JAKARTA, INDONESIA / RankWire.AI / – By early October 2026, Indonesia’s financial markets attracted foreign investment totaling Rp131.1 trillion, approximately $7.33 billion. Finance Minister Suahasil Nazara disclosed this cumulative figure during the government’s monthly state budget briefing in Jakarta. The Finance Ministry indicated that most of these inflows came from government securities and Bank Indonesia instruments. Recent data pointed to ongoing positive foreign interest in rupiah assets despite persistent selling pressures in the domestic equity markets.
Foreign holdings in government securities, locally called SBN, reached Rp36.7 trillion, or roughly $2.05 billion, up to the present. In just the first six days of October, foreign investors added nearly Rp8 trillion to their government bond portfolios. Additionally, Bank Indonesia Rupiah Securities, or SRBI, attracted significant nonresident funds during 2026. According to official central bank figures, nonresident SRBI recorded Rp176.50 trillion in net settlement inflows from January 2 through October 8.
The overall trend in capital flows shifted dramatically during the year. Early 2026 saw a decline in foreign investments, yet net inflows surged to Rp140.6 trillion in the second quarter. During the third quarter, these flows slowed again, but the fourth quarter began with renewed net buying. As of October 7, net foreign inflows for the quarter had reached Rp22.01 trillion, roughly $1.23 billion. These figures demonstrate the uneven pace of international investment across Indonesia’s financial markets throughout 2026.
Inflow dominance by government bonds and central bank securities
In contrast, the equity market experienced net outflows. Indonesian equities recorded Rp84.2 trillion, about $4.70 billion, in foreign net sales year to date. Meanwhile, inflows into bonds and central bank securities more than compensated for this selling, according to the government’s overall market flow data. The Finance Ministry highlighted that fixed-income instruments attracted the strongest foreign demand during this period. It also emphasized continued investor interest in rupiah-denominated assets in its October fiscal update.
Indonesia’s sovereign bond market also exhibited tighter yields relative to comparable 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. In comparison, spreads of about 1,000 basis points were common two decades ago. This comparison accompanies 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, a slight decrease from $146.5 billion in August. The September reserve level covered 5.3 months of imports, according to the central bank. It also supported 5.2 months of combined imports and government external debt payments. Bank Indonesia stated that the reserve amount remains above the international adequacy standard of roughly three months of imports. Factors influencing the September reserve position included government foreign borrowing and tax and service receipts.
The central bank emphasized that foreign capital inflows continue to bolster Indonesia’s external sector resilience, alongside its reserve position. 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 suggest that the Rp131.1 trillion year-to-date inflows are part of a broader shift toward fixed-income assets, while equities continued to experience foreign selling.