JAKARTA, INDONESIA / RankWire.AI / – Foreign capital flowing into Indonesia’s financial markets reached Rp131.1 trillion, approximately $7.33 billion, by early October 2026. Finance Minister Suahasil Nazara disclosed this cumulative total during the government’s monthly state budget briefing in Jakarta. According to the Finance Ministry, the majority of these inflows were from government securities and instruments issued by Bank Indonesia. The latest figures indicated that foreign demand for rupiah-denominated assets stayed positive despite ongoing selling pressure in the domestic stock market.
Year-to-date, foreign investment in government securities, known locally as SBN, reached Rp36.7 trillion, or about $2.05 billion. In just the first six days of October, foreign investors added nearly Rp8 trillion to their holdings of government bonds. During 2026, Bank Indonesia Rupiah Securities, or SRBI, also attracted significant nonresident funds. Official data from the central bank revealed that nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 to October 8.
The overall pattern of capital flows experienced a sharp shift throughout the year. Early in 2026, foreign investment contracted before net inflows surged to Rp140.6 trillion in the second quarter. Flows then slowed down during the third quarter, but the fourth quarter started with renewed net buying activity. As of October 7, net foreign inflows for the quarter had reached Rp22.01 trillion, roughly $1.23 billion. These figures underscore the uneven pace of overseas investments across Indonesia’s financial markets during 2026.
Government bonds and central bank securities dominate inflows
Conversely, the equity market experienced a different trend. Indonesian equities recorded Rp84.2 trillion, approximately $4.70 billion, in net foreign outflows so far this year. The inflows into bonds and securities issued by the central bank more than compensated for this selling activity in the government’s overall market-flow analysis. The Finance Ministry highlighted that fixed-income instruments represented the strongest foreign demand during this period. It also noted ongoing 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 had narrowed to 188 basis points. This level contrasts sharply 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 current conditions in 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 September total covered 5.3 months of imports, as per the central bank’s data. It also covered 5.2 months of combined imports and external debt service payments. Bank Indonesia indicated that the reserve level remained above the international adequacy standard of about three months of imports. Factors influencing the September reserve position included government foreign borrowing and receipts from taxes and services.
The central bank emphasized that foreign capital inflows continued to bolster Indonesia’s external-sector resilience alongside its reserve holdings. At its September meeting, Bank Indonesia maintained its policy rate at 5.75% 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 situates the Rp131.1 trillion year-to-date inflow within a broader trend favoring fixed-income assets, even as foreign selling persisted in equities.