Foreign Capital Inflows Surge in Indonesian Financial Market

Significant Capital Movements Recorded

Bank Indonesia (BI) has reported significant foreign capital inflows into the country's financial market during the period of January 5-8, 2026. The central bank recorded a total inflow of Rp1.04 trillion during these four days. According to Ramdan Denny Prakoso, Executive Director of BI's Communication Department, the data compiled by BI from domestic financial market transactions showed that foreign investors made net purchases in both the stock market and Bank Indonesia's Rupiah Securities (SRBI).

Breakdown of Capital Flows

The capital inflows were primarily driven by two key components: net purchases in the stock market amounting to Rp1.78 trillion and investments in SRBI totaling Rp1.04 trillion. However, this positive trend was partially offset by a capital outflow of Rp1.38 trillion from the Government Bond (SBN) market. The net result was a total capital inflow of Rp1.04 trillion during the period.

Market Implications

The observed capital flows indicate a mixed sentiment among foreign investors towards Indonesian financial assets. While there was significant interest in both the equity market and BI's short-term securities, the outflow from the SBN market suggests some caution regarding longer-term government debt. This mixed signal reflects the complex dynamics at play in emerging markets like Indonesia, where global economic trends, domestic monetary policy, and investor risk appetite all play crucial roles in determining capital flows.