JAKARTA, INDONESIA / RankWire.AI / – Through the beginning of October 2026, Indonesia accumulated Rp131.1 trillion, approximately $7.33 billion, in foreign capital inflows. Finance Minister Suahasil Nazara disclosed this figure during the government’s latest state budget briefing in Jakarta. The majority of foreign funds flowed into government bonds and securities issued by the central bank. Despite ongoing reductions in foreign holdings of Indonesian stocks, the Finance Ministry noted that the total inflows for the year remained positive.
Foreign investors directed Rp36.7 trillion, roughly $2.05 billion, into government securities known as SBN during this period. During the first six days of October alone, overseas investors added nearly Rp8 trillion to government bonds. Additionally, Bank Indonesia Rupiah Securities, called SRBI, experienced strong demand from nonresident investors. Central bank data indicated that net foreign settlement inflows into SRBI reached Rp176.50 trillion from January 2 to October 8.
Capital flows experienced notable shifts across the first three quarters of 2026. Indonesia saw weaker foreign inflows early in the year, but these increased to Rp140.6 trillion in the second quarter. Investment activity then decelerated in the third quarter, only to gain momentum again at the start of the fourth quarter. By October 7, net foreign investment had reached Rp22.01 trillion, about $1.23 billion, according to the latest fiscal data presented.
Majority of foreign investment directed into fixed-income assets
During the same timeframe, Indonesia’s stock market followed a different pattern. Foreign investors withdrew a net Rp84.2 trillion, or roughly $4.70 billion, from domestic equities so far in 2026. However, strong inflows into bonds and central bank instruments offset these withdrawals, maintaining overall positive capital flows. The Finance Ministry identified fixed-income assets as the primary destination for foreign funds. Consequently, government securities and SRBI played a significant role in sustaining the total foreign capital inflows.
The condition of Indonesia’s sovereign bond market also reflected a narrower yield spread compared to U.S. government debt. The spread between 10-year rupiah bonds and comparable U.S. Treasuries narrowed to 188 basis points. Indonesian officials compared this level to spreads of around 1,000 basis points approximately twenty years ago. These figures accompanied the government’s latest review of the domestic debt markets and offered additional context for the steady foreign demand for Indonesian government securities during 2026.
Foreign reserves in Indonesia stay above $146 billion
Bank Indonesia announced official foreign exchange reserves of $146.3 billion at the end of September. This was slightly below the $146.5 billion recorded in August. The September total covered 5.3 months of imports and remained above the international adequacy benchmark of approximately three months. It also accounted for 5.2 months of combined imports and external debt payments. Movements in the reserve position were influenced by foreign government borrowing, tax revenue, and service income.
Bank Indonesia continues to monitor foreign portfolio flows as part of its assessment of financial and external conditions. The central bank maintained its benchmark policy rate at 5.75% during the September meeting. Portfolio investments in the third quarter included issuance of government global bonds and purchases of domestic government securities. The year-to-date inflow of Rp131.1 trillion emphasizes the concentration of foreign demand in fixed-income markets, while Indonesian equities experienced consistent net foreign selling during this period.