JAKARTA, INDONESIA / RankWire.AI / – The Indonesian government announced that foreign capital inflows into its financial markets reached Rp131.1 trillion, approximately $7.33 billion, by early October 2026. Finance Minister Suahasil Nazara disclosed this cumulative figure during the monthly state budget briefing in Jakarta. The Ministry of Finance indicated that government securities and Bank Indonesia instruments comprised the majority of these inflows. Despite ongoing selling pressure in the domestic equity market, recent data showed sustained foreign appetite for rupiah-denominated assets.
Year to date, foreign investments in government securities, locally known as SBN, reached Rp36.7 trillion, or roughly $2.05 billion. In just the first six days of October, foreign investors increased their holdings of government bonds by nearly Rp8 trillion. Additionally, Bank Indonesia’s Rupiah Securities, or SRBI, experienced significant nonresident inflows during 2026. According to official data from the central bank, nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 to October 8.
The pattern of capital flows shifted markedly over the year. After an initial contraction early in 2026, foreign investment surged, with net inflows reaching Rp140.6 trillion in the second quarter. During the third quarter, these flows slowed down, but the fourth quarter started with renewed net buying. By October 7, foreign net inflows for the quarter had totaled Rp22.01 trillion, approximately $1.23 billion. These figures underscore the uneven pace of overseas investments across Indonesia’s financial sectors throughout 2026.
Government bonds and central bank securities dominate inflows
Meanwhile, the equity market experienced an opposite trend. Indonesian stocks recorded Rp84.2 trillion, or about $4.70 billion, in net foreign outflows for the year so far. However, inflows into bonds and central bank securities more than compensated for that selling in the government’s overall market flow. The Finance Ministry highlighted that fixed-income instruments attracted the strongest foreign demand during this period. The ministry also emphasized ongoing interest in rupiah-denominated assets as part of its October fiscal update.
Indonesia’s sovereign bond market reflected tighter yields compared to similar U.S. debt. The Finance Ministry noted that the spread between 10-year rupiah government bonds and 10-year U.S. Treasuries narrowed to 188 basis points, a significant reduction from the approximately 1,000 basis points spread seen two decades ago. This comparison accompanied the latest capital flow data and the government’s evaluation of domestic bond market conditions.
Foreign reserves hover near $146 billion
Bank Indonesia reported official reserve assets of $146.3 billion at the end of September, almost unchanged from $146.5 billion in August. The central bank indicated that this reserve level covered 5.3 months of imports, and also supported 5.2 months of combined imports and external debt servicing. The bank emphasized that the reserves remained above the international adequacy benchmark of about three months of imports. Government external borrowing, along with tax and service receipts, also influenced the September reserve position.
Bank Indonesia 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 into a broader trend favoring fixed-income assets, while the equity market continued to experience foreign selling.