Indonesia pushes back after Chinese business group complains tougher rules hurt investors

Chinese businesses in Indonesia have issued an unusually blunt warning to President Prabowo Subianto that a wave of tougher rules is hurting investor confidence, exposing growing tension between Jakarta’s push for control of the resources sector and foreign capital that has helped power the country’s nickel boom.Several ministers in Jakarta have pushed back, saying Indonesia must prioritise sovereignty over its natural resources, while stressing the government remains open to dialogue and has postponed some planned increases in mining taxes and royalties.The China-chamber-of-commerce-in-Indonesia" class="entity-link entity-organization" data-entity-id="128331" data-entity-type="organization">China Chamber of Commerce in Indonesia (CCCI) raised its concerns in a letter to Prabowo listing six main issues it said were hampering foreign investment: sharp tax and levy increases, planned mandatory foreign exchange retention requirements, reduced nickel ore quotas, excessive forestry law enforcement, suspension of major projects and increased scrutiny of work visas.