Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia confirmed the Indonesian government is open to discussions after Chinese investors protested recent mining and nickel policies. A letter from the China Chamber of Commerce warned President Prabowo Subianto that new regulations and law enforcement create uncertainty for the electric vehicle and stainless steel supply chains.

Investors pointed to sharp mining quota cuts and a new nickel pricing formula that includes cobalt and iron, reportedly tripling some nickel ore costs. These measures, plus stricter work visa rules and forestry laws, threaten projects involving 400,000 workers.

In response, Bahlil announced a temporary delay on planned export tax and royalty increases for several minerals, such as copper and nickel. The government aims to balance state revenue with a stable business climate for foreign capital.