The China Chamber of Commerce in Indonesia issued an open letter to Indonesian President Prabowo Subianto on May 12, 2026. The letter stated that Chinese firms operating locally have been burdened by stringent regulations, arbitrary law enforcement, and corruption and extortion by state officials.

Indonesia has implemented lower mining quotas, higher export levies, and stricter localization requirements. The country cut its 2026 national nickel ore production quota from 379 million tonnes to 250 million tonnes. Indonesia lifted royalty rates for low-grade nickel ore from 17% to 30%, with the new rate taking effect on April 15, 2026. New taxes were introduced on cobalt, iron, and chromium metals associated with nickel production.

Tsingshan Group and Huayou Cobalt began adjusting operations in early May 2026, with some scaling back output. On May 11, 2026, Indonesia announced a suspension of the nickel royalty hike.

President Prabowo Subianto addressed the issues on May 13, 2026, stating that lengthy permit procedures and excessive red tape stemmed from bureaucratic misconduct, with some officials demanding bribes to speed up administrative work. Finance Minister Purbaya Yudhi Sadewa stated on May 14, 2026, "These minerals belong to us. If investors intend to leave, they can seek resources elsewhere."

In March 2026, Fitch Ratings revised Indonesia's sovereign credit outlook from stable to negative. Since the start of 2026, the Indonesian rupiah has depreciated against the US dollar, reaching a rate of 18,000 against the US dollar in June 2026.