{"text":[[{"start":9.4,"text":"Indonesia’s top investor China has warned that $50bn of investments in the country could be at risk from policy changes that it says stand to disrupt the huge nickel industry in south-east Asia’s largest economy."}],[{"start":23.55,"text":"Chinese companies dominate Indonesia’s nickel industry, which has expanded rapidly in recent years on growing demand for the mineral critical to manufacturing stainless steel and EV batteries. Jakarta controls more than two-thirds of global refined nickel supply."}],[{"start":39.25,"text":"But Beijing is worried about new regulations introduced recently that slashed production quotas for miners and established a pricing mechanism that has raised the price of nickel ore. "}],[{"start":50.6,"text":"The pricing adjustment has led to a near-200 per cent increase in production costs for the nickel variety used to manufacture EV batteries, threatening the “operational viability of nearly all such projects”, the Chinese embassy said in a letter to Indonesia’s Ministry of Energy and Mineral Resources that was seen by the FT and has not been previously reported."}],[{"start":71.8,"text":"“Preliminary estimates indicate that these measures could affect $30bn in existing investments and $20bn in planned future investments, while reducing annual nickel product exports by approximately $23bn,” said the letter, which was dated April 21."}],[{"start":88.4,"text":"It warned that up to 400,000 jobs across the nickel value chain could be affected."}],[{"start":94,"text":"The Chinese outcry comes as Indonesian President Prabowo Subianto’s government is facing a backlash from foreign investors over populist welfare policies and increasing state intrusions into the private sector, particularly resources."}],[{"start":null,"text":"
"}],[{"start":108.5,"text":"Chinese companies have fuelled Indonesia’s rise as the dominant player in the nickel industry, investing tens of billions of dollars to establish mines, processing facilities, battery manufacturing and even EV production."}],[{"start":122.9,"text":"Foreign direct investment from mainland China and Hong Kong totalled $18.1bn last year and hit $4.9bn in the first quarter of 2026."}],[{"start":134.05,"text":"The mining quota cuts and new pricing mechanism, which are aimed at bolstering state revenue, have forced several Chinese nickel processing facilities to reduce production, according to industry sources. "}],[{"start":146.4,"text":"Some mining businesses have also faced land confiscations as part of Jakarta’s efforts to crack down on alleged environmental violations, a campaign that critics have claimed was carried out arbitrarily and without due process. "}],[{"start":160.35,"text":"Last month, Prabowo also announced a new state-owned agency to oversee exports of coal, palm oil and certain nickel products, which will block operators from directly selling to customers overseas."}],[{"start":172.79999999999998,"text":"The Chinese embassy criticised the “frequency of recent regulatory changes” in the broader investment climate."}],[{"start":179.54999999999998,"text":"“It is imperative to calibrate the pace of policy implementation to mitigate adverse impacts on the investment climate and employment stability, thereby enhancing policy stability and predictability,” it said."}],[{"start":192.49999999999997,"text":"Indonesia’s government, the Chinese foreign ministry and China’s embassy in Jakarta did not respond to requests for comment. "}],[{"start":null,"text":""}],[{"start":200.39999999999998,"text":"In a separate letter to Prabowo in May, the China Chamber of Commerce in Indonesia said businesses were facing “excessively stringent regulation” and “excessive” law enforcement that had “severely disrupted normal business operations [and] directly undermined long-term investment confidence”."}],[{"start":218.84999999999997,"text":"An official at a Chinese company in Indonesia said businesses felt they were being treated unfairly, especially given the scale of their investments. “I think many investments in the near future may be held back due to the many uncertainties,” the person said. "}],[{"start":234.39999999999998,"text":"Last month, senior Indonesian officials met Wang Lutong, Beijing’s ambassador to Indonesia, and some Chinese companies."}],[{"start":242.29999999999998,"text":"Energy minister Bahlil Lahadalia told reporters that the government received feedback from companies at the meeting. He said that while businesses should “survive”, Indonesia “should also earn income”."}],[{"start":254.49999999999997,"text":"Responding separately last month to the Chinese chamber’s concerns, finance minister Purbaya Yudhi Sadewa alleged that Chinese companies were involved in illegal activities without providing details."}],[{"start":266.04999999999995,"text":"“We will not interfere with anyone’s business here, as long as they operate legally,” he said. “If it’s illegal, we’ll take action.”"}],[{"start":273.74999999999994,"text":"Data visualisation by Haohsiang Ko in Hong Kong"}],[{"start":284.34999999999997,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1781512638_7521.mp3"}