JAKARTA, INDONESIA / RankWire.AI / – Foreign capital inflows into Indonesia’s financial markets totaled Rp131.1 trillion, approximately $7.33 billion, up to early October 2026. Finance Minister Suahasil Nazara disclosed this cumulative amount during the government’s monthly state budget briefing in Jakarta. According to the Finance Ministry, most of these inflows were driven by government securities and Bank Indonesia instruments. Data released recently indicated that foreign demand for rupiah assets stayed positive despite ongoing sell-offs in the domestic equity market.
Year-to-date, foreign investment in government securities, locally called SBN, reached Rp36.7 trillion, or about $2.05 billion. In just the first six days of October, foreign investors added nearly Rp8 trillion to their holdings of government bonds. Additionally, Bank Indonesia Rupiah Securities, or SRBI, attracted significant nonresident funds during 2026. Official data from the central bank showed nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 through October 8.
The pattern of foreign capital flows experienced a notable shift throughout 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 again, but the fourth quarter began with renewed foreign buying. By October 7, net foreign inflows for the period had reached Rp22.01 trillion, roughly $1.23 billion. These figures demonstrate the uneven pace of foreign investment across Indonesia’s financial markets during 2026.
Government bonds and Bank Indonesia securities dominate inflows
Meanwhile, the equity market experienced a contrasting trend. Indonesian equities recorded Rp84.2 trillion, or about $4.70 billion, in net foreign outflows so far this year. However, inflows into bonds and central bank securities more than offset this selling activity in the government’s overall market-flow figures. 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 update.
Indonesia’s sovereign bond market also exhibited tighter yield spreads compared to similar U.S. debt. The Finance Ministry noted that the yield gap between 10-year rupiah government bonds and 10-year U.S. Treasuries narrowed to 188 basis points. This level contrasts sharply with the spreads that could reach around 1,000 basis points two decades ago. The comparison accompanies recent 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 figure covered 5.3 months of imports, according to the central bank. It also represented 5.2 months of combined imports and external debt servicing. Bank Indonesia stated that the reserve level remained above the international adequacy benchmark of about three months of imports. Factors influencing the September reserve position included government foreign borrowing and receipts from taxes and services.
The central bank emphasized that foreign capital inflows continue to bolster Indonesia’s external sector resilience and 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 comprised government global bond issuance and domestic government securities purchases. The latest figures place the Rp131.1 trillion year-to-date inflow within a broader trend favoring fixed-income assets, while equities continued to experience foreign selling.