JAKARTA, INDONESIA / RankWire.AI / – By early October 2026, Indonesia’s financial markets received foreign capital inflows totaling Rp131.1 trillion, approximately $7.33 billion. Finance Minister Suahasil Nazara disclosed this cumulative figure during the government’s monthly state budget briefing held in Jakarta. The majority of these inflows were driven by government securities and Bank Indonesia instruments, with data indicating sustained foreign interest in rupiah assets despite ongoing net selling in the domestic equity market.
Foreign purchases of government securities, known locally as SBN, reached Rp36.7 trillion, or roughly $2.05 billion, so far this year. During the first six days of October, foreign investors added nearly Rp8 trillion to their holdings of government bonds, according to investors. Additionally, Bank Indonesia Rupiah Securities (SRBI) attracted substantial nonresident funds throughout 2026. Official data from the central bank revealed nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 to October 8.
The pattern of capital flows experienced a notable shift during the year. After an initial contraction early in 2026, net inflows surged to Rp140.6 trillion in the second quarter. Flows then slowed in the third quarter, but the fourth quarter started with renewed foreign buying. By October 7, net foreign inflows for the quarter had reached Rp22.01 trillion, roughly $1.23 billion, illustrating the uneven pace of overseas investment across Indonesia’s financial sectors in 2026.
Government bonds and central bank securities dominate inflows
In contrast, the equity market experienced net foreign outflows of Rp84.2 trillion, approximately $4.70 billion, year to date. Despite this, inflows into bonds and central bank securities offset the equity outflows in the overall market flow calculations. The Finance Ministry emphasized that fixed-income instruments represented the strongest foreign demand during this period, and it highlighted ongoing interest in rupiah-denominated assets in its October fiscal update.
Indonesia’s sovereign bond market also displayed tighter yields compared to similar U.S. debt. The Finance Ministry noted that the yield spread between 10-year rupiah government bonds and 10-year U.S. Treasuries narrowed to 188 basis points, a significant reduction from the spreads that could reach about 1,000 basis points two decades ago. This comparison was made alongside recent capital flow figures and the government’s assessment of domestic bond market conditions.
Foreign reserves stay 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 September figure covered 5.3 months of imports, as per the central bank, and also accounted for 5.2 months of combined imports and external debt service. The reserve level remains above the international adequacy benchmark of about three months of imports, though government borrowing and tax and service receipts influenced the reserve position in September.
The central bank indicated that foreign capital inflows continue to bolster Indonesia’s external resilience along with its reserve holdings. 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, including government global bond issuance and domestic securities purchases. These figures suggest the Rp131.1 trillion inflow year-to-date reflects a broader shift toward fixed-income assets, even as foreign sales persisted in equities.