Indonesian Finance Minister Optimistic on Foreign Capital Inflow
Translated from Indonesian, summarized and contextualized by DistantNews.
At a glance
- Indonesian Finance Minister Purbaya Yudhi Sadewa is optimistic about foreign capital inflow into the country's financial markets.
- Despite outflows in the stock market, net foreign capital inflow into government bonds and Bank Indonesia Rupiah Securities (SRBI) remains positive.
- This inflow counters concerns about foreign capital leaving Indonesia.
Indonesian Finance Minister Purbaya Yudhi Sadewa expressed optimism regarding foreign capital flows into the nation's financial markets, aiming to dispel concerns about capital flight. He highlighted that as of June 3, 2026, the second quarter saw a net foreign capital inflow of Rp 60.9 trillion into Indonesia's financial markets. This figure comprises inflows into government bonds (SBN) totaling Rp 14.4 trillion and Bank Indonesia Rupiah Securities (SRBI) amounting to Rp 70.1 trillion, which offset an outflow of Rp 23.5 trillion from the stock market.
"What's important is that we look at the net figure; the second quarter is still positive. So, this answers many people's doubts," Sadewa stated during a press conference on the State Budget (APBN) on Friday, June 5, 2026. He noted that the first quarter of 2026 experienced net outflows of Rp 28.1 trillion, with outflows from government bonds and stocks, while only SRBI saw inflows. However, the trend reversed in the second quarter.
Cumulatively from January to early June 2026, foreign capital recorded a net inflow of Rp 54.3 trillion. This includes a net outflow of Rp 10.8 trillion from government bonds and Rp 56.4 trillion from the stock market. Only SRBI experienced a significant inflow of Rp 99.9 trillion. Sadewa acknowledged that the substantial increase in SRBI inflows was due to Bank Indonesia's active measures to stabilize the rupiah using this instrument.
What's important is that we look at the net figure; the second quarter is still positive. So, this answers many people's doubts.
Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.