Ministry of Finance Denies Finance Minister Purbaya Suggested Foreign Investors Leave Indonesia
The Ministry of Finance has strongly denied reports suggesting that Finance Minister Purbaya Yudhi Sadewa encouraged foreign investors to look for other countries if they find Indonesia’s policies unsuitable. The Ministry’s Information and Documentation Management Officer emphasised that such information is false.
The issue surfaced following an open letter from the China Chamber of Commerce in Indonesia (CCCI) to President Prabowo Subianto, which highlighted various investment obstacles within the country. “The circulating news regarding Finance Minister Purbaya’s statement… is hoax news,” the Ministry stated, urging the public to remain cautious to prevent misunderstandings regarding the domestic investment climate.
Previously, the China Chamber of Commerce submitted a written complaint to President Prabowo Subianto regarding investment conditions. They highlighted several regulations deemed burdensome to businesses, including the planned requirement for the retention of Export Proceeds from Natural Resources (DHE). This policy mandates that 50 per cent of export proceeds be deposited into Indonesian state-owned banks for a minimum period of one year.
“This will significantly harm company liquidity and long-term operations,” the letter stated. In addition to foreign exchange issues, Chinese entrepreneurs also complained about planned increases in royalty rates for mineral and coal commodities, as well as the implementation of export duties, which are seen as increasing production costs for the mining and nickel downstreaming industries.
Finance Minister Purbanya Yudhi Sadewa explained that the investment relationship between Indonesia and China is reciprocal. He noted that the Indonesian government has also raised concerns regarding illegal business practices by certain Chinese entrepreneurs. “I have complained to them; many Chinese entrepreneurs here are also conducting illegal businesses. I asked them to rectify this, and they promised to issue warnings. So, it is actually two-way; there is no problem,” Purbaya remarked.