Jakarta. Energy and Mineral Resources Minister Bahlil Lahadalia says the government remains open to dialogue after Chinese investors raise concerns over Indonesia’s mining and nickel sector policies in a protest letter sent to President Prabowo Subianto.

The letter, submitted by the China Chamber of Commerce in Indonesia on behalf of Chinese-invested companies operating in Indonesia, warned that recent regulations and law enforcement measures were creating uncertainty and undermining investor confidence.

Bahlil said he had not yet received a copy of the letter but confirmed that he had discussed several mining and mineral policies directly with China’s ambassador, including revisions to Indonesia’s benchmark nickel pricing formula.

“The ambassador has already spoken with me, and I provided a proper explanation,” Bahlil told reporters on Wednesday at the Attorney General’s Office complex in Jakarta.

The chamber’s letter outlined a series of concerns affecting Chinese investors, particularly those involved in Indonesia’s nickel downstream industry, electric vehicle supply chain and stainless steel sector.

Among the complaints were repeated increases in taxes and mineral royalties, tighter foreign exchange retention rules for exporters, reductions in nickel ore mining quotas, stricter forestry law enforcement and tougher work visa requirements for foreign workers.

The group also criticized what it described as excessive law enforcement and opaque regulatory standards in areas such as taxation, environmental protection and forestry, warning that some companies had faced large fines, operational disruptions and growing compliance costs.

One major concern involved Indonesia’s policy to sharply reduce nickel ore mining quotas this year. According to the chamber, quota cuts for some large mines exceeded 70%, reducing total nickel ore production by around 30 million tons.

The chamber also objected to revisions in Indonesia’s benchmark mineral price (HPM) for nickel ore. The new pricing formula now includes cobalt, iron and other associated minerals in the calculation for the first time.

Chinese investors claimed the changes had caused comprehensive nickel ore costs to surge by as much as 200 percent, increasing operational losses and disrupting the nickel supply chain.

“As the largest investors and operators in Indonesia’s nickel industry, Chinese-invested enterprises now face sharply rising production costs, widening operational losses, and imbalances across the industrial chain,” the chamber wrote.

The letter warned that the policies could threaten existing projects, future investment, exports and employment for more than 400,000 workers linked to Indonesia’s nickel industry.

Bahlil, however, said the government had agreed to temporarily postpone planned export tax and royalty increases for copper, tin, nickel, gold and silver while officials work on a more balanced policy framework.

“We agreed to temporarily postpone it while we look for a good formula, while still prioritizing the interests of the state and businesses. Both sides must benefit,” he said.

He added that the government wanted future policies to strengthen state revenue without burdening businesses or disrupting Indonesia’s investment climate.

Despite the concerns, the chamber reaffirmed its commitment to long-term economic cooperation with Indonesia and urged the government to maintain a stable, transparent and predictable business environment for foreign investors.

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