JAKARTA, INDONESIA / RankWire.AI / – By early October 2026, Indonesia had 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 investment was directed into government bonds and securities issued by the central bank. Despite foreign investors gradually reducing their holdings in Indonesian shares, the Finance Ministry stated that the overall inflow remained positive for the year thus far.
Foreign investors allocated Rp36.7 trillion, roughly $2.05 billion, into government securities known as SBN during this period. During the first six days of October alone, overseas buyers added nearly Rp8 trillion to government bonds. Demand from nonresident investors for Bank Indonesia Rupiah Securities, or SRBI, remained robust. Central bank data indicated net foreign settlement inflows into SRBI reached Rp176.50 trillion from January 2 through October 8.
Movement of capital fluctuated notably across the first three quarters of 2026. Indonesia experienced weaker foreign inflows early in the year, but these rose to Rp140.6 trillion in the second quarter. Investment activity then decelerated in the third quarter. However, at the start of the fourth quarter, foreign inflows gained renewed momentum. According to the latest fiscal update, net foreign investment stood at Rp22.01 trillion, or about $1.23 billion, as of October 7.
Fixed-income securities draw the majority of foreign capital
Throughout the same period, Indonesia’s stock market experienced a different trend. Foreign investors withdrew a net Rp84.2 trillion, equivalent to approximately $4.70 billion, from local equities so far this year. However, strong inflows into bonds and central bank instruments offset these withdrawals, ensuring the overall positive flow of foreign funds. The Finance Ministry identified fixed-income assets as the primary target for foreign investment, with government securities and SRBI playing key roles in maintaining the positive total of foreign capital inflows.
The conditions in Indonesia’s sovereign bond market also showed a reduced yield spread against U.S. government debt. The spread between 10-year rupiah bonds and similar U.S. Treasuries narrowed to 188 basis points, down from wider levels in the past. Indonesian officials compared this to spreads of around 1,000 basis points approximately twenty years ago. These figures, part of the government’s latest assessment of the domestic debt market, also provide context for the sustained foreign demand for Indonesian government securities during 2026.
Bank Indonesia reports foreign reserves above $146 billion
Bank Indonesia announced that its official foreign exchange reserves stood at $146.3 billion at the end of September, slightly below the $146.5 billion recorded in August. These reserves cover 5.3 months of imports and remain well above the international benchmark of roughly three months. They also suffice to cover 5.2 months of combined imports and external debt payments. Movements in the reserve level were influenced by foreign government borrowing, tax revenues, and service income.
Bank Indonesia also monitors foreign portfolio flows as part of its assessment of external and financial stability. The central bank maintained its benchmark rate at 5.75% during its September meeting. Portfolio investments in the third quarter included issuance of government global bonds and purchases of domestic government securities. The year-to-date inflow of Rp131.1 trillion underscores the focus of foreign investors on fixed-income markets, even as Indonesian equities continued to see substantial net foreign selling during this period.