Foreign Banks Clarify Fund Outflows from Indonesia Amid Policy Concerns
Foreign banks have been reported to be withdrawing large sums of money from Indonesia. This was reported by foreign media outlet Bloomberg on 29 June, which stated that business units of Citigroup Inc., Standard Chartered Plc., and HSBC Holdings Plc withdrew a total of Rp11.5 trillion over the last two years. The amount exceeded their accumulated profits over the same period. According to sources in the report, the fund withdrawals were made due to concerns over the country’s policy direction.
Looking solely at last year’s financial report, PT Bank HSBC Indonesia distributed profits to shareholders in the form of dividends. Throughout 2025, HSBC distributed cash dividends worth approximately Rp2.95 trillion, consisting of an annual cash dividend of Rp1.32 trillion and a special cash dividend of Rp1.64 trillion. The company’s annual report shows the special dividend came from retained earnings, whilst the annual dividend was the use of the 2024 profit balance approved by shareholders.
Regarding this fund withdrawal, a representative of HSBC Indonesia responded by saying the withdrawal is in line with the Asian region’s ongoing readjustment of its trade and supply chain maps. Indonesia is said to have the right opportunities for regional growth. “Indonesia brings scale and momentum for Asia’s next phase of growth. As the region readjusts its trade and supply chain maps, HSBC is uniquely positioned to connect Indonesia’s industrial ambitions with global capital. We will continue to prioritise focus on these growth opportunities,” the HSBC Indonesia representative told CNBC Indonesia on Wednesday (1/7/2026).
Meanwhile, the annual reports of Standard Chartered Indonesia and Citibank N.A. Indonesia (Citi Indonesia) show a distribution of profits to their head offices throughout 2025. However, at the same time, both also recorded an increase in the balance of profits not yet transferred to the head office. Standard Chartered Indonesia recorded a profit transfer to the head office of Rp388 billion, with an unremitted profit balance of Rp967.6 billion, up from Rp442.4 billion the previous year.
Head of Corporate Affairs, Brand & Marketing at Standard Chartered Indonesia, Puni Anjungsari, said the company is aware of the Bloomberg report. She explained that the remittances referred to in the article originated from profits in previous years and are part of Standard Chartered’s routine profit distribution process. According to Puni, all remittances are carried out in accordance with the provisions of the laws and regulations in force in Indonesia and have obtained the required approval from the Financial Services Authority (OJK). She then affirmed that the British bank’s commitment to Indonesia has not diminished. “Standard Chartered remains fully committed to Indonesia and there is no change to that commitment. We continue to support Indonesia’s economic development, through various strategic roles we undertake, including as a sovereign rating advisor for the Republic of Indonesia, as well as through our support in mobilising funding for the Indonesian Government and national strategic entities, including Danantara,” Puni told CNBC Indonesia on Wednesday (1/7/2026).
Meanwhile, Citi Indonesia’s 2025 annual financial report recorded a profit remittance of Rp2.44 trillion. The United States-based bank also posted an unremitted profit of Rp10.17 trillion, an increase from Rp10.05 trillion at the end of 2024. Regarding this matter, Citi Indonesia CEO and Chairman of the Association of International Banks in Indonesia (Perbina), Batara Sianturi, did not immediately answer CNBC Indonesia’s questions. A representative from Citi Indonesia also declined to comment.