Jakarta. Bank Indonesia said foreign capital has returned to the country's financial markets, reaching Rp 15.44 trillion ($921 million) as of Feb. 6, offering fresh support to the rupiah despite pessimistic outlooks from global rating agencies.

Senior Deputy Governor Destry Damayanti said on Tuesday that most of the inflows were channeled into government bonds and Bank Indonesia’s rupiah securities instruments, marking a sharp reversal from 2025, when Indonesia recorded net capital outflows of Rp 126.97 trillion ($7.6 billion).

“Year to date, the rupiah is still down. But over the past three days, it has started to strengthen and today is trading around Rp 16,700,” Destry said during a discussion at Hotel Indonesia Kempinski Jakarta.

She said the central bank has been actively intervening both onshore and offshore to keep rupiah volatility under control.

“When there was a sizeable outflow from government bonds a few days ago, Bank Indonesia stepped in to ensure yields remained stable — not too high and not too low,” Destry said.

She added that BI continues to preserve the appeal of rupiah-denominated assets by maintaining competitive returns amid intense global competition for capital. Beyond solid economic fundamentals, market sentiment has also been supported by concrete government initiatives, including downstream industrialization projects led by sovereign wealth fund Danantara.

Still, Destry cautioned that currency strengthening takes time and must move in step with industrial growth.

“As regulators, we want to grow together with industry and with the market,” she said.

Destry closed by urging industry players and banks to work closely with the central bank to safeguard exchange-rate stability as a foundation for sustainable economic growth, stressing that market volatility is normal amid global uncertainty.

“Turbulence is part of global dynamics. What matters is that we’re now seeing inflows returning to government bonds, BI securities, and equities,” she said.