JAKARTA, INDONESIA / RankWire.AI / – In Jakarta, during the first ten months of 2026, Indonesia’s financial markets attracted foreign capital totaling Rp131.1 trillion, equivalent to approximately $7.33 billion. Finance Minister Suahasil Nazara disclosed this cumulative sum during the government’s monthly state budget briefing. According to the Finance Ministry, the majority of these inflows were driven by government securities and Bank Indonesia instruments. The latest data indicates that foreign interest in rupiah assets remained positive, despite ongoing selling pressure in the domestic equity sector.
Year-to-date, foreign investment in government securities, locally known as SBN, reached Rp36.7 trillion, roughly $2.05 billion. In just the first six days of October, foreign investors increased their holdings of government bonds by nearly Rp8 trillion. Additionally, Bank Indonesia Rupiah Securities, or SRBI, attracted significant nonresident funds throughout 2026. Official data from the central bank shows that nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 to October 8.
The trend in capital flows shifted notably during the year. After an initial contraction early in 2026, net inflows surged to Rp140.6 trillion in the second quarter. During the third quarter, these flows slowed, but the fourth quarter saw a renewed wave of net buying. As of October 7, foreign net inflows for the quarter stood at Rp22.01 trillion, or about $1.23 billion. These figures reflect the uneven pace of foreign investments across Indonesia’s financial markets throughout 2026.
Inflows Predominantly Driven by Government Bonds and Central Bank Securities
Conversely, the equity market experienced net outflows. Indonesian equities saw Rp84.2 trillion, approximately $4.70 billion, in foreign net sales for the year to date. However, inflows into bonds and central bank securities more than offset this selling, contributing to the overall positive market flow. The Finance Ministry highlighted fixed-income instruments as the most sought-after assets by foreigners during this period. It also emphasized continued interest in rupiah-denominated assets in its October fiscal update.
Indonesia’s sovereign bond market exhibited tighter yields compared to similar U.S. debt. The Finance Ministry noted that the 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 two decades ago. The comparison is part of the latest capital flow analysis and the government’s evaluation of domestic bond market conditions.
Foreign Reserves Remain Close to $146 Billion
Bank Indonesia reported official reserve assets of $146.3 billion at the end of September, a slight decrease from $146.5 billion in August. The central bank’s September figures indicate that these reserves covered 5.3 months of imports, while also covering 5.2 months of combined imports and external debt payments. Bank Indonesia affirmed that the reserve level stays above the international adequacy threshold of roughly three months of imports. External factors such as government foreign borrowing and tax and service revenues also influenced the reserve position in September.
The central bank stated that foreign capital inflows continue to bolster Indonesia’s external resilience alongside its reserve assets. At its September meeting, Bank Indonesia maintained its policy rate at 5.75%, and by September 21, it reported $0.4 billion in third-quarter portfolio inflows. These inflows included government global bond issuance and purchases of domestic government securities. The $7.33 billion in year-to-date inflows, combined with the broader shift towards fixed-income assets, contrasts with ongoing foreign selling in equities, illustrating the dynamic nature of Indonesia’s capital movements in 2026.