Indonesian President Pledges Full Protection for Foreign Investment, Bolstering Confidence in Downstream Investment for Nickel and Other Minerals

According to reports on October 8, Indonesian President Prabowo signaled a commitment to stabilizing investment during the launch ceremony of a major project at the Weda Bay Industrial Park on Thursday. He solemnly pledged that the Indonesian government would respect and fully protect all foreign investments within the country, treat various foreign partners equally, and maintain bilateral industrial cooperation. This statement directly addresses recent concerns among foreign investors, aiming to restore investment expectations, mitigate risks associated with policy uncertainty, and solidify the policy foundation for attracting continued foreign capital into Indonesia's downstream industries—such as nickel, aluminum, and photovoltaics. As a global powerhouse in nickel resources, Indonesia has leveraged its 2020 ban on raw nickel ore exports to aggressively drive a shift toward domestic deep processing, attracting significant Chinese capital to establish operations across the nickel and aluminum supply chains. However, recent moves by Indonesia to tighten mining quotas, raise industry taxes and fees, and revise pricing mechanisms have significantly increased production costs for enterprises. Numerous Chinese companies wrote to the President expressing concern that these new policies could undermine confidence in existing investments and constrain future industrial expansion; the President's high-level public statement serves as a direct response to these market concerns.