JAKARTA, INDONESIA / RankWire.AI / – By early October 2026, Indonesia’s financial markets saw foreign capital inflows totaling Rp131.1 trillion, approximately $7.33 billion. Finance Minister Suahasil Nazara disclosed this cumulative amount during the monthly state budget briefing in Jakarta. The majority of these inflows were driven by government securities and Bank Indonesia instruments, according to the Finance Ministry. Despite ongoing sell-offs in the domestic equity market, foreign interest in rupiah assets remained positive as per the latest data.
Foreign investment in government securities, locally called SBN, reached Rp36.7 trillion, roughly $2.05 billion, so far in 2026. 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 investments during this period. Official data from the central bank indicated nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 to October 8.
The overall trend of capital flows experienced a notable shift during the year. Early 2026 saw foreign capital decline, but net inflows surged to Rp140.6 trillion in the second quarter. The third quarter saw a slowdown, yet the fourth quarter started with renewed foreign buying. By October 7, net foreign inflows for the quarter reached Rp22.01 trillion, around $1.23 billion. These figures underline the uneven pace of foreign investments across Indonesia’s financial markets during 2026.
Government bonds and central bank securities dominate inflows
In contrast, the equity market experienced net foreign outflows, with Indonesian shares losing Rp84.2 trillion, about $4.70 billion, year to date. However, inflows into bonds and securities issued by the central bank more than compensated for this outflow in the overall market flow calculations. The Finance Ministry highlighted that fixed-income instruments drew the strongest foreign interest during this period. It also emphasized ongoing investor appetite for rupiah-denominated assets in its October fiscal update.
Indonesia’s sovereign bond market reflected a narrowing yield spread compared to similar U.S. debt. The Finance Ministry reported that the spread between 10-year rupiah government bonds and 10-year U.S. Treasuries shrank to 188 basis points, down from wider levels historically. This contrasts with the 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 the domestic bond market’s conditions.
Foreign reserves stay near $146 billion amid stable external position
Bank Indonesia reported official reserve assets of $146.3 billion at the end of September, remaining steady from $146.5 billion in August. The September figure covered 5.3 months of imports, according to the central bank, and also supported 5.2 months of combined imports and external debt servicing. The central bank stated that the reserve level remains above the international adequacy benchmark of about three months of imports. Government foreign borrowing, along with tax and service receipts, also influenced the reserve position in September.
Bank Indonesia noted that foreign capital inflows continue to bolster Indonesia’s external resilience and reserve adequacy. The central bank maintained its policy rate at 5.75% during its September meeting and reported $0.4 billion in third-quarter portfolio inflows through September 21. These inflows included government global bond issuance and purchases of domestic government securities. The latest data suggests that the Rp131.1 trillion inflow so far in 2026 is part of a broader shift toward fixed-income assets, while foreign sales persisted in equities.