JAKARTA, INDONESIA / RankWire.AI / – Foreign capital entering Indonesia’s financial markets reached Rp131.1 trillion, approximately $7.33 billion, by early October 2026. Finance Minister Suahasil Nazara revealed this cumulative total during the government’s monthly state budget briefing in Jakarta. The Finance Ministry indicated that government securities and Bank Indonesia instruments comprised the majority of these inflows. Recent data shows that foreign demand for rupiah assets remained positive despite ongoing selling pressure in the domestic equity market.
Year to date, foreign investment in government securities, known locally as SBN, totaled Rp36.7 trillion, or roughly $2.05 billion. In just the first six days of October, foreign investors added nearly Rp8 trillion to their holdings of government bonds. Bank Indonesia Rupiah Securities, or SRBI, also attracted significant nonresident funds throughout 2026. According to official central bank data, nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 to October 8.
The overall pattern of capital flows experienced a notable shift during the year. Early in 2026, foreign investment decreased, but net inflows surged to Rp140.6 trillion in the second quarter. During the third quarter, inflows slowed again, yet the fourth quarter began with renewed net buying. By October 7, net foreign inflows for the quarter had reached Rp22.01 trillion, approximately $1.23 billion. These figures emphasize the uneven pace of overseas investment across Indonesia’s financial markets in 2026.
Government bonds and central bank securities dominate inflows
Conversely, the equity market experienced net foreign outflows. Indonesian shares saw Rp84.2 trillion, or about $4.70 billion, in net selling year to date. However, inflows into bonds and central bank securities more than compensated for this outflow in the overall market-flow calculations. The Finance Ministry highlighted that fixed-income instruments represented the strongest foreign demand during this period. It also noted sustained interest in rupiah-denominated assets as part of its October fiscal update.
Indonesia’s sovereign bond market also demonstrated 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 narrowed to 188 basis points. This compares to spreads that could reach about 1,000 basis points two decades ago. The comparison accompanied the latest capital-flow data and the government’s evaluation of conditions within 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 September total covered 5.3 months of imports, according to the central bank. It also covered 5.2 months of combined imports and government external debt service. Bank Indonesia indicated that the reserve level 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 continue to support Indonesia’s external-sector resilience along with its reserve position. Bank Indonesia maintained its policy rate at 5.75% during the September meeting 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 suggests that the Rp131.1 trillion year-to-date inflow reflects a broader shift toward fixed-income assets, while equities continued experiencing foreign selling.