Indonesia sees $12.5 billion foreign capital inflow as central bank holds rates steady

Foreign investors poured Rp195 trillion into Indonesian assets following the Bank Indonesia's decision to maintain its benchmark rate, signaling confidence in the currency's stability despite external headwinds.

By Handelsavisen Newsroom · Automated 2026-07-31 02:51 UTC · 1 min read

Foreign capital flows into Indonesia surged to Rp195 trillion ($12.5 billion) in the latest reporting period, a significant boost for the emerging market amid ongoing global volatility.

The influx comes shortly after Bank Indonesia (BI) Governor Destry Damayanti confirmed the central bank's decision to hold its benchmark interest rate unchanged, a move aimed at preserving macroeconomic stability and supporting the rupiah.

The substantial inflow suggests that international investors are responding positively to the central bank's steady monetary stance.

By keeping rates stable, BI has provided a predictable environment for foreign portfolio investment, helping to offset pressures from external market turbulence.

The governor highlighted that the current policy framework is effectively balancing inflation control with growth support, thereby reinforcing investor confidence in the country's financial assets.

This development marks a notable shift in sentiment for Indonesian markets, which have faced scrutiny over currency fluctuations and external debt risks in recent quarters.