Indonesia banks repatriate profits as foreign investors pull back

Indonesia's Financial Services Authority (OJK) said that the repatriation of earnings by foreign‑branch banks is routine and reflects a healthy banking environment. The regulator noted that profit transfers must follow capital‑market rules, be coordinated with Bank Indonesia, and avoid pressure on the rupiah.

At the same time, despite strong first‑half earnings from major banks such as BTPN, Mandiri, BRI, BNI and BCA, Indonesian bank shares fell sharply. Analysts attributed the decline to continued foreign‑investor outflows, which have netted a sell‑off of about US$3.9 billion this year and pressured the broader market index.