00:01Indonesia's three biggest foreign banks have repatriated hundreds of millions of dollars
00:06as President Prabowo Subianto advances a more state-focused economic agenda.
00:12The move points to shifting investor sentiment in Southeast Asia's largest economy.
00:17According to an analysis of their financial statements,
00:21Citigroup, Standard Chartered and HSBC have collectively moved about 11.5 trillion rupiah
00:28or US$640 million out of Indonesia since 2024.
00:34This figure slightly exceeds their combined profits in the country over the same period.
00:39Bankers familiar with the matter pointed to early market turbulence under Prabowo's administration
00:45and the growing role of state-linked institutions, including Sovereign Wealth Fund Danantara.
00:52The fund, less than two years old, now oversees hundreds of state-owned enterprises
00:57and manages assets worth about US$900 billion.
01:02Tensions are said to have surfaced after Danantara reportedly asked banks to commit
01:07to a US$10 billion loan facility as a show of support for Indonesia.
01:13Last week, Indonesia added to those concerns by announcing that purchasers of Danantara bonds
01:18would be exempt from legal checks and tax scrutiny.
01:22However, analysts have warned that removing these safeguards could make it easier for questionable
01:28or unverified funds to enter the system.
01:32Indonesia's Financial Services Authority said banks make credit decisions based on business judgment
01:38and that regulators do not intervene in the process.
01:41Anujaria, FMT.
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