Purbaya's Response to Chinese Chamber of Commerce's Complaints to Prabowo

Finance Minister Purbaya Yudhi Sadewa responded to the Chinese Chamber of Commerce’s complaints to President Prabowo Subianto about investment obstacles in Indonesia, including the natural resource export proceeds (DHE SDA) policy and plans to raise taxes and royalties in the mineral sector. Purbaya stressed that the government will continue to prioritise national interests in formulating natural resource management policies, including planned adjustments to mineral royalties. “If it’s minerals, that’s fine, those minerals belong to us,” Purbaya said in Jakarta on Tuesday (12/5/2026). According to Purbaya, foreign investors still have the option to invest in other countries if they feel Indonesia’s policies do not align with their business interests. Nevertheless, Purbaya clarified that the government has not yet implemented any royalty increases or additional levies as complained about by Chinese investors. “Not yet, not imposed, it’s just a plan,” he stated. Regarding the DHE SDA policy, Purbaya said the government has prepared several exemptions for certain companies, including possible waivers for those not using domestic financing. “If the company doesn’t borrow money in Indonesia, as far as I know, there is an exemption,” he said. Purbaya also assessed that the DHE SDA policy should not pose a major issue for investors from China. On the other hand, Purbaya revealed that the Indonesian government has also conveyed complaints to the Chinese side regarding business practices of some companies from that country in Indonesia, which are deemed not fully compliant with regulations. “I have also complained to them, many Chinese entrepreneurs here are doing illegal business. I asked them to fix it, and they promised to warn them,” he said. Therefore, Purbaya views Indonesia-China investment relations as two-way, with no serious issues so far. “So it’s two-way actually, no problems,” he said. Based on a letter received by Kompas.com, the China Chamber of Commerce sent a letter to President Prabowo Subianto containing protests about the investment climate in Indonesia. The letter mentions, among other things, concerns over potential changes to the mineral royalty scheme by the Ministry of Energy and Mineral Resources (ESDM). “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 competent authorities,” the China Chamber of Commerce stated in the letter received by Kompas.com on Tuesday (12/5/2026). Meanwhile, those Chinese companies, according to them, have actively participated in Indonesia’s development and made significant contributions to driving economic growth, creating jobs, promoting industrial advancement, and fulfilling social responsibilities.