Updated
Updated · The Japan Times · Jun 29
Citigroup, HSBC and Standard Chartered Pull $640 Million From Indonesia as Prabowo Shifts Stateward
Updated
Updated · The Japan Times · Jun 29

Citigroup, HSBC and Standard Chartered Pull $640 Million From Indonesia as Prabowo Shifts Stateward

1 articles · Updated · The Japan Times · Jun 29

Summary

  • $640 million in earnings has been remitted from Indonesia since 2024 by Citigroup, Standard Chartered and HSBC, with the outflow slightly exceeding their combined profits over the period.
  • Prabowo Subianto's increasingly state-focused economic policies have pushed the three biggest foreign banks in Indonesia to pare exposure to Southeast Asia's largest economy.
  • 11.5 trillion rupiah was shipped out over two years, marking a break from earlier practice as Citigroup had historically remitted about 84% of profits in the decade before Prabowo took office.
  • That earlier gap meant more earnings were typically retained in Indonesia to fund growth and bolster capital buffers, underscoring how foreign banks' stance toward the market has hardened.

Insights

Is capital flight from Indonesia signaling a broader retreat of global finance from emerging Asian markets?
With foreign banks pulling out, can Indonesia's nationalist economic model deliver on its promises?
Will Indonesia's legally-shielded 'Patriot Bonds' fund national growth or risk its global financial standing?