JAKARTA, INDONESIA / RankWire.AI / – By early October 2026, Indonesia’s financial markets attracted foreign investments totaling Rp131.1 trillion, approximately $7.33 billion. Finance Minister Suahasil Nazara shared this cumulative figure during the government’s monthly state budget briefing in Jakarta. The majority of these inflows were from government securities and instruments issued by Bank Indonesia, according to the Finance Ministry. Despite ongoing sell-offs in the domestic equity market, recent data indicates foreign interest in rupiah assets remained positive.
Foreign holdings in government securities, locally known as 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 government bond positions. Additionally, Bank Indonesia Rupiah Securities, or SRBI, attracted significant nonresident investments during 2026. Official data from the central bank revealed nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 through October 8.
The pattern of capital flows experienced a notable shift during the year. After an initial contraction in early 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 quarter had reached Rp22.01 trillion, equivalent to about $1.23 billion. These figures underscore the uneven pace of foreign investment across Indonesia’s financial markets throughout 2026.
Government bonds and central bank securities dominate inflows
In contrast, the equity market experienced net outflows. Indonesian stocks saw Rp84.2 trillion, or approximately $4.70 billion, in net foreign selling year to date. However, inflows into bonds and central bank securities more than offset this selling, according to the government’s cumulative market-flow calculations. The Finance Ministry highlighted that fixed-income instruments attracted the strongest foreign demand during this period. It also emphasized ongoing interest in rupiah-denominated assets as part of its October fiscal update.
Indonesia’s sovereign bond market demonstrated tighter yields relative to comparable U.S. debt. The Finance Ministry indicated that the yield spread between 10-year rupiah government bonds and 10-year U.S. Treasuries narrowed to 188 basis points, contrasting with spreads that could reach about 1,000 basis points two decades ago. This comparison was made alongside recent capital-flow data and the government’s evaluation of 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, remaining relatively unchanged from $146.5 billion in August. The September figure 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 service. Bank Indonesia stated that the reserve level continued to surpass the international adequacy standard 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 continued to bolster Indonesia’s external resilience alongside its 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 inflows comprised government global bond issuance and purchases of domestic government securities. The latest data positioned the Rp131.1 trillion year-to-date inflow within a broader trend favoring fixed-income assets, while equities persisted in experiencing foreign selling.