Jakarta. Indonesia attracted about $9 billion in foreign portfolio inflows during the first half of the year, with higher interest rates helping restore investor confidence and draw overseas funds into government and central bank securities, Bank Indonesia said on Monday.

Senior Deputy Governor Destry Damayanti said the inflows were directed mainly into Bank Indonesia Rupiah Securities (SRBI) and government bonds (SBN), underscoring continued foreign interest in Indonesia's financial markets despite lingering global uncertainty.

“From January through June 26, foreign portfolio inflows into SBN and SRBI reached around $9 billion,” Destry said in Jakarta.

She noted that inflows accelerated over the past month after Bank Indonesia raised its benchmark interest rate by a cumulative 100 basis points, bringing the BI Rate to 5.75 percent.

The central bank has tightened monetary policy in recent weeks to stabilize the rupiah, contain financial market volatility, and maintain the attractiveness of Indonesian assets amid elevated global interest rates.

Destry also said Bank Indonesia had significantly expanded liquidity injections into the financial system to ensure adequate funding conditions as interest rates increased.

“At the end of May, our liquidity expansion stood at around Rp 600 trillion. By the end of June, it had increased to Rp 1,000 trillion,” she said.

The additional liquidity was intended to prevent excessive volatility in the money market and foreign exchange market while supporting the banking system's ability to continue extending credit to the economy.

Indonesia's central bank has sought to balance tighter monetary policy with ample domestic liquidity, aiming to support the rupiah without constraining economic activity.

The rebound in foreign portfolio inflows suggests investors have responded positively to the central bank's recent policy tightening, although officials continue to monitor global financial conditions, particularly the outlook for U.S. interest rates and capital flows to emerging markets.

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