JAKARTA, INDONESIA / RankWire.AI / – As of early October 2026, Indonesia has attracted Rp131.1 trillion, approximately $7.33 billion, in foreign capital inflows. Finance Minister Suahasil Nazara announced this figure during the government’s latest state budget briefing in Jakarta. The majority of foreign investments have been directed toward government bonds and central bank securities. The Finance Ministry noted that the total remains positive for the year despite ongoing reductions by overseas investors in their holdings of Indonesian shares.
Throughout 2026, foreign investors allocated Rp36.7 trillion, roughly $2.05 billion, into government securities known as SBN. During the first six days of October alone, foreign buyers added nearly Rp8 trillion to government bonds. Additionally, Bank Indonesia Rupiah Securities, or SRBI, experienced strong demand from nonresident investors. As of October 8, net foreign settlement inflows into SRBI reached Rp176.50 trillion, according to central bank data from January 2.
In the first three quarters of 2026, capital flows in Indonesia exhibited notable shifts. The country saw weaker foreign inflows at the start of the year, but these increased to Rp140.6 trillion in the second quarter. Investment activity slowed again in the third quarter, yet momentum picked up once more at the beginning of the fourth quarter. By October 7, net foreign investment had reached Rp22.01 trillion, or about $1.23 billion, as per the latest fiscal figures presented.
Majority of foreign funds go into fixed-income assets
During the same period, Indonesia’s stock market displayed a contrasting pattern. Foreign investors withdrew a net Rp84.2 trillion, or approximately $4.70 billion, from local equities year to date. However, the overall figure remained positive due to significant inflows into bonds and central bank instruments. The Finance Ministry emphasized that fixed-income assets have been the primary destination for foreign funds. Consequently, government securities and SRBI have played crucial roles in maintaining overall positive foreign capital flows.
In Indonesia’s sovereign bond market, the yield spread against U.S. government debt has narrowed. The difference between 10-year rupiah bonds and comparable U.S. Treasuries decreased to 188 basis points. Officials in Indonesia compared this with spreads of around 1,000 basis points roughly twenty years ago. These figures reflect the latest assessment of the domestic debt markets and help explain the sustained foreign interest in Indonesian government securities throughout 2026.
Foreign reserves stay above $146 billion
Bank Indonesia reported official foreign exchange reserves of $146.3 billion at the end of September, slightly below the $146.5 billion recorded one month earlier. The September total covered 5.3 months of imports and remained above the international adequacy threshold of roughly three months. It also encompassed 5.2 months of combined imports and external debt payments. Movements in the reserve position were influenced by foreign government borrowing, tax revenues, and service income.
Monitoring of foreign portfolio flows is part of Bank Indonesia’s assessment of external conditions. The central bank maintained its benchmark policy rate at 5.75% during September. Portfolio investments in the third quarter included government global bond issuance and purchases of domestic government securities. The year-to-date inflow of Rp131.1 trillion highlights a concentration of foreign demand in fixed-income markets, while Indonesian equities experienced continued significant net foreign selling during the same period.