JAKARTA, INDONESIA / RankWire.AI / – As of early October 2026, Indonesia’s financial markets saw foreign capital inflows totaling Rp131.1 trillion, approximately $7.33 billion. Finance Minister Suahasil Nazara disclosed this cumulative amount during the government’s monthly state budget briefing held in Jakarta. The Ministry of Finance indicated that government securities and Bank Indonesia instruments constituted the majority of these inflows. Data also revealed that foreign demand for rupiah-denominated assets remained robust despite ongoing selling pressure in the domestic equity market.
Foreign holdings in government securities, locally called SBN, reached Rp36.7 trillion, roughly $2.05 billion, up to this point in 2026. During the first six days of October alone, foreign investors increased their holdings of government bonds by nearly Rp8 trillion. Additionally, Bank Indonesia Rupiah Securities, known as SRBI, attracted significant foreign funds throughout 2026. Official figures from the central bank indicated that nonresident SRBI recorded net settlement inflows of Rp176.50 trillion from January 2 through October 8.
The overall flow pattern shifted markedly over the year. Early in 2026, foreign capital withdrew from the markets, but net inflows surged to Rp140.6 trillion in the second quarter. This momentum slowed during the third quarter, yet the fourth quarter began with renewed foreign buying. By October 7, net foreign inflows for the quarter reached Rp22.01 trillion, or about $1.23 billion. These figures underscore the uneven pace of international investment activity across Indonesia’s financial sectors during 2026.
Inflows Primarily Driven by Government Bonds and Central Bank Securities
In contrast, the equity market experienced net foreign outflows of Rp84.2 trillion, roughly $4.70 billion, so far in 2026. Nonetheless, inflows into bonds and central bank securities more than compensated for this selling activity in the overall market flow calculation. The Ministry of Finance highlighted that fixed-income instruments attracted the strongest foreign interest during this period. The report also pointed to sustained interest in rupiah-denominated assets as part of its October fiscal update.
Indonesia’s sovereign bond market also exhibited tighter yields compared to similar U.S. debt. The 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 spreads that could reach about 1,000 basis points two decades ago. This comparison was made alongside the latest capital flow data and the government’s assessment of domestic bond market conditions.
Reserves Remain Close to $146 Billion, Supported by Inflows
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 stated that this total covered 5.3 months of imports, and also accounted for 5.2 months of combined imports and external debt servicing. The reserve level remained above the international adequacy benchmark of about three months of imports. The central bank noted that government foreign borrowing along with tax and service receipts also influenced the reserve position in September.
Bank Indonesia emphasized that foreign capital inflows continued to bolster Indonesia’s external resilience and reserve adequacy. The central bank 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 $7.33 billion inflow for 2026, as indicated by the Rp131.1 trillion figure, reflects a broader shift toward fixed-income assets while foreign investors continued to sell equities.