Indonesia's Finance Minister has moved to reassure Chinese investors following a formal complaint over tightening regulatory policies, The Jakarta Globe reported.
The China Chamber of Commerce recently issued a letter to Indonesian President Prabowo Subianto, highlighting worries over various policies, including mining royalties, nickel ore quota, forestry regulations, and EV incentives, which Chinese firms believe are affecting their operations in the country.
Chinese companies, in particular, raised concerns about a planned policy under which natural resource exporters would be mandated to place 50% of export proceeds in state-owned lenders for a minimum of one year, the newswire said.
Finance Minister Purbaya Yudhi Sadewa clarified that the policy, becoming effective June 1, will have exemptions in place to avoid burdening companies with operations in Indonesia, The Jakarta Globe reported.
"If companies do not borrow money in Indonesia, they can be exempted from the foreign exchange retention requirement," Purbaya said Wednesday, reassuring that exceptions to policy requirements exist, according to the report.
Policies about mineral resource royalties are also under consideration and will ensure the best interest of all stakeholders, Purbaya went on to say.
On the other hand, Indonesia shared concerns regarding certain Chinese firms operating in the country illegally and received reassurance that warnings will be issued to such entities.
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