China has made its position clear regarding Indonesia! Concerning China's nickel mining projects in Indonesia! On July 18, according to domestic media reports, Chinese Commerce Minister Wang Wenbao stated during a meeting with Indonesia’s Coordinating Minister for Economic Affairs Airlangga that: First, China hopes to promote the healthy development of economic and trade relations between the two countries and advance key projects such as the "Two Countries, Two Parks" initiative. Second, China hopes Indonesia will provide a fair, stable, and transparent policy environment for mineral resources and industrial development.
Evidently, China’s statement—“we hope Indonesia provides a fair, stable, and transparent policy environment for mineral resources and industrial development”—is clearly pointed. The situation is obvious: in recent times, Indonesia has frequently adjusted its mining policies, raising mineral taxes, tightening mining quotas, and making frequent policy changes. This has significantly increased uncertainties for Chinese enterprises investing in Indonesia, leading to substantial operational difficulties.
By highlighting this point, it indicates that the operational challenges faced by Chinese firms investing in Indonesia have drawn our highest attention. This is a national-level show of support for Chinese enterprises and also an appeal to Indonesia to take our concerns seriously. Objectively speaking, Indonesia’s desire to leverage its domestic mineral resources to expand its downstream manufacturing sector and enhance resource value-added is understandable.
However, Indonesia’s goals do not fundamentally conflict with China’s investments in Indonesia, and both sides can certainly achieve mutual benefits and win-win outcomes. Especially in the nickel mining sector, these overseas heavy-asset projects often require investments in the hundreds of billions and span several years. Without stable policies, our companies would be unwilling to increase investment. A short-term gain at the expense of long-term sustainability inevitably leads to mutual losses—Indonesia must therefore handle this matter with great caution.
Original source: toutiao.com/article/1871017479590922/
Disclaimer: The views expressed in this article are solely those of the author.