Purbaya Provides Evidence of Continued Foreign Investor Confidence in Indonesia: IDR 37.29 Quadrillion in Inflows

Finance Minister Purbaya Yudhi Sadewa claimed that Indonesia remains a favoured destination for foreign investors seeking to deploy capital. This was demonstrated by the flow of capital inflows in recent months.

The minister expressed this optimism directly before President Prabowo Subianto during a Full Cabinet Session at the State Palace in Jakarta on Friday, 13 March 2026.

“There have been ups and downs, but we have seen a positive trend since November-December. It remains positive now,” said Purbaya.

Whilst acknowledging capital outflows from government securities of USD 0.7 trillion in March 2026, Purbaya pointed to stronger inflows into Indonesian securities. The Bank Indonesia’s Indonesian Rupiah Securities (SRBI) recorded capital inflows of USD 2.2 trillion, equivalent to approximately IDR 37.29 quadrillion.

“Stocks also saw inflows of USD 2.2 trillion in March. So despite the volatility in March, capital is still flowing in. This demonstrates that they have genuine confidence in our fundamentals,” he stated.

Purbaya’s optimism was further supported by Indonesia’s relatively stable five-year Credit Default Swap (CDS) spread. Additionally, the yield spread of government securities relative to US Treasury bonds rose only marginally by 3 basis points, from 240 to 243 basis points.

“This shows that foreign investors still have confidence in us. It is only domestic investors who lack confidence,” Purbaya asserted firmly.

Dismissing Rupiah Concerns

Purbaya also rejected claims that the rupiah would further weaken due to Middle Eastern tensions involving the United States, Israel and Iran.

According to him, the rupiah exchange rate had not depreciated excessively. Drawing on experience from previous conflicts, Purbaya noted that rupiah depreciation typically remains around 0.3 per cent.

“When we examine global dynamics, there is certainly volatility that affects everything. Some claim the rupiah is in collapse. But looking closely, in each conflict, rupiah depreciation amounts to only around 0.3 per cent,” said Purbaya during the Full Cabinet Session before President Subianto.

Real Money Shows Confidence

Purbaya implicitly criticised those sceptical about the rupiah’s prospects, noting that major investors with substantial capital are not concerned about current currency movements.

“Our resilience is actually strong. Serious investors with real capital express confidence. Those without real capital are the ones expressing pessimism,” he stated.