JAKARTA, INDONESIA / RankWire.AI / – Foreign capital inflows into Indonesia’s financial markets reached Rp131.1 trillion, about $7.33 billion, through early October 2026. Finance Minister Suahasil Nazara announced the cumulative figure during the government’s monthly state budget briefing in Jakarta. The Finance Ministry said government securities and Bank Indonesia instruments accounted for most of the inflows. The latest data showed foreign demand for rupiah assets remained positive despite continued selling in the domestic equity market.
Foreign investment in government securities, known locally as SBN, reached Rp36.7 trillion, or about $2.05 billion, year to date. In the first six days of October alone, overseas investors added nearly Rp8 trillion to their holdings of government bonds. Bank Indonesia Rupiah Securities, or SRBI, also drew substantial nonresident funds during 2026. Official central bank data showed nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 through October 8.
The overall flow pattern changed sharply during the year. Foreign capital contracted early in 2026 before net inflows jumped to Rp140.6 trillion in the second quarter. Flows then moderated during the third quarter, while the fourth quarter opened with renewed net buying. By October 7, net foreign inflows for the quarter had reached Rp22.01 trillion, or about $1.23 billion. The figures highlight the uneven pace of overseas investment across Indonesia’s financial markets during 2026.
Government bonds and central bank securities lead inflows
The equity market moved in the opposite direction. Indonesian shares recorded Rp84.2 trillion, about $4.70 billion, in net foreign outflows year to date. Bond and central bank security inflows more than offset that selling in the government’s cumulative market-flow calculation. The Finance Ministry said fixed-income instruments accounted for the strongest foreign demand in the period. It also pointed to continued interest in rupiah-denominated assets as part of its October fiscal update.
Indonesia’s sovereign bond market also showed tighter pricing relative to comparable U.S. debt. The Finance Ministry said the yield spread between 10-year rupiah government bonds and 10-year U.S. Treasuries narrowed to 188 basis points. The ministry contrasted that level with spreads that could reach about 1,000 basis points two decades ago. The comparison accompanied the latest capital-flow figures and the government’s assessment of conditions in the domestic bond market.
Foreign reserves remain near $146 billion
Bank Indonesia reported official reserve assets of $146.3 billion at the end of September, little changed from $146.5 billion in August. The September total covered 5.3 months of imports, according to the central bank. It also covered 5.2 months of imports and government external debt servicing combined. Bank Indonesia said the reserve level remained above the international adequacy benchmark of about three months of imports. Government foreign borrowing and tax and service receipts also affected the September reserve position.
The central bank said foreign capital inflows continued to support Indonesia’s external-sector resilience alongside its reserve position. Bank Indonesia kept its policy rate at 5.75% at its September meeting and reported $0.4 billion in third-quarter portfolio inflows through September 21. Those flows 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 shift toward fixed-income assets while equities continued to record foreign selling.