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 announced this cumulative figure during the government’s monthly state budget briefing in Jakarta. The Finance Ministry indicated that government securities and Bank Indonesia instruments comprised most of these inflows. Despite ongoing selling activity in the domestic equity market, data revealed that foreign demand for rupiah assets remained positive.
Foreign investments in government securities, locally called SBN, reached Rp36.7 trillion, or roughly $2.05 billion, so far this year. 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 received significant nonresident investments. According to official central bank figures, nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 to October 8.
The overall pattern of inflows shifted markedly during the year. Early 2026 saw a contraction in foreign capital, but net inflows surged to Rp140.6 trillion in the second quarter. In the third quarter, these flows slowed again, yet the fourth quarter started with renewed net buying. By October 7, the quarter’s net foreign inflows had reached Rp22.01 trillion, or about $1.23 billion. These figures underscore the uneven pace of overseas investments across Indonesia’s financial markets throughout 2026.
Government bonds and central bank securities dominate inflows
Meanwhile, the equity market experienced a decline. Indonesian shares recorded Rp84.2 trillion, roughly $4.70 billion, in net foreign outflows year to date. However, inflows into bonds and central bank securities more than offset this selling in the government’s overall market-flow calculations. The Finance Ministry emphasized that fixed-income instruments represented the strongest foreign demand during this period. It also highlighted ongoing interest in rupiah-denominated assets as part of its October fiscal review.
Indonesia’s sovereign bond market also exhibited narrower 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 shrank to 188 basis points. By comparison, spreads that could reach about 1,000 basis points two decades ago underline the improved relative pricing. This comparison accompanies the latest capital-flow data and the government’s assessment of the domestic bond market conditions.
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 central bank noted that the September total covered 5.3 months of imports and also encompassed 5.2 months of combined imports and government external debt servicing. The reserve level remained above the international adequacy benchmark of about three months of imports, according to Bank Indonesia. Factors influencing the reserve position included government foreign borrowing and receipts from taxes and services.
The central bank stated that foreign capital inflows continue to bolster Indonesia’s external resilience alongside its 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 included government global bond issuance and purchases of domestic government securities. The year-to-date inflow of Rp131.1 trillion fits within a broader shift toward fixed-income assets, even as foreign investors continued to sell equities.