Chinese investors have formally protested against new Indonesian government policies, signaling potential friction for the country’s industrialization and future foreign investment.

Chinese investors in Indonesia’s nickel industry recently sent a formal protest letter to President Prabowo Subianto. The message reflects their concerns over Indonesia’s political and economic direction, and the long-term trajectory of Chinese investment and Indonesia’s industrialisation programme will hinge on how Indonesia resolves them. The letter, submitted by the China Chamber of Commerce in Indonesia (CCCI), complained about a series of government policies, including proposed royalty...