BI: Foreign capital inflows reach 8.5 billion US dollars in Q2 2026

Bank Indonesia (BI) recorded that foreign portfolio investment flows posted net inflows of 8.5 billion US dollars in the second quarter of 2026, primarily supported by Government Securities (SBN) and Bank Indonesia Rupiah Securities (SRBI). This trend continued into the third quarter of 2026 up to 20 July 2026, mainly driven by SBN which recorded net inflows of 0.1 billion US dollars.

“From the capital and financial account, various strengthening monetary policy responses pursued by Bank Indonesia in synergy with the government’s fiscal policy to increase yields on domestic financial instruments can encourage continued foreign capital inflows,” said BI Governor Perry Warjiyo during an online press conference following the BI Board of Governors Meeting in Jakarta on Wednesday.

In general, BI views that the performance of Indonesia’s balance of payments (BOP) needs to be continuously strengthened to mitigate the spillover effects of high global uncertainty. Indonesia’s trade balance from January to May 2026 cumulatively recorded a surplus of 4.03 billion US dollars, with developments in May 2026 recording a deficit of 1.61 billion US dollars.

Indonesia’s foreign exchange reserve position at the end of June 2026 remained solid at 145.6 billion US dollars, equivalent to financing 5.5 months of imports or 5.4 months of imports and government external debt payments, and well above the international adequacy standard of around 3 months of imports. BI forecasts that going forward, the 2026 current account performance will remain healthy within a deficit range of 1.3 percent to 0.5 percent of gross domestic product (GDP).

“Strengthening policy synergy between the government and Bank Indonesia continues to be pursued to bolster the external resilience of the national economy and simultaneously strengthen rupiah exchange rate stability in the face of global turmoil,” said Perry.