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 shared this data during the latest state budget briefing held by the government in Jakarta. The majority of these foreign funds were channeled into government bonds and securities issued by the central bank. According to the Finance Ministry, the total for the year remains positive despite overseas investors continuing to reduce their holdings of Indonesian equities.
Foreign investors directed Rp36.7 trillion, roughly $2.05 billion, into government securities known as SBN throughout the year. During the first six days of October alone, foreign buyers added nearly Rp8 trillion to government bonds. Additionally, Bank Indonesia Rupiah Securities, or SRBI, experienced strong demand from nonresident investors. Central bank data indicated that net foreign settlement inflows into SRBI reached Rp176.50 trillion from January 2 to October 8.
The movement of capital shifted notably over the first three quarters of 2026. Indonesia saw weaker foreign inflows at the beginning of the year, which then increased to Rp140.6 trillion in the second quarter. Investment activity decelerated during the third quarter, but foreign inflows regained momentum at the start of the fourth quarter. By October 7, net foreign investment had reached Rp22.01 trillion, approximately $1.23 billion, according to the latest fiscal update figures.
Most foreign investment flows into fixed-income assets
In contrast, Indonesia’s stock market experienced a different trend within the same period. Foreign investors withdrew a net Rp84.2 trillion, about $4.70 billion, from domestic equities year to date. However, this outflow was offset by substantial inflows into bonds and central bank instruments, which kept the overall foreign investment position positive. The Finance Ministry highlighted fixed-income assets as the primary target for international capital, with government securities and SRBI playing crucial roles in maintaining the positive total of foreign capital inflows.
Furthermore, conditions in Indonesia’s sovereign bond market showed 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 with spreads of around 1,000 basis points approximately twenty years ago. These figures accompany the government’s latest review of the domestic debt markets and offer additional context for the persistent foreign interest in Indonesian government securities during 2026.
Indonesia’s foreign reserves stay above $146 billion
Bank Indonesia announced official foreign exchange reserves of $146.3 billion at the end of September. This compares to $146.5 billion recorded a month earlier. The September figure covers 5.3 months of imports and remains above the international adequacy standard of roughly three months. It also accounts for 5.2 months of combined imports and government external debt payments. Movements in the reserve level are also influenced by foreign government borrowing, tax revenues, and service income.
Bank Indonesia continues monitoring 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 issuance of government global bonds and purchases of domestic government securities. The year-to-date inflow of Rp131.1 trillion illustrates how foreign demand has primarily focused on fixed-income markets, while Indonesian equities saw continued significant net foreign sales during this period.