Chinese firms warn Indonesia's nickel quotas, tax hikes threaten investment

Chinese companies operating in Indonesia are urging more business-friendly policies, warning tighter nickel ore quotas, higher taxes and a new pricing formula are driving up costs and threatening investment in the world's biggest nickel producer. In a letter to President Prabowo Subianto, copied to China’s embassy and seen by Reuters, the China Chamber of Commerce in Indonesia said Chinese firms faced "excessively stringent regulation, over-enforcement", and alleged corruption and extortion by authorities. Five sources with knowledge of the matter confirmed the letter, requesting anonymity because they were not authorised to speak publicly. The complaint highlights tensions between Jakarta's push to extract more value from its natural resources and the Chinese capital that has powered Indonesia's rapid expansion in global nickel supply. The letter cited higher taxes and royalties, planned foreign-exchange retention rules, stricter forestry enforcement, work-visa restrictions and suspensions of major projects. Its strongest warning focused on nickel, where Chinese firms dominate downstre

Original source: Korea Times