JAKARTA, INDONESIA / RankWire.AI / – Foreign investments into Indonesia’s financial markets reached Rp131.1 trillion, approximately $7.33 billion, by early October 2026. Finance Minister Suahasil Nazara announced this cumulative figure during the government’s monthly state budget briefing held in Jakarta. The Ministry of Finance indicated that government securities and Bank Indonesia instruments comprised most of these inflows. The latest data revealed that foreign demand for rupiah assets remained positive, even as selling persisted in the domestic equity market.
Year to date, foreign holdings of government securities, known locally as SBN, reached Rp36.7 trillion, or about $2.05 billion. During the first six days of October alone, international investors added nearly Rp8 trillion to their government bond holdings. Bank Indonesia Rupiah Securities, or SRBI, also attracted significant nonresident funds throughout 2026. According to official central bank data, nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 through October 8.
The pattern of capital flows shifted notably over the year. Early 2026 saw a contraction in foreign investments, but net inflows surged to Rp140.6 trillion in the second quarter. Flows slowed during the third quarter, yet the fourth quarter began with renewed net buying. By October 7, foreign net inflows for the quarter reached Rp22.01 trillion, roughly $1.23 billion. These figures illustrate the uneven pace of overseas investments across Indonesia’s financial markets during 2026.
Government bonds and central bank securities dominate inflows
Conversely, the equity market experienced net foreign outflows. Indonesian stocks recorded Rp84.2 trillion, or about $4.70 billion, in net foreign selling this year. The inflows into bonds and central bank securities more than offset this sell-off in the government’s overall market-flow calculations. The Ministry of Finance 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 also reflected tighter spreads compared to comparable U.S. debt. The Ministry of Finance noted that the yield difference 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 accompanied the latest 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, essentially unchanged from $146.5 billion in August. The September total covered 5.3 months of imports, as per the central bank. It also covered 5.2 months of combined imports and government external debt servicing. Bank Indonesia affirmed that the reserve level remains above the international adequacy standard of approximately three months of imports. External factors such as government foreign borrowing and tax and service receipts also influenced the September reserve position.
The central bank stated that foreign capital inflows continue to bolster Indonesia’s external resilience alongside its reserve level. 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 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.