(Yicai) July 21 -- Chinese investment in Indonesia was about USD3.9 billion in the first half of this year, maintaining its position as one of the Southeast Asian country's main sources of foreign investment, Xinhua New Agency reported, citing Rosan Perkasa Roeslani, Indonesia’s minister for investment and downstream industry.

The Indonesian government will continue to implement policies that promote trade and investment and improve the business environment, Roeslani said, adding that it remains confident in the prospects for investment cooperation between the two countries.

In May, the China Chamber of Commerce in Indonesia sent an unusually strongly worded letter to President Prabowo Subianto, expressing concerns about the conditions facing Chinese-funded enterprises in the country.

Their concerns include an increase in taxes and fees, stricter tax audits, a reduction of over 70 percent in nickel mining quotas compared to the beginning of the year, and adjustments to the benchmark prices of nickel that have raised overall costs by as much as three times. The letter also mentioned tighter foreign-exchange controls, stricter forestry enforcement, visa restrictions, and delays to major projects.

Roeslani said that recent policy adjustments were aimed at strengthening industry governance, enhancing competitiveness, and creating greater long-term value for Indonesia's economy, and were not targeted at any specific country or investment partner.

Indonesia has always maintained an open attitude and is committed to ensuring a stable, transparent, and investor-friendly environment, he added.

Anindya Novyan Bakrie, chairman of the Indonesian Chamber of Commerce and Industry, said in Beijing last month that he will communicate directly with Chinese business representatives to see whether the concerns expressed by the Chinese chamber represent the general view about operating in Indonesia.

Roeslani highlighted that China has always been an important strategic partner for Indonesia in the fields of trade and investment, adding that the two sides have achieved significant cooperation results in areas such as downstream development, manufacturing, infrastructure, natural resources, and energy transition.

Last year, total investments in Indonesia from the Chinese mainland and Hong Kong amounted to roughly USD18 billion, making it the largest source of foreign investment for the country.

Editor: Tom Litting