JAKARTA, INDONESIA / RankWire.AI / – Indonesia’s foreign capital inflows reached Rp131.1 trillion, approximately $7.33 billion, by early October 2026. Finance Minister Suahasil Nazara disclosed this figure during the government’s latest state budget briefing in Jakarta. The majority of foreign investments went into government bonds and securities issued by the central bank. According to the Finance Ministry, the total for the year so far remains positive, despite overseas investors continuing to reduce their holdings in Indonesian equities.
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, foreign buyers added nearly Rp8 trillion to government bonds. Demand from nonresident investors remained robust for Bank Indonesia Rupiah Securities, or SRBI. Central bank data indicated net foreign settlement inflows into SRBI reached Rp176.50 trillion from January 2 through October 8.
Throughout the first three quarters of 2026, capital movements experienced notable shifts. Indonesia saw weaker foreign inflows early in the year, but those surged to Rp140.6 trillion in the second quarter. Investment activity slowed down again in the third quarter, only to pick up momentum at the beginning of the fourth quarter. By October 7, net foreign investment had reached Rp22.01 trillion, approximately $1.23 billion, as per the figures shared during the latest fiscal update.
Fixed-income assets dominate foreign investment
In contrast, Indonesia’s stock market experienced a different trend during the same timeframe. Foreign investors withdrew a net Rp84.2 trillion, equivalent to about $4.70 billion, from domestic equities year to date. These withdrawals were offset by strong inflows into bonds and central bank instruments, which kept the overall foreign capital flow positive. The Finance Ministry highlighted fixed-income assets as the primary destination for overseas funds, with government securities and SRBI playing key roles in maintaining this trend.
The sovereign bond market in Indonesia also saw a reduced 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 level to spreads of around 1,000 basis points roughly twenty years ago. These figures are part of the government’s latest review of the domestic debt markets and help explain the sustained foreign interest in Indonesian government securities during 2026.
Indonesia’s 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 a month earlier. The September total covers 5.3 months of imports and remains above the international standard of around three months. It also accounts for 5.2 months of combined imports and external debt payments. Movements in the country’s reserve position are influenced by foreign government borrowing, tax revenue, and service income.
Monitoring of foreign portfolio flows is part of Bank Indonesia’s assessment of financial and external conditions. At its September meeting, the central bank maintained its benchmark policy rate at 5.75%. 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 highlights the focus of foreign demand on fixed-income markets, while Indonesian equities continued to see significant net foreign selling during this period.