Foreign Capital Inflows Surge Ahead of Indonesia’s 80th Independence Day

Jakarta: Bank Indonesia (BI) reported a surge of foreign capital inflows into the domestic financial market over the past week, ahead of Indonesia’s 80th Independence Day celebrations, including President Prabowo Subianto’s State of the Nation Address and the introduction of the 2026 Draft State Budget and Financial Note.

Based on transaction data from August 11–14, 2025, foreign investors booked a net buy of IDR 15.31 trillion across all domestic financial instruments.

The largest inflows were recorded in the government bond (SBN) market with IDR 7.88 trillion, followed by the stock market with IDR 5.37 trillion, and Bank Indonesia Rupiah Securities (SRBI) with IDR 2.05 trillion.

“Throughout 2025, based on settlement data as of August 14, foreign investors recorded a net sell of IDR 57.48 trillion in the stock market and IDR 94.52 trillion in SRBI, while booking a net buy of IDR 71.83 trillion in the SBN market,” said BI Executive Director of Communications Ramdan Denny Prakoso, citing the central bank’s Rupiah Stability Indicator Report on Saturday, August 16, 2025.

Indonesia’s five-year Credit Default Swap (CDS) premium also fell to 67.72 basis points (bps) as of August 14 from 73.78 bps on August 8, signaling improved investor confidence in government bonds.

Rupiah Weakens Despite Inflows

The rupiah, however, failed to strengthen against the US dollar despite the surge of foreign capital.

According to Bloomberg data, the rupiah closed at IDR 16,168.5 per USD on Friday, August 15, weakening by 53.5 points or 0.33% from the previous day’s close of IDR 16,115.

Yahoo Finance data similarly showed the rupiah in negative territory at IDR 16,155 per USD, down 51 points or 0.32% from the previous session. Meanwhile, Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) stood at IDR 16,162 per USD, slipping 53 points from IDR 16,109.

“Bank Indonesia continues to strengthen coordination with the government and relevant authorities while optimizing its policy mix strategies to support Indonesia’s external economic resilience,” Ramdan emphasized.

Also read: Foreign Investors Snap Up Indonesian Stocks, IDX Jumps Nearly 5%