Foreign Capital Inflows of US$1.6 Billion Enter Indonesia, Supporting Rupiah Stability: Bank Indonesia
Jakarta, VIVA – Bank Indonesia (BI) Senior Deputy Governor Destry Damayanti reported that from the beginning of the year through 13 February 2026, net foreign portfolio investment inflows into Indonesia reached US$1.6 billion.
Based on settlement data as of 18 February, Destry stated that inflows into Bank Indonesia Rupiah Securities (SRBI) reached Rp 31 trillion, whilst Government Securities (SBN) recorded approximately Rp 530 billion. With these continuing inflows, the year-to-date total reached approximately US$1.6 billion.
“This is very helpful indeed for the stability of the rupiah itself,” said Destry during a press teleconference on Thursday, 19 February 2026.
She explained that the capital inflows were primarily supported by substantial foreign capital flows into SRBI and SBN. Meanwhile, equity investments continued to record outflows.
Destry added that the central bank is also continuing to deepen the foreign exchange market for rupiah-Chinese renminbi (RMB) transactions, to support Indonesia-China trade transactions, particularly in the implementation of local currency transactions (LCT).
She noted that LCT transactions with China continue to increase, with the value reaching US$2.7 billion in December 2025. Consequently, BI continues to encourage the use of local currencies so that transactions are not entirely dependent on the US dollar.
“If we look at the supply, it is also gradually increasing. But of course we still need continued efforts to increase the supply of CNY and CNH in our foreign exchange market,” she said.
Meanwhile, BI Governor Perry Warjiyo considers the current rupiah exchange rate to be below its fair value, or undervalued compared with Indonesia’s economic fundamentals. This includes consistency with inflation control in line with the target of 2.5 per cent plus or minus 1 percentage point for 2026 and 2027.
“Fundamental factors, namely inflation indicators, economic growth, yields, as well as other indicators, all suggest that the rupiah should be more stable and tend to strengthen,” said Perry.
However, Perry emphasised that pressure on the rupiah is more influenced by technical factors and global risk premiums, which trigger short-term volatility in financial markets.
“Therefore, BI continues to intensify rupiah exchange rate stabilisation through interventions in the offshore non-delivery forward (NDF) market, as well as spot transactions and domestic non-delivery forward (DNDF) in the onshore market,” he said.