partner in bilateral economic relations.
However, they hope the government will promptly take improvement measures to keep the business climate competitive.
“All Chinese investment companies in Indonesia earnestly request serious attention from Your Excellency to the above issues,” the letter stated.
The China Chamber of Commerce requests the government to improve the investment climate, strengthen legal certainty, listen to business actors’ aspirations, and build more effective communication mechanisms between the government and investors.
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) views the letter sent by the China Chamber of Commerce in Indonesia to the government as positive input.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu stated that the letter contains concerns from Chinese investors about several challenges observed in Indonesia.
“That’s quite normal. They even see conditions with notes that become challenges in this country and provide input to the government,” Todotua said again.
Meanwhile, Liputan6.com has also attempted to confirm the letter with several representatives of the Indonesian Chamber of Commerce and Industry. However, some claim not to know about the letter, and others have not yet responded.