Chinese Companies Protest Business Regulations in Letter; Indonesian Government Firmly Defends National Policy
The China Chamber of Commerce in Indonesia has protested to the president about excessive regulations and tax increases in the country. The Indonesian government responded by stating its unwavering stance on welcoming foreign investment contingent on compliance with local laws, and its firm resolve to protect national interests and sovereignty.
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- 📰 Published: May 14, 2026 at 17:47
- 🔍 Collected: May 14, 2026 at 18:02 (15 min after Published)
- 🤖 AI Analyzed: May 14, 2026 at 19:31 (1h 28m after Collected)
(Central News Agency, Jakarta, 14th, Reporter Lo Wei-chia) The Indonesia China Chamber of Commerce, on behalf of Chinese-funded enterprises in Indonesia, recently sent a letter to Indonesian President Prabowo Subianto, protesting the deteriorating business environment. An Indonesian official stated today that all enterprises must comply with local laws, and firmly defended the nation's development interests and sovereignty.
In an open letter on the 12th, the Indonesia China Chamber of Commerce told Prabowo Subianto that Chinese companies in Indonesia are facing severe problems such as excessive regulation, soaring taxes, and officials soliciting bribes. It also pointed out that the recent crackdown by the Task Force for Order in Forest Areas (Satuan Tugas Penertiban Kawasan Hutan) on land use compliance in forest areas has been overly harsh, even demanding that companies pay huge fines as compensation for legalizing their operations.
Furthermore, tax audits on steel companies, a reduction in nickel ore quotas, and a proposed increase in royalties have all affected investment confidence and triggered a liquidity crisis.
In the letter, the Indonesia China Chamber of Commerce emphasized that policy uncertainty and a mandatory foreign exchange surrender plan have disrupted operations, and called on the Indonesian government to establish a stable and transparent legal framework.
'Kompas' reported today that Indonesian Minister of Finance Purbaya Yudhi Sadewa stated that the forestry crackdown and tax audits, which the Chinese side reflected on, are to implement forest protection regulations and ensure fair taxation.
He said that environmental protection and tax compliance are the bottom line of national governance; if the relevant companies do not pay administrative fines as required, the government will pursue legal action.
Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia told Indonesian media yesterday that he had not received instructions from the president regarding the Chinese letter, but his ministry has had face-to-face communication with the Chinese Ambassador to Indonesia and several representatives of Chinese-funded enterprises.
Regarding the Chinese concerns about delays in issuing nickel production quotas, Bahlil explained that the government has accelerated the review process to ensure the stability of the industrial chain supply.
He emphasized that increasing resource royalties is to ensure that the state receives reasonable returns; Indonesia has always welcomed foreign investment, but on the condition that they must comply with local regulations, implement technology transfer, and prioritize hiring local Indonesian workers.
Since the Prabowo government took office, it has been committed to continuing the 'downstreaming' policy, with the goal of transforming Indonesia from a raw material exporting country to a processing center in the global supply chain. Recently, the Indonesian government has strengthened administrative supervision of natural resource development through the forestry task force and tax projects, and is considering raising royalties to ensure national revenue. (Editor: Wei Shu) 1150514
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In an open letter on the 12th, the Indonesia China Chamber of Commerce told Prabowo Subianto that Chinese companies in Indonesia are facing severe problems such as excessive regulation, soaring taxes, and officials soliciting bribes. It also pointed out that the recent crackdown by the Task Force for Order in Forest Areas (Satuan Tugas Penertiban Kawasan Hutan) on land use compliance in forest areas has been overly harsh, even demanding that companies pay huge fines as compensation for legalizing their operations.
Furthermore, tax audits on steel companies, a reduction in nickel ore quotas, and a proposed increase in royalties have all affected investment confidence and triggered a liquidity crisis.
In the letter, the Indonesia China Chamber of Commerce emphasized that policy uncertainty and a mandatory foreign exchange surrender plan have disrupted operations, and called on the Indonesian government to establish a stable and transparent legal framework.
'Kompas' reported today that Indonesian Minister of Finance Purbaya Yudhi Sadewa stated that the forestry crackdown and tax audits, which the Chinese side reflected on, are to implement forest protection regulations and ensure fair taxation.
He said that environmental protection and tax compliance are the bottom line of national governance; if the relevant companies do not pay administrative fines as required, the government will pursue legal action.
Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia told Indonesian media yesterday that he had not received instructions from the president regarding the Chinese letter, but his ministry has had face-to-face communication with the Chinese Ambassador to Indonesia and several representatives of Chinese-funded enterprises.
Regarding the Chinese concerns about delays in issuing nickel production quotas, Bahlil explained that the government has accelerated the review process to ensure the stability of the industrial chain supply.
He emphasized that increasing resource royalties is to ensure that the state receives reasonable returns; Indonesia has always welcomed foreign investment, but on the condition that they must comply with local regulations, implement technology transfer, and prioritize hiring local Indonesian workers.
Since the Prabowo government took office, it has been committed to continuing the 'downstreaming' policy, with the goal of transforming Indonesia from a raw material exporting country to a processing center in the global supply chain. Recently, the Indonesian government has strengthened administrative supervision of natural resource development through the forestry task force and tax projects, and is considering raising royalties to ensure national revenue. (Editor: Wei Shu) 1150514
Stand with the facts. Your every sponsorship is a force for protecting press freedom.
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The text, images, and videos on this website may not be reproduced, publicly broadcast, publicly transmitted, or used without authorization.