Indonesian Elites Flee to Offshore Assets Amid Rising Fiscal and Political Concerns

A wave of capital flight is sweeping through Indonesia’s wealthy elite as fears over fiscal discipline and political stability mount. According to Bloomberg, affluent Indonesians have begun transferring hundreds of millions of dollars abroad since late last year.

Citing a report from cnnindonesia.com, In addition to economic uncertainty, concerns have grown over President Prabowo Subianto’s recent move to expand the military's domestic role since taking office in October 2024.

One such individual, Chan—a former executive in his 40s at a major Indonesian firm—shared his concerns anonymously due to fears of government reprisal. “I’ve been increasing my USDT (Tether) purchases in recent months,” he said.

“This allows me to preserve the value of my assets and move them across borders without physical transport. I’m genuinely concerned about Indonesia’s economic outlook and the risks to political stability,” Chan added.

Chan is far from alone. Over a dozen wealth managers, private bankers, and financial advisors reported that many wealthy clients are following a similar path.

These individuals are moving assets into gold, real estate, and cryptocurrencies—vehicles that enable discreet transfers of large sums. A private banker noted that some Indonesian clients with net worths between US$100 million and US$400 million have shifted up to 10% of their portfolios into crypto since October.

The trend accelerated after the rupiah weakened in March. A financial firm disclosed moving around US$50 million of Indonesian client money to Dubai and Abu Dhabi, mainly to purchase residential and commercial property under the names of relatives and friends—part of an effort to avoid detection.

Some clients have even secured work visas in Dubai, enabling them to set up shell companies for property transactions under corporate names.

Middle-Class Turns to Gold as Safe Haven

It’s not just the ultra-wealthy seeking to protect their wealth. Indonesia’s middle class has also begun safeguarding their assets, though their strategy differs. Instead of transferring money abroad, they are turning to physical gold.

This trend is evidenced by a 30% surge in gold sales during the first quarter of 2025 compared to the same period last year.