Purbaya: Foreign Funds Start Flowing into Indonesian Government Bonds Amid Rupiah Pressure

JAKARTA, KOMPAS.com - Finance Minister Purbaya Yudhi Sadewa has disclosed that foreign investors are starting to return to Indonesia’s sovereign debt market amid global pressures and a depreciating rupiah. According to Purbaya, the government is actively taking steps to stabilise the domestic financial market, particularly the government securities market (SBN), so that global turmoil does not trigger a larger outflow of capital. “When the rupiah is volatile, the government is forced to take the initiative to stabilise the bond market. We have been in since last week: Friday, Monday, Tuesday. Today flows in Rp 1.3 trillion,” Purbaya said at the APBN KiTa press conference for the April 2026 edition in Jakarta, on Tuesday 19 May 2026. The situation is seen as helping to rekindle foreign investor interest in Indonesian financial assets. Purbaya said foreign funds began entering the secondary market around Rp 500 billion and the primary market around Rp 1.3 trillion. Thus, total foreign capital inflows are estimated at Rp 1.8 trillion. “In the midst of those tremors, foreign money is starting to come in here,” he said. He assessed that stabilising the bond market is one of the key factors in maintaining investor confidence in Indonesia’s economy, particularly amidst still-fluctuating global sentiment. Purbaya said he continues to monitor foreign fund movements into the bond market over time in conjunction with the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance. “I monitor from time to time. At 11am, Mr Suminto calls me to tell how much has come in. Then at 4pm I call again, and at 6pm I call again,” Purbaya said. He added that the government will continue to take concrete steps to restore domestic financial market confidence amid high external pressures. “We are taking real action to restore market confidence,” he concluded.