JAKARTA, INDONESIA / RankWire.AI / – Up to early October 2026, Indonesia attracted foreign capital totaling Rp131.1 trillion, approximately $7.33 billion, into its financial markets. Finance Minister Suahasil Nazara shared this cumulative figure during the monthly government budget briefing in Jakarta. The Finance Ministry indicated that government securities and Bank Indonesia instruments were the primary sources of these inflows. Data revealed that foreign demand for rupiah-denominated assets remained positive, despite ongoing sales in the local equity market.
Foreign investment in government securities, locally called SBN, reached Rp36.7 trillion, or about $2.05 billion, so far in 2026. In just the first six days of October, foreign investors increased their holdings of government bonds by nearly Rp8 trillion. Bank Indonesia Rupiah Securities, or SRBI, also drew significant nonresident funds during the year. Official data from the central bank showed nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 through October 8.
Throughout 2026, the flow patterns shifted notably. Early in the year, foreign capital decreased. However, net inflows surged to Rp140.6 trillion in the second quarter. During the third quarter, flows slowed down, but the fourth quarter started with renewed net buying. By October 7, foreign net inflows for the quarter reached Rp22.01 trillion, roughly $1.23 billion. These figures underline the uneven pace of foreign investment across Indonesia’s financial markets in 2026.
Government bonds and Bank Indonesia securities dominate foreign inflows
Conversely, the equity market experienced net foreign outflows. Indonesian stocks saw Rp84.2 trillion, about $4.70 billion, leave the market so far this year. The inflows into bonds and central bank securities more than offset this selling in the overall market flow. The Finance Ministry noted that fixed-income assets attracted the strongest foreign demand during this period. It also emphasized ongoing interest in rupiah-denominated assets in its October fiscal report.
Indonesia’s sovereign bond market also exhibited tighter yields compared to similar U.S. debt. The Finance Ministry stated that the yield spread between 10-year rupiah government bonds and 10-year U.S. Treasuries shrank to 188 basis points. Two decades ago, that spread could reach around 1,000 basis points. This comparison came alongside recent capital flow data and the government’s assessment of the domestic bond market conditions.
Foreign reserves stay near $146 billion
Bank Indonesia reported official reserve assets of $146.3 billion at the end of September. This was little changed from $146.5 billion in August. The September figure covers 5.3 months of imports, according to the central bank. It also covers 5.2 months of combined imports and government debt servicing. Bank Indonesia confirmed that the reserve level remains above the international adequacy standard of roughly three months of imports. External debt and tax receipts also influenced the reserve position in September.
The central bank stated that foreign capital inflows continue to bolster Indonesia’s external resilience and reserve levels. Bank Indonesia maintained its policy rate at 5.75% during the September meeting. It also reported $0.4 billion in third-quarter portfolio inflows through September 21. These inflows included government global bond issuance and domestic government securities purchases. The $7.33 billion in year-to-date inflows reflects a broader shift toward fixed-income assets, even as foreign investors continued to sell equities.