China’s foreign ministry slammed Indonesia’s new nickel‑mining rules, saying the measures could drain up to $50 billion of planned investment. Jakarta’s Indonesia’s nickel sector, a key export pillar, faces tighter environmental limits that may curb production timelines and foreign capital inflows. The ministry cited new licensing requirements and stricter carbon‑emission thresholds that could delay project approvals by up to two years.

Indonesia, the world’s largest nickel producer, relies on foreign direct investment to expand smelting capacity. Analysts warn that the new curbs could push firms to seek alternative markets or delay joint ventures. This shift could reduce Indonesia’s nickel export share from 40% to below 35% by 2030, according to a recent industry report.

Chinese officials argue the rules aim to protect ecosystems but overlook economic costs. Investors now face higher compliance budgets, potentially raising project costs by 10‑15%. If major players withdraw, Indonesia may need to renegotiate terms with other partners, reshaping the regional nickel supply chain. This could delay global battery supply upgrades.

Until Indonesia lifts the restrictions, the $50 billion stake remains at risk, forcing multinational firms to reassess their Southeast Asian strategy. The decision will likely ripple through regional markets, prompting a realignment of investment flows toward more stable jurisdictions. Such a shift could reduce Indonesia’s nickel output by 5‑10% over the next five years.