JAKARTA, INDONESIA / RankWire.AI / – Up to early October 2026, Indonesia has attracted foreign capital inflows totaling Rp131.1 trillion, approximately $7.33 billion, into its financial markets. Finance Minister Suahasil Nazara revealed this cumulative amount during the government’s monthly state budget briefing in Jakarta. According to the Finance Ministry, the majority of these inflows were driven by government securities and Bank Indonesia instruments. Despite ongoing selling pressure in the domestic equity market, the latest data indicates that overseas demand for rupiah assets stayed positive.
Foreign investors’ holdings in government securities, locally known as SBN, amounted to Rp36.7 trillion, or roughly $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. During 2026, Bank Indonesia Rupiah Securities, or SRBI, also attracted substantial nonresident funds. Official data from the central bank showed that nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 to October 8.
The pattern of foreign capital flows experienced a significant shift over the year. Early in 2026, foreign investments contracted, but then net inflows surged to Rp140.6 trillion in the second quarter. During the third quarter, these flows slowed down again, but the beginning of the fourth quarter saw renewed net buying activity. By October 7, the total net foreign inflows for the quarter reached Rp22.01 trillion, or about $1.23 billion. These figures underscore the uneven pace of overseas investment activity across Indonesia’s financial markets during 2026.
Government securities and central bank instruments dominate foreign inflows
In contrast, the equity market experienced net outflows. Indonesian stocks recorded Rp84.2 trillion, approximately $4.70 billion, in foreign sales so far this year. However, inflows into bonds and central bank securities more than offset this selling in the overall market flow. The Finance Ministry emphasized that fixed-income instruments represented the strongest foreign demand during this period. It also highlighted ongoing interest in rupiah-denominated assets in its October fiscal update.
Indonesia’s sovereign bond market also showed tighter yield spreads compared to similar U.S. debt. The Finance Ministry stated that the spread between 10-year rupiah government bonds and 10-year U.S. Treasuries shrank to 188 basis points. This is a notable reduction from the spreads that could reach about 1,000 basis points two decades ago. The comparison was made alongside the latest capital flow data and the government’s assessment of conditions in the domestic bond market.
Foreign reserves stay near $146 billion, supporting economic stability
Bank Indonesia reported official reserve assets of $146.3 billion at the end of September, nearly unchanged from $146.5 billion in August. The September reserve level covers 5.3 months of imports, according to the central bank. It also suffices for 5.2 months of combined import and external debt service payments. Bank Indonesia confirmed that the reserve position remains above the international adequacy benchmark of about three months of imports. The reserve level was influenced by government foreign borrowing and tax and service receipts in September.
The central bank noted that foreign capital inflows continue to bolster Indonesia’s external resilience and 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 security purchases. These latest figures place the Rp131.1 trillion year-to-date inflow in the context of a broader shift toward fixed-income assets, even as foreign investors continued to sell equities.