Jakarta. Indonesia recorded a net foreign capital outflow of $80 million (Rp 1.44 trillion) from its domestic financial markets in the third quarter of 2026, but foreign portfolio investment returned to positive territory in October, Bank Indonesia reported Wednesday.

Bank Indonesia Governor Destry Damayanti said foreign portfolio investment registered a net inflow of $660 million (Rp 11.88 trillion) from the beginning of October through Oct. 19, signaling renewed foreign investor interest despite persistent uncertainty in global financial markets.

The turnaround came after Indonesia experienced net capital withdrawals during the July-September period, reflecting the volatility of international investment flows amid shifting global economic conditions.

Destry said Bank Indonesia continued to closely monitor foreign capital movements as part of its efforts to safeguard external stability and maintain confidence in domestic financial markets.

Trade Surplus Supports External Resilience
Indonesia's external position has also been supported by a stronger merchandise trade balance.

The country recorded a trade surplus of $3.55 billion in August, up sharply from approximately $120 million in July, according to figures presented by the central bank.

The improvement in the trade balance provided additional support for Indonesia's external resilience, although fluctuations in foreign portfolio investment remained a potential source of pressure on domestic financial markets.

Meanwhile, Indonesia's foreign exchange reserves stood at $146.3 billion, equivalent to approximately five months of imports and government external debt payments.

"This position remains above the international adequacy standard, providing Indonesia with room to withstand external pressures," Destry said.

The reserve position provides an important buffer against global financial volatility, including sudden shifts in foreign capital flows and potential pressure on the rupiah.

Bank Indonesia expects Indonesia's current account deficit to range between 1.2% and 1.6% of gross domestic product in 2026.

The central bank continues to monitor developments in the current account, trade performance and foreign exchange reserves as key indicators of the country's ability to withstand external economic shocks.

Despite the uncertain global environment, Bank Indonesia projects economic growth of between 4.9% and 5.7% this year, supported primarily by household consumption and investment, Destry said.

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