Global banks are cutting back their exposure to Indonesia as concerns grow about the direction of President Prabowo Subianto’s economic policies and their impact on foreign investor confidence. Bloomberg reports that the three largest foreign banks operating in Indonesia have shifted around $640 million of earnings out of the country since 2024, indicating a pullback in regional capital commitment. Other coverage describes a similar trend, saying some banks curb their exposure rather than expand holdings. The outlets attribute the shift to banks’ growing worries that policies with a more state-focused approach could affect the investment climate. While the articles do not detail specific measures, they link the decision-making to deteriorating confidence among foreign investors and a reassessment of risk by international lenders. Overall, the reporting suggests banks are taking steps to manage balance-sheet risk and cashflows in response to perceived policy uncertainty, with the magnitude of the reported earnings outflows serving as evidence of the retrenchment since 2024.
Banks reduce Indonesia exposure amid concerns about President Prabowo’s economic policies
Global banks are cutting back their exposure to Indonesia as concerns grow about the direction of President Prabowo Subianto’s economic policies and their impact on foreign investor confidence. Bloomb...
- Multiple foreign banks curb or reduce their exposure to Indonesia amid concerns about President Prabowo Subianto’s policy direction.
- Bloomberg says three leading foreign banks have shipped about $640 million in earnings out of Indonesia since 2024.
- The articles link the pullback to weakening foreign investor confidence and heightened perceived policy risk.
- Coverage indicates the shift is driven by banks’ reassessment of economic and investment conditions rather than a single stated event.
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.
2 months 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.
2 months 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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