Three major foreign banks operating in Indonesia have pulled out $640 million（約1000億円） in earnings over the past two years amid President Prabowo's shift toward greater government control of the economy, including expansion of the sovereign wealth fund. The outflow rate far exceeds the decade-long pattern before 2024, when these banks retained most profits locally to support growth and capital strength. The departure reflects foreign financial institutions' concern about the new policy environment.
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Citigroup, Standard Chartered, and HSBC's Indonesian units remitted a total of 11.5 trillion rupiah ($640 million（約1000億円）) over the last two years, slightly exceeding their combined profits for the period. This follows President Prabowo Subianto's push for increased government economic power, including expanding the sovereign wealth fund Danantara.
Why it matters
The three banks' outflow rate has shifted sharply compared with the decade before 2024, when they kept the rest of their profits in Indonesia to support growth and strengthen capital buffers—Citigroup alone shipped out an average of 84% of profits in that earlier period. The change signals that major foreign financial institutions view the policy environment as riskier, which may reduce credit availability and investment in Southeast Asia's largest economy.
What to watch
The scale of capital departure (exceeding the banks' combined profits for two years) suggests the trend could accelerate if state-focused policies expand further.
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