JAKARTA, INDONESIA / RankWire.AI / – Between the start of 2026 and early October, Indonesia’s financial markets attracted foreign investments totaling Rp131.1 trillion, approximately $7.33 billion. Finance Minister Suahasil Nazara disclosed this cumulative amount during the monthly state budget briefing held by the government in Jakarta. The majority of these inflows were attributed to government securities and instruments issued by Bank Indonesia, according to the Finance Ministry. Recent data indicate that foreign appetite for rupiah-denominated assets stayed positive despite ongoing selling pressures in Indonesia’s domestic equity markets.
Foreign purchases of government securities, locally known as SBN, reached Rp36.7 trillion, roughly $2.05 billion, so far in 2026. In just the first six days of October, foreign investors increased their holdings of government bonds by nearly Rp8 trillion. Bank Indonesia Rupiah Securities, or SRBI, also attracted considerable 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 overall pattern of capital movement shifted markedly during the year. Early 2026 saw a contraction in foreign investments, but net inflows surged to Rp140.6 trillion in the second quarter. During the third quarter, these flows slowed down again, yet the fourth quarter started with renewed foreign buying. By October 7, the net foreign inflows for the quarter had reached Rp22.01 trillion, about $1.23 billion. These figures underscore the uneven pace of overseas investment activity across Indonesia’s financial markets in 2026.
Inflows Mainly Driven by Government Bonds and Central Bank Securities
The stock market, however, experienced a different trend. Indonesian equities showed net foreign outflows of Rp84.2 trillion, or around $4.70 billion, in 2026 so far. Despite this, inflows into bonds and securities issued by the central bank more than compensated for the sell-off in equities, as reflected in the government’s cumulative market flow data. 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 in its October fiscal update.
Indonesia’s sovereign bond market demonstrated tighter yields compared to similar U.S. debt. The Finance Ministry stated that the yield spread between 10-year rupiah government bonds and 10-year U.S. Treasuries narrowed to 188 basis points. This is a significant reduction from about 1,000 basis points, a level seen two decades ago. The comparison accompanies recent capital flow figures and reflects the government’s assessment of the domestic bond market conditions.
Foreign Reserves Stable Near $146 Billion
Bank Indonesia reported official reserve assets of $146.3 billion at the end of September, slightly below the $146.5 billion recorded 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 government external debt servicing. The bank noted that the reserve level remains above the international adequacy benchmark of approximately three months of imports. Factors influencing the reserve balance included government foreign borrowing and revenue from taxes and services.
Bank Indonesia affirmed that foreign capital inflows continue to bolster Indonesia’s external resilience along with its reserve position. The central bank held its policy rate steady at 5.75% during its September meeting and reported $0.4 billion in third-quarter portfolio inflows through September 21. These inflows comprised government global bond issuances and purchases of domestic government securities. The latest data position the Rp131.1 trillion inflow for 2026 within a broader trend of increased fixed-income asset investments, even as equities faced ongoing foreign selling.