JAKARTA, INDONESIA / RankWire.AI / – By early October 2026, Indonesia’s financial markets experienced foreign capital inflows totaling Rp131.1 trillion, approximately $7.33 billion. Finance Minister Suahasil Nazara revealed this cumulative figure during the government’s monthly state budget briefing in Jakarta. The Ministry of Finance indicated that government securities and Bank Indonesia instruments comprised the majority of these inflows. Data showed that foreign demand for rupiah-denominated assets remained positive despite persistent selling pressures in the domestic equity market.
Year to date, foreign investment in government securities, locally called SBN, reached Rp36.7 trillion, or about $2.05 billion. During the first six days of October alone, overseas investors added nearly Rp8 trillion to their holdings of government bonds. Additionally, Bank Indonesia Rupiah Securities, or SRBI, drew significant nonresident investments throughout 2026. According to official central bank data, nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 through October 8.
The pattern of capital flows shifted markedly during the year. Capital outflows occurred early in 2026, but net inflows surged to Rp140.6 trillion in the second quarter. Flows then eased during the third quarter, with the fourth quarter beginning with renewed net buying activity. By October 7, net foreign inflows for the quarter reached Rp22.01 trillion, roughly $1.23 billion. These figures demonstrate the uneven pace of foreign investment across Indonesia’s financial markets throughout 2026.
Government bonds and central bank securities dominate inflows
In contrast, the equity market experienced net foreign outflows. Indonesian equities saw Rp84.2 trillion, or about $4.70 billion, in net selling so far this year. However, inflows into bonds and central bank securities more than offset this outflow in the overall market flow calculations. The Finance Ministry highlighted that demand for fixed-income instruments remained strong during this period. It also emphasized ongoing interest in rupiah-based assets in its October fiscal update.
Indonesia’s sovereign bond market also reflected tighter spreads compared to similar U.S. debt. The Finance Ministry noted that the yield difference between 10-year rupiah government bonds and 10-year U.S. Treasuries shrank to 188 basis points. This compares to spreads that could reach about 1,000 basis points two decades ago. The comparison was made alongside recent capital flow data and the government’s evaluation of current conditions in the domestic bond market.
Foreign reserves stay near $146 billion
Bank Indonesia reported official reserve assets of $146.3 billion at the end of September, a slight decrease from $146.5 billion in August. The central bank stated that this reserve level covered 5.3 months of imports. It also sufficed to cover 5.2 months of combined imports and government external debt service. Bank Indonesia affirmed that the reserves remained above the international adequacy benchmark of about three months of imports. Factors influencing the September reserve position included government foreign borrowing and revenue from taxes and services.
The central bank emphasized that foreign capital inflows continued to bolster Indonesia’s external resilience and its reserve adequacy. At its September meeting, Bank Indonesia maintained its policy rate at 5.75%. It also reported $0.4 billion in third-quarter portfolio inflows through September 21, which included government global bond issuance and domestic government securities purchases. These latest figures place the Rp131.1 trillion inflow so far in 2026 within a broader trend favoring fixed-income assets, despite ongoing foreign selling in equities.