JAKARTA, INDONESIA / RankWire.AI / – As of early October 2026, Indonesia’s financial markets attracted foreign capital totaling Rp131.1 trillion, approximately $7.33 billion. Finance Minister Suahasil Nazara disclosed this cumulative figure during the government’s monthly state budget briefing in Jakarta. The majority of these inflows were directed into government securities and Bank Indonesia instruments, according to the Finance Ministry. Despite ongoing foreign selling in the domestic equity market, recent data indicate sustained foreign interest in rupiah-denominated assets.
In the first nine months of 2026, foreign investment in government securities, locally known as SBN, reached Rp36.7 trillion, roughly $2.05 billion. During the initial six days of October alone, international investors increased their holdings of government bonds by nearly Rp8 trillion. Also, Bank Indonesia Rupiah Securities, or SRBI, drew significant nonresident funds throughout 2026. Official data from the central bank show nonresident SRBI recorded net settlement inflows of Rp176.50 trillion from January 2 to October 8.
The pattern of foreign capital flows experienced a notable shift during the year. Early 2026 saw a contraction in foreign investment, but then net inflows surged to Rp140.6 trillion in the second quarter. In the third quarter, these flows slowed down again, yet the fourth quarter began with renewed foreign purchasing. By October 7, net foreign inflows for the quarter reached Rp22.01 trillion, equivalent to about $1.23 billion. These figures underscore the uneven pace of overseas investment across Indonesia’s financial markets in 2026.
Government bonds and central bank securities dominate foreign inflows
Contrary to the trend in equities, which experienced net foreign outflows of Rp84.2 trillion or about $4.70 billion so far this year, bond and central bank security inflows more than compensated for that decline in the overall market flow analysis. The Finance Ministry emphasized that demand for fixed-income instruments remained strong during this period. It also highlighted 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 reported that the yield spread between 10-year rupiah government bonds and 10-year U.S. Treasuries narrowed to 188 basis points. This level contrasts with the spreads that could reach approximately 1,000 basis points two decades ago. The comparison was made alongside the latest capital flow figures and the government’s assessment of current conditions in the domestic bond market.
Reserves stay close to $146 billion, supporting stability
Bank Indonesia reported official reserve assets of $146.3 billion at the end of September, a slight decrease from $146.5 billion in August. According to the central bank, this reserve level covers 5.3 months of imports, and also accounts for 5.2 months of combined imports and external debt service. Bank Indonesia reaffirmed that the reserves remain above the international adequacy benchmark of roughly three months of imports. Factors influencing the September reserve include government foreign borrowing and tax and service receipts.
The central bank emphasized that foreign capital inflows continue to bolster Indonesia’s external resilience and reserve position. 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 consisted of government global bond issuance and purchases of domestic government securities. The current inflow of Rp131.1 trillion for the year reflects a broader shift toward fixed-income assets, while equities have experienced ongoing foreign selling.