Key facts
- Chinese investors have formally protested Indonesian government policies affecting the nickel industry.
- The protest letter cited concerns over proposed royalty increases, stricter foreign exchange rules, and reduced mining quotas.
- Investors stated these measures have significantly increased operational costs and reduced investment certainty.
- Chinese firms have invested over $65 billion in Indonesia's nickel sector, particularly in Sulawesi and North Maluku.
- Indonesia's industrialization strategy relies heavily on Chinese capital and technology for its downstream nickel sector.
Chinese investors in Indonesia's nickel industry have formally protested recent government policy changes, expressing concerns about the country's political and economic direction. The China Chamber of Commerce in Indonesia (CCCI) submitted a letter to President Prabowo Subianto detailing grievances over proposed royalty increases, stricter foreign exchange retention rules, significant reductions in nickel mining quotas, and what investors described as increasingly indiscriminate law enforcement.