JAKARTA, INDONESIA / RankWire.AI / – Through early October 2026, Indonesia’s financial markets received foreign capital 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 the majority of these inflows were from government securities and Bank Indonesia instruments. Despite ongoing foreign sales in the domestic equity market, recent data revealed sustained positive foreign interest in rupiah-denominated assets.
Year to date, foreign investment in government securities, locally known as SBN, reached Rp36.7 trillion, or roughly $2.05 billion. During the first six days of October, international investors increased their holdings of government bonds by nearly Rp8 trillion. Additionally, Bank Indonesia Rupiah Securities, or SRBI, attracted significant nonresident funds throughout 2026. Official data from the central bank showed nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 to October 8.
The pattern of capital flows shifted notably during the year. Early 2026 saw a contraction in foreign investment, but net inflows surged to Rp140.6 trillion in the second quarter. Flows slowed during the third quarter, only to rebound with renewed buying at the start of the fourth quarter. As of October 7, net foreign inflows for the quarter reached Rp22.01 trillion, or about $1.23 billion. These figures illustrate the uneven pace of overseas investment across Indonesia’s financial markets throughout 2026.
Government bonds and central bank securities dominate inflows
In contrast, the equity market experienced net foreign outflows of Rp84.2 trillion, roughly $4.70 billion, for the year so far. The inflows into bonds and central bank securities, however, more than offset this selling in the government’s overall market-flow calculation. The Ministry of Finance highlighted that fixed-income instruments attracted the strongest foreign demand during this period. It also emphasized ongoing interest in rupiah-denominated assets in its October fiscal update.
Indonesia’s sovereign bond market also demonstrated narrower spreads compared to comparable U.S. debt. The Finance Ministry noted that the yield spread between 10-year rupiah government bonds and 10-year U.S. Treasuries shrank to 188 basis points. This is a significant reduction from spreads that could reach around 1,000 basis points two decades ago. The comparison was made alongside the latest capital-flow data and the government’s evaluation of the domestic bond market environment.
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 central bank stated that the September reserve level covered 5.3 months of imports. It also sufficed for 5.2 months of combined imports and government external debt servicing. The bank emphasized that the reserve level remains above the international adequacy benchmark of about three months of imports. External factors such as government foreign borrowing and tax and service receipts also influenced the September reserve position.
The central bank pointed out that foreign capital inflows continued to bolster Indonesia’s external-sector resilience along with 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 flows included government global bond issuance and purchases of domestic government securities. The latest data indicates that the Rp131.1 trillion inflow year to date aligns with a broader trend favoring fixed-income assets, while foreign selling persisted in equities.