JAKARTA, INDONESIA / RankWire.AI / – Indonesia accumulated Rp131.1 trillion, approximately $7.33 billion, in foreign capital inflows through early October 2026. Finance Minister Suahasil Nazara announced this figure during the government’s latest state budget briefing in Jakarta. The majority of foreign investments went into government bonds and central bank securities. The Finance Ministry indicated that the year-to-date total remains positive despite overseas investors reducing their holdings in Indonesian shares.
Foreign investors contributed Rp36.7 trillion, roughly $2.05 billion, to government securities known as SBN during the year. During the first six days of October alone, foreign buyers added nearly Rp8 trillion in government bonds. Bank Indonesia Rupiah Securities, or SRBI, also experienced strong demand from nonresident investors. According to central bank data, net foreign settlement inflows into SRBI reached Rp176.50 trillion from January 2 to October 8.
Capital flows varied notably across the first three quarters of 2026. Foreign inflows weakened early in the year but increased to Rp140.6 trillion in the second quarter. Investment activity slowed again in the third quarter. At the start of the fourth quarter, foreign inflows picked up once more. By October 7, net foreign investment reached Rp22.01 trillion, about $1.23 billion, according to the latest fiscal figures presented.
Fixed-income securities draw majority of foreign capital
During the same period, Indonesia’s stock market experienced a different trend. Foreign investors withdrew a net Rp84.2 trillion, or approximately $4.70 billion, from domestic equities year to date. However, strong inflows into bonds and central bank instruments offset these withdrawals, keeping overall foreign capital flows positive. The Finance Ministry identified fixed-income assets as the primary destination for foreign funds. As a result, government securities and SRBI played the biggest roles in maintaining this positive trend.
The sovereign bond market also showed a narrower yield spread against U.S. government debt. The gap between 10-year rupiah bonds and comparable U.S. Treasuries narrowed to 188 basis points. Indonesian officials compared this to spreads of around 1,000 basis points roughly twenty years ago. These figures reflect the government’s latest assessment of the domestic debt markets and offer context for the steady foreign demand for Indonesian government securities in 2026.
Indonesia’s foreign reserves remain above $146 billion
Bank Indonesia reported official foreign exchange reserves of $146.3 billion at the end of September. This was slightly below the $146.5 billion recorded in August. The September total covered 5.3 months of imports and remained above the international adequacy benchmark of about three months. It also covered 5.2 months of combined imports and external debt payments. Movements in the reserve position were supported by foreign government borrowing, tax revenues, and service income.
Bank Indonesia monitors foreign portfolio flows as part of its assessment of financial and external conditions. The central bank maintained its benchmark policy rate at 5.75% during its September meeting. Portfolio investment 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 illustrates that foreign interest remains concentrated in fixed-income markets. Meanwhile, Indonesian equities continued to see substantial net foreign selling during this period.