JAKARTA, INDONESIA / RankWire.AI / – Up to early October 2026, Indonesia’s financial markets attracted foreign investment totaling Rp131.1 trillion, approximately $7.33 billion. Finance Minister Suahasil Nazara announced 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. Recent data revealed that foreign interest in rupiah assets persisted positively despite ongoing selling pressure in the domestic equity market.
Foreign investors’ holdings in government securities, locally referred to as SBN, reached Rp36.7 trillion, or roughly $2.05 billion, year-to-date. In just the first six days of October, overseas investors added nearly Rp8 trillion to their government bond portfolios. Bank Indonesia Rupiah Securities, or SRBI, also attracted significant nonresident funds during 2026. Official data from the central bank indicated nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 through October 8.
The overall trend of capital flows shifted notably during the year. Early in 2026, foreign capital decreased before experiencing a surge, with net inflows reaching Rp140.6 trillion in the second quarter. During the third quarter, inflows slowed down, but the fourth quarter started with renewed net buying. By October 7, the quarter’s net foreign inflows had hit Rp22.01 trillion, roughly $1.23 billion. These figures demonstrate the uneven pace of overseas investment activity 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 recorded Rp84.2 trillion, about $4.70 billion, in net sales from abroad year to date. However, inflows into bonds and central bank securities more than compensated for this selling, as reflected in the government’s overall market-flow data. The Finance Ministry highlighted that fixed-income instruments saw the strongest foreign demand during this period. It also noted continued interest in assets denominated in rupiah as part of its October fiscal update.
Indonesia’s sovereign bond market also demonstrated tighter yields compared to similar U.S. debt instruments. 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, contrasting with the roughly 1,000 basis points spread seen two decades ago. This comparison accompanied the latest capital flow statistics and the government’s evaluation of conditions within the domestic bond market.
Reserves stay close to $146 billion
Bank Indonesia reported official reserve assets of $146.3 billion at the end of September, 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 external debt servicing. The bank stated that the reserve level remains above the international adequacy standard of approximately three months of imports. External factors such as government foreign borrowing and tax and service receipts also influenced the reserve position in September.
The central bank emphasized that foreign capital inflows continue to bolster Indonesia’s external sector resilience and its reserve holdings. At its September meeting, Bank Indonesia maintained the policy rate at 5.75% and 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 situate the Rp131.1 trillion year-to-date inflow within a broader trend favoring fixed-income assets, despite ongoing foreign sales in equities.