Indonesia recorded a $660 million net foreign portfolio inflow in the fourth quarter through Oct. 19, Bank Indonesia said, even as equity outflows persisted and the rupiah weakened.
Foreign portfolio investment had posted a net $80 million outflow in Q3 2026. BI linked most of that decline to equity outflows amid high uncertainty in global financial markets. The Q4 2026 figure covers the period through Oct. 19.
BI said equity selling pressure continued into October, while foreign funds entered Bank Indonesia Rupiah Securities (SRBI) and government securities (SBN). Portfolio investment was net positive overall through Oct. 19.
The central bank put the rupiah at Rp17,985 per U.S. dollar on Oct. 20, 0.61% weaker than at September’s end. BI attributed the decline to Middle East tensions, tighter U.S. monetary policy and foreign investor sentiment toward equities. The Jakarta Interbank Spot Dollar Rate (JISDOR) was Rp18,128 per dollar on Oct. 29.
At its Oct. 20-21 meeting, BI held the BI-Rate at 5.75% and raised the Deposit Facility rate to 5.00%. The decision was part of BI’s recent rate move and rupiah support measures. BI said currency operations included offshore non-deliverable forwards and domestic spot and domestic non-deliverable forward (DNDF) transactions. It also strengthened incentives for domestic DNDF hedging to support rupiah stability and attract foreign capital.
In an Oct. 15 notice, MSCI proposed moving its Indonesia indexes from the emerging-market category to standalone status. MSCI said market participants raised concerns about ownership transparency and suspected coordinated trading. The index provider said it would announce a decision by June 30, 2027.
Indonesia’s foreign-exchange reserves stood at $146.3 billion at the end of September, equal to 5.3 months of imports, BI said. September consumer-price inflation was 3.28% year over year, up from 3.19% in August. BI’s calendar lists the October inflation report for Nov. 2.
