JAKARTA, INDONESIA / RankWire.AI / – Through 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 attributed to 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 recent data indicate.
Year to date, foreign investment in government securities, known locally as SBN, reached Rp36.7 trillion, roughly $2.05 billion. During the first six days of October alone, foreign investors increased their holdings of government bonds by nearly Rp8 trillion. Additionally, Bank Indonesia Rupiah Securities, or SRBI, drew significant nonresident funds throughout 2026. Official data from the central bank show nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 to October 8.
The pattern of foreign capital flows shifted considerably over the year. After an initial contraction early in 2026, net inflows surged to Rp140.6 trillion in the second quarter. During the third quarter, these flows slowed, but at the start of the fourth quarter, renewed net buying was observed. By October 7, foreign net inflows for the quarter had reached Rp22.01 trillion, approximately $1.23 billion. These figures underscore the uneven pace of overseas investment across Indonesia’s financial markets in 2026.
Inflows driven mainly by government bonds and central bank securities
Conversely, the equity market experienced net foreign outflows, with Indonesian shares losing Rp84.2 trillion, about $4.70 billion, year to date. The inflows into bonds and central bank securities more than compensated for this selling activity in the overall market flow calculations. The Finance Ministry highlighted that fixed-income instruments represented the strongest foreign demand during this period. It also emphasized sustained interest in rupiah-denominated assets as part of its October fiscal update.
Indonesia’s sovereign bond market also demonstrated tighter yields relative to comparable 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 compares to spreads that could have reached about 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 conditions.
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 reserve level covered 5.3 months of imports, according to the central bank. It also sufficed for 5.2 months of combined imports and government external debt servicing. The central bank stated that this reserve amount remains above the international adequacy benchmark of roughly three months of imports. Factors such as government foreign borrowing, tax receipts, and service payments influenced the September reserve position.
Foreign capital inflows continue to bolster Indonesia’s external-sector resilience and its reserve status, according to Bank Indonesia. 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 year-to-date inflow of Rp131.1 trillion fits within a broader trend favoring fixed-income assets, even as equities faced persistent foreign selling.