Multiple reports say several major foreign banks are cutting back their exposure to Indonesia and shifting earnings out of the country. Bloomberg reports that the three largest foreign banks in Indonesia have moved about $640 million in earnings out of Southeast Asia’s largest economy since 2024. The reporting links the reduction in exposure to changes under President Prabowo Subianto and a broader shift toward more state-focused economic policies, which some investors see as increasing risk. The Japan Times similarly describes banks as becoming more cautious, saying some decided to curb exposure as concerns grow about Indonesia’s policy direction and its impact on foreign investor confidence. Together, the sources indicate a pattern of banks reducing holdings or taking less risk, while continuing operations through regulated activity in Indonesia. The accounts do not cite specific bank-by-bank decisions or provide details on any regulatory actions, focusing instead on the broader trend of banks managing exposure as sentiment toward policy changes shifts.
Foreign banks reduce cash exposure in Indonesia amid concerns over Prabowo’s policies
Multiple reports say several major foreign banks are cutting back their exposure to Indonesia and shifting earnings out of the country. Bloomberg reports that the three largest foreign banks in Indone...
- Three of the largest foreign banks in Indonesia have shifted about $640 million of earnings out of Indonesia since 2024.
- The reports link bank caution to concerns about President Prabowo Subianto’s policy direction and its effect on foreign investor confidence.
- Some banks curb exposure as they reassess the risk from increasingly state-focused economic policies.
- The coverage describes a broader reduction in financial exposure rather than a specific bank or event causing the change.
Some banks curbed their exposure to Indonesia as they became increasingly concerned about president Prabowo Subianto’s policy direction, which has dented foreign investors' confidence.
3 hours agoSome banks decided to curb exposure to Indonesia as they became increasingly concerned over the country's policy direction that has dented foreign investors' confidence.
4 hours agoThe three biggest foreign banks in Indonesia have shipped around $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.
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