Citi, HSBC, StanChart Repatriate $640M From Indonesia Amid Prabowo Policies
Three major foreign banks have repatriated about $640 million in profits from Indonesia since 2024, reducing exposure as President Prabowo Subianto's state-focused economic policies intensify.
Citigroup, HSBC Holdings, and Standard Chartered have repatriated approximately $640 million in profits from Indonesia since 2024, according to a Bloomberg report. The three largest foreign banks in the country are scaling back their presence as President Prabowo Subianto pushes for greater state control over the economy.
The banks have been shipping earnings back to their home markets, reducing their exposure to Southeast Asia's largest economy. This trend reflects growing caution among foreign financial institutions amid Prabowo's increasingly interventionist policies, which include expanding state-owned enterprises and tightening regulations on foreign capital. For equity traders, the repatriation signals potential headwinds for Indonesian stocks, particularly in the banking sector, as foreign capital outflows could pressure the rupiah and weigh on market sentiment. Investors can track current pricing on NowPrice's stocks page for real-time context.
Looking ahead, market participants will watch for further policy announcements from Prabowo's administration, including any new restrictions on foreign ownership or capital movements. The pace of profit repatriation may accelerate if the government continues to prioritize state-led growth, potentially affecting Indonesia's balance of payments and foreign exchange reserves. Traders should monitor upcoming economic data and central bank responses for clues on how the situation evolves.