JAKARTA, INDONESIA / RankWire.AI / – Up to early October 2026, Indonesia attracted foreign capital inflows totaling Rp131.1 trillion, approximately $7.33 billion, into its financial markets. Finance Minister Suahasil Nazara announced this cumulative figure during the government’s monthly state budget briefing in Jakarta. The majority of these inflows were directed into government securities and instruments issued by Bank Indonesia, according to the Finance Ministry. Despite ongoing sell-offs in the domestic equity market, foreign demand for rupiah-denominated assets remained robust and positive, the latest data confirms.
Foreign investment in government securities, locally known as SBN, reached Rp36.7 trillion, or roughly $2.05 billion, so far this year. During the first six days of October, overseas investors increased their holdings of government bonds by nearly Rp8 trillion. Nonresident funds also flowed significantly into Bank Indonesia Rupiah Securities, or SRBI, throughout 2026. Official data from the central bank indicated nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 to October 8.
The pattern of capital flows experienced a notable shift during the year. Early 2026 saw a contraction in foreign investments, yet net inflows surged to Rp140.6 trillion in the second quarter. The third quarter saw a moderation in these flows, but the start of the fourth quarter marked a renewed phase of net buying. By October 7, the quarter’s net foreign inflows had reached Rp22.01 trillion, approximately $1.23 billion. These figures underscore the uneven pace and fluctuating nature of international investment across Indonesia’s financial markets throughout 2026.
Government bonds and central bank securities lead capital inflows
In contrast, Indonesia’s equity markets experienced an outflow. Net foreign sales of Indonesian shares amounted to Rp84.2 trillion, around $4.70 billion, year to date. However, inflows into bonds and securities issued by Bank Indonesia more than compensated for this outflow in the overall market flow calculations. The Finance Ministry emphasized that fixed-income instruments demonstrated the strongest foreign demand during this period. It also highlighted persistent interest in rupiah-denominated assets as part of its October fiscal update.
Indonesia’s sovereign bond market reflected tighter spreads relative to comparable U.S. debt securities. The Finance Ministry reported that the yield spread between 10-year rupiah government bonds and 10-year U.S. Treasuries narrowed to 188 basis points. This compares to the spreads of about 1,000 basis points observed two decades ago. The comparison was made in light of the latest capital flow figures and the government’s assessment of current conditions within the domestic bond market.
Foreign reserves stay close to $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 noted that this reserve level covered 5.3 months of imports, and also sufficed for 5.2 months of combined imports and government external debt servicing. Bank Indonesia affirmed that the reserves remained above the international adequacy benchmark of roughly three months of imports. External factors such as government foreign borrowing, tax collections, and debt service receipts also influenced the reserve position in September.
The central bank pointed out that foreign capital inflows continue to bolster Indonesia’s external resilience and support its reserve assets. Maintaining its policy rate at 5.75% during the September meeting, Bank Indonesia also reported $0.4 billion in third-quarter portfolio inflows through September 21. These flows included government global bond issuance and purchases of domestic government securities. The latest data confirms that the Rp131.1 trillion inflow year to date aligns with a broader trend favoring fixed-income assets, even as foreign investors continued to sell equities.