Prabowo risks prompt global banks to pull cash out of Indonesia
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Major foreign banks, including Citigroup, Standard Chartered, and HSBC, have remitted over $640 million out of Indonesia since 2024. This capital flight is attributed to concerns over President Prabowo Subianto’s state-centric economic policies and the expansion of the Danantara sovereign wealth fund.
Why it matters
The withdrawal of foreign capital signals declining investor confidence in Indonesia's economic direction and highlights the risks of state-heavy intervention in emerging markets.
BURSA SGX Home Make The Edge Malaysia your preferred source on Google (June 29): The three biggest foreign banks in Indonesia have shipped around US$640 million of their earnings out of Southeast Asia’s largest economy since 2024 as they pare exposure amid President Prabowo Subianto’s increasingly state-focused economic policies.
The article provides financial data and cites industry concerns without taking a political stance on the president's policies.
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