Approximately $9 billion in foreign inflows have been recorded in rupiah-denominated Indonesian government securities and Bank Indonesia Rupiah Securities (SRBI) as of June 2026. The Bank of Indonesia triggered this reversal by raising its benchmark rate by a cumulative 100 basis points in May and June 2026, bringing the policy rate to 5.75%, to offer more attractive yields to global bond investors. Foreign ownership of Indonesian sovereign bonds rebounded to approximately 12.8% by mid-2026, from a low of 13% in late 2025, but remains far below the pre-pandemic peak of 39-40%. In the third quarter of 2026, net inflows reached $1.8 billion, with 10.2 trillion IDR in cumulative net inflows from bond auctions in July and August alone. The path back to pre-COVID levels remains long: foreign investors currently hold roughly one-third of what they owned before the pandemic, and the significant growth in government debt issuance since 2020 makes the recovery even more demanding in absolute terms.
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