JAKARTA, INDONESIA / RankWire.AI / – Indonesia has attracted 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 continuing to trim their holdings of Indonesian shares.
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 in government bonds. Bank Indonesia Rupiah Securities, or SRBI, also experienced robust 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.
Throughout the first three quarters of 2026, capital flows in Indonesia showed notable shifts. Early in the year, foreign investment was relatively weak, but inflows increased to Rp140.6 trillion in the second quarter. Investment activity then slowed during the third quarter. However, at the beginning of the fourth quarter, foreign inflows regained momentum. By October 7, net foreign investment had reached Rp22.01 trillion, approximately $1.23 billion, as reported in the latest fiscal update figures.
Most foreign investment flows into fixed-income assets
During the same period, Indonesia’s stock market experienced a different trend. Foreign investors withdrew a net Rp84.2 trillion, equivalent to about $4.70 billion, from domestic equities year to date. Nonetheless, increased inflows into bonds and central bank instruments offset these withdrawals, maintaining a positive overall flow. The Finance Ministry identified fixed-income assets as the primary destination for overseas funds. Consequently, government securities and SRBI accounted for most of the foreign capital inflows, helping to sustain the overall positive foreign investment trend.
Indonesia’s sovereign bond market also reflected a narrowing yield spread against U.S. government debt. The spread between 10-year rupiah bonds and comparable U.S. Treasuries narrowed to 188 basis points. Indonesian officials compared this level with spreads of around 1,000 basis points approximately twenty years ago. These figures accompany the government’s latest assessment of domestic debt markets and offer further context for the sustained foreign demand for Indonesian government securities during 2026.
Indonesia’s foreign reserves remain above $146 billion
Bank Indonesia reported official foreign exchange reserves totaling $146.3 billion at the end of September. This was slightly lower than the $146.5 billion recorded in August. The September reserve level covers 5.3 months of imports and stays above the international adequacy standard of roughly three months. It also suffices for 5.2 months of combined imports and external debt payments. Movements in the reserve position are influenced by foreign government borrowing, tax receipts, 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 investments in the third quarter included government global bond issuances and domestic government securities purchases. The year-to-date inflow of Rp131.1 trillion underscores the focus of foreign demand on fixed-income markets, while Indonesian equities continued to experience significant net foreign selling during this period.