JAKARTA, INDONESIA / RankWire.AI / – Through the beginning of October 2026, Indonesia attracted Rp131.1 trillion, approximately $7.33 billion, in foreign capital inflows. Finance Minister Suahasil Nazara announced this figure during the latest state budget briefing held by the government in Jakarta. The majority of foreign investments were directed into government bonds and securities issued by the central bank. The Ministry of Finance indicated that the total remains positive for the year despite a continued reduction by overseas investors in their holdings of Indonesian shares.
During 2026, foreign investors allocated Rp36.7 trillion, roughly $2.05 billion, into government securities known as SBN. In the first six days of October alone, foreign buyers added nearly Rp8 trillion to government bonds. Additionally, Bank Indonesia Rupiah Securities, known as SRBI, experienced robust demand from nonresident investors. According to official data, net foreign settlement inflows into SRBI reached Rp176.50 trillion from January 2 to October 8.
The pattern of capital flows shifted notably across the first three quarters of 2026. Initial months saw weaker foreign investment, but inflows increased to Rp140.6 trillion during the second quarter. Investment momentum slowed again in the third quarter, only to pick up at the beginning of the fourth quarter. As of October 7, net foreign investment reached Rp22.01 trillion, approximately $1.23 billion, based on the latest fiscal figures presented.
Most foreign funds are directed towards fixed-income assets
In contrast to the trend in the stock market during the same period, foreign investors withdrew a net Rp84.2 trillion, about $4.70 billion, from domestic equities year to date. However, strong inflows into bonds and central bank instruments offset these withdrawals, contributing to the overall positive foreign capital flow. The Ministry of Finance identified fixed-income assets as the primary destination for overseas investments, with government securities and SRBI playing dominant roles in sustaining the positive total.
Indonesia’s sovereign bond market also showed a reduced yield spread against U.S. government debt, with the difference between 10-year rupiah bonds and U.S. Treasuries narrowing to 188 basis points. Officials in Indonesia compared this level to the approximate 1,000 basis points spread seen around two decades ago. These figures reflect the latest assessment of the country’s debt markets and offer further insight into the persistent foreign interest in Indonesian government securities throughout 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 in August. The September total covers 5.3 months of imports and exceeds the international adequacy standard of approximately three months. It also accounts for 5.2 months of combined imports and external debt payments. Movements in the reserve position are influenced by foreign government borrowing, tax revenues, and income from services.
The central bank also monitors foreign portfolio flows as part of its assessment of financial and external conditions. At its September meeting, Bank Indonesia maintained its benchmark rate at 5.75%. During the third quarter, portfolio investments included issuance of government global bonds and purchases of domestic government securities. The year-to-date inflow of Rp131.1 trillion illustrates that foreign demand has primarily been concentrated in fixed-income markets. Meanwhile, Indonesian equities experienced continued substantial net foreign selling during this period.