Indonesia Rejects 6 Chinese Investor Complaints as Jakarta Defends Sovereignty Over Nickel
Updated
Updated · South China Morning Post · May 17
Indonesia Rejects 6 Chinese Investor Complaints as Jakarta Defends Sovereignty Over Nickel
5 articles · Updated · South China Morning Post · May 17
Jakarta dismissed a China Chamber of Commerce letter listing six grievances, saying tougher investment and mining rules reflect Indonesia’s sovereign right to control its natural resources.
The chamber, which has more than 260 members, said sharp tax and levy increases, planned foreign-exchange retention rules, lower nickel ore quotas, project suspensions and tighter visa scrutiny were hurting foreign investors.
Indonesian ministers pushed back most strongly on complaints over nickel and other resource controls, while still saying the government remains open to dialogue with businesses.
Some pressure has already produced limited relief: Jakarta has postponed planned increases in mining taxes and royalties even as it resists broader demands to ease enforcement and quotas.
Can Indonesia's resource nationalism coexist with the foreign investment it needs?
Is Indonesia’s crackdown on foreign firms a real reform or a new political power play?