JAKARTA, INDONESIA / RankWire.AI / – Indonesia recorded Rp131.1 trillion, about $7.33 billion, in foreign capital inflows through early October 2026. Finance Minister Suahasil Nazara presented the figure during the government’s latest state budget briefing in Jakarta. Most foreign investment moved into government bonds and central bank securities. The Finance Ministry said the year-to-date total remained positive even as overseas investors continued to reduce their exposure to Indonesian shares.
Foreign investors placed Rp36.7 trillion, or roughly $2.05 billion, into government securities known as SBN during the year. Overseas buyers added nearly Rp8 trillion in government bonds during the first six days of October alone. Bank Indonesia Rupiah Securities, known as SRBI, also attracted strong demand from nonresident investors. Central bank figures showed net foreign settlement inflows into SRBI reached Rp176.50 trillion from January 2 through October 8.
Capital movements shifted significantly across the first three quarters of 2026. Indonesia recorded weaker foreign flows early in the year before inflows climbed to Rp140.6 trillion during the second quarter. Investment activity then slowed in the third quarter. Foreign inflows gained momentum again at the start of the fourth quarter. Net foreign investment reached Rp22.01 trillion, about $1.23 billion, by October 7, according to figures presented with the latest fiscal update.
Fixed-income assets attract most foreign investment
Indonesia’s stock market recorded a different trend during the same period. Foreign investors withdrew a net Rp84.2 trillion, equivalent to about $4.70 billion, from domestic equities year to date. Stronger inflows into bonds and central bank instruments offset those withdrawals in the overall calculation. The Finance Ministry identified fixed-income assets as the main destination for overseas funds. Government securities and SRBI therefore played the largest role in keeping total foreign capital flows positive.
Conditions in Indonesia’s sovereign bond market also showed a narrower yield gap 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 that level with spreads of around 1,000 basis points about two decades ago. The figures accompanied the government’s latest assessment of domestic debt markets. They also provided additional context for the continued foreign demand for Indonesian government securities during 2026.
Indonesia maintains foreign reserves above $146 billion
Bank Indonesia reported $146.3 billion in official foreign exchange reserves at the end of September. Reserves stood at $146.5 billion one month earlier. The September total covered 5.3 months of imports and remained above the international adequacy benchmark of about three months. It also covered 5.2 months of imports and government external debt payments combined. Foreign government borrowing, tax receipts and service income also contributed to movements in the country’s reserve position.
Bank Indonesia has also tracked foreign portfolio flows as part of its monitoring of financial and external conditions. The central bank kept its benchmark policy rate at 5.75% at its September meeting. Portfolio investment during the third quarter included government global bond issuance and purchases of domestic government securities. The latest Rp131.1 trillion year-to-date inflow shows how foreign demand has concentrated in fixed-income markets. Indonesian equities, by contrast, continued to register substantial net foreign selling during the period.