Jakarta. Indonesia recorded Rp 140.7 trillion ($7.9 billion) in accumulated foreign capital inflows as of Sept. 14, Finance Minister Suahasil Nazara said Wednesday, signaling an improvement after periods of capital outflows earlier this year.

Suahasil said foreign funds had recently begun returning to Indonesian financial assets amid continued turbulence in the global economy.

“A few months ago, we were still seeing capital outflows, but more recently we have begun to see funds coming in,” Suahasil told the ANTARA Business Forum in Jakarta.

The inflows have primarily gone into government securities (SBN) and Bank Indonesia Rupiah Securities (SRBI), he said.

“As of Sept. 14, last week, accumulated capital inflows reached Rp 140.7 trillion through SBN and SRBI,” Suahasil said.

He said the trend indicated improving global investor perceptions of Indonesia despite continued uncertainty in the world economy.

“This is the kind of macroeconomic management that we must maintain,” he said.

The Finance Ministry has also pointed to Indonesia's government bond market as remaining resilient amid global uncertainty, with the yield spread between Indonesian government securities and US Treasuries relatively low compared with several other countries.

Three Fiscal Priorities
Suahasil also outlined three fiscal strategies aimed at strengthening the state budget.

The first is to optimize state revenue collection and increase Indonesia's tax ratio by improving taxpayer compliance, broadening the tax base and ensuring the effective implementation of the government's Coretax administration system.

The government also plans to continue adapting the tax system to developments in the global and digital economies while maximizing revenue from other sources.

The second priority is improving the quality of government spending.

Suahasil said the state budget must become more efficient and better targeted, while coordination between the central and regional governments should be strengthened through greater policy alignment.

His third priority is developing more innovative financing instruments.

With the state budget designed to remain expansionary, Suahasil said the government must also broaden its financing approaches while preserving fiscal health.

“We are developing various forms of more innovative financing so they can play a role in maintaining the health of the state budget,” he said.

Suahasil, who was appointed finance minister on Sept. 14, has said his leadership will represent continuity rather than a major change in the ministry's fiscal policy direction.

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