Chinese Chamber of Commerce Sends 'Complaint' Letter to Prabowo, Here is the Full Content
Jakarta, CNBC Indonesia - An alliance of entrepreneurs from China has reportedly sent a letter to President Prabowo Subianto regarding several government policies.
Based on the document of the letter, some excerpts criticise government policies related to the increase in mining sector royalties, as well as the tightening of obligations to store Export Proceeds in Foreign Exchange (DHE) domestically.
From the received letter, it is evident that the entrepreneurs are also complaining about the reduction in nickel ore mining quotas, up to allegations of excessive law enforcement practices that create room for corruption and extortion.
Contents of the Letter
The Chinese investors emphasise that they have fully supported the Indonesian government’s policies and conducted business in accordance with applicable laws. They also claim to have made significant contributions to Indonesia’s economic growth, job creation, downstream industry development, and social responsibility.
However, they assess that the situation has changed drastically in recent times.
“In recent times, companies operating in Indonesia have generally faced serious problems, including overly strict regulations, excessive law enforcement, and even corruption and extortion by relevant authorities,” the letter states, quoted on Thursday (14/5/2026).
According to them, this situation has seriously disrupted normal business operations, damaged long-term investment confidence, and raised widespread concerns among Chinese investment companies about the business environment and their future in Indonesia.
One of the main focuses is the repeated increases in taxes and levies. Chinese investors also complain 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 states.
Another complaint targets the plan for mandatory placement of natural resource export proceeds in Indonesian state-owned banks for at least one year. This policy is seen as disrupting company liquidity.
They assess that the obligation to store 50% of export foreign exchange in state-owned enterprises’ banks will be highly detrimental to company liquidity and long-term operations.
Chinese investors also protest the massive reduction in nickel ore mining quotas since the beginning of this year. According to them, the quota cuts for large mines reach more than 70% or around 30 million tonnes in total.
This condition is said to disrupt downstream industries such as new energy vehicles and stainless steel.
Not only that, law enforcement in the forestry sector is also highlighted. The letter mentions that the Indonesian Forest Area Enforcement Task Force imposed fines of up to US$180 million on Chinese investment companies related to forest area borrowing permits.
In addition, several major projects are said to have been halted by the government. Chinese investors accuse authorities of direct intervention in company operations, including on a hydroelectric power plant project accused of damaging forest areas and exacerbating flooding.
“The government ordered the cessation of work and imposed sanctions,” the letter states.
Issues with work visas for foreign workers are also a concern. They state that the work visa approval process is now increasingly complicated, expensive, and restricted by specific work location provisions, thus hindering the mobility of technical and management personnel.
In addition to policies already in place, Chinese investors also express concern about several new government regulatory plans, such as the imposition of additional export duties on certain products, the elimination of electric vehicle incentives, and the reduction of tax facilities in special economic zones.
The biggest concern appears to be directed at the nickel sector. In the letter, the Ministry of Energy and Mineral Resources (ESDM) is said to have recently raised the Mineral Benchmark Price (HPM) for nickel ore and changed its calculation formula by including cobalt, iron, and other associated minerals.
Chinese investors assess that this policy causes the comprehensive cost of nickel ore to surge by up to 200%.
“As the largest investors and operators in Indonesia’s nickel industry, Chinese investment companies now face sharp increases in production costs, widening operational losses, and imbalances in the industrial chain,” it states.
They warn that the impact is not only on ongoing projects but also on future investments, exports, and jobs for more than 400,000 people in the nickel industry chain.
This condition is assessed to be able to “seriously damage global investor confidence in Indonesia’s nickel sector.”
Although conveying several concerns, the Chinese investors still emphasise their commitment to Indonesia-China economic cooperation.
“Chinese investment companies in Indonesia are key participants and drivers of China-Indonesia economic and trade cooperation,” they write.
They state that they remain optimistic about Indonesia’s development potential and are ready to continue supporting industrial advancement and national economic growth.
However, they also assess that many recent Indonesian government policies lack stability and continuity.
“Standards of law enforcement in taxation, environmental, forestry, and other fields are not transparent and provide excessive discretionary authority,” the letter continues.
Chinese investors also complain about complaint channels that are seen as closed. They even mention the existence of third parties who charge high fees to help resolve company issues.
“Some problems can only be resolved through third-party intermediaries who charge very high fees,” they write again.
Through the letter, the investors request that Prabowo give serious attention to