JAKARTA, INDONESIA / RankWire.AI / – As of early October 2026, Indonesia has 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 in Jakarta. The majority of foreign investments targeted government bonds and securities issued by the central bank. Despite a continued reduction in foreign holdings of Indonesian equities, the Finance Ministry indicated that the overall year-to-date capital flow remained positive.
During 2026, foreign investors injected Rp36.7 trillion, roughly $2.05 billion, into government securities known as SBN. In the first six days of October alone, foreign investors added nearly Rp8 trillion to government bonds. Demand from nonresident investors also remained robust for Bank Indonesia Rupiah Securities, known as SRBI. According to official data, net foreign settlement inflows into SRBI reached Rp176.50 trillion from January 2 through October 8.
Foreign capital flows experienced notable shifts throughout the first three quarters of 2026. After weaker inflows early in the year, Indonesia saw a rise to Rp140.6 trillion during the second quarter. Investment activity slowed again in the third quarter but gained momentum at the start of the fourth quarter. As of October 7, net foreign investment totaled Rp22.01 trillion, or about $1.23 billion, per the latest fiscal figures presented.
Most foreign investment directed into fixed-income assets
The Indonesian stock market experienced a contrasting trend during the same period, with foreign investors withdrawing a net Rp84.2 trillion, or around $4.70 billion, from local equities year to date. However, substantial inflows into bonds and central bank instruments offset these outflows, maintaining a positive overall balance. The Finance Ministry highlighted fixed-income assets as the primary recipients of foreign funds, with government securities and SRBI playing key roles in sustaining the positive foreign capital flow.
The sovereign bond market in Indonesia also reflected a narrowing yield spread against U.S. government debt. The spread between 10-year rupiah bonds and comparable U.S. Treasuries shrank to 188 basis points. Officials compared this level to spreads of around 1,000 basis points approximately two decades ago. These figures are part of the latest assessment of the domestic debt markets and offer context for the ongoing foreign demand for Indonesian government securities in 2026.
Foreign reserves remain robust 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. This reserve level covers 5.3 months of imports and exceeds the internationally recommended minimum of around three months. Additionally, it accounts for 5.2 months of combined imports and external debt payments. Movements in reserves are influenced by foreign government borrowing, tax revenues, and income from services.
The central bank also monitors foreign portfolio flows as part of its broader assessment of financial and external stability. At its September policy meeting, Bank Indonesia maintained its benchmark rate at 5.75%. Portfolio investments during the third quarter mainly involved government global bond issuance and purchases of domestic government securities. The Rp131.1 trillion inflow year-to-date underscores the concentration of foreign interest in fixed-income markets, while Indonesian equities continued to experience significant net foreign selling during the same period.