Foreign Investors Flee with US$1.7 Billion from Indonesia During US-Iran War

Foreign capital flowed out of Indonesia at a significant rate during the period of escalating conflict in the Middle East. According to Bank Indonesia (BI) records, following the outbreak of war between Iran and the United States and Israel at the end of February 2026, the pace of foreign capital outflows until the end of March 2026 reached US$1.7 billion. “Foreign portfolio investment from January to March recorded a net outflow of US$1.7 billion,” said BI Governor Perry Warjiyo during a press conference on the results of the board of governors meeting on Wednesday (22/4/2026). Nevertheless, Perry emphasised that in April 2026, foreign capital inflows returned strongly. The value reached US$1.9 billion. According to him, this was due to the tendency of global investors flocking to government bond instruments, namely SBN, and BI’s monetary operation instruments, namely SRBI, because of their attractive returns. “Supported by inflows into SRBI and SBN driven by an increase in yields,” he stressed.