Prabowo’s policy risks prompt global banks to pull cash out of Indonesia
Foreign banks in Indonesia have remitted $640 million in earnings back to their parent companies since 2024, citing concerns over President Prabowo Subianto's state-focused economic policies. The trend reflects growing investor anxiety regarding the expansion of the government's sovereign wealth fund and state control.
Why it matters
Signals potential economic instability in Southeast Asia's largest economy and highlights the impact of nationalist economic policies on foreign investment.
Indonesia's president Prabowo Subianto has pushed for an increased role of the government, including expanding the economic power of its sovereign wealth fund Danantara. (Reuters pic)
The report relies on financial data and industry sources to explain a trend in capital flight without taking a partisan stance.
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