Bank Indonesia Reports Rp1 Trillion Foreign Capital Inflow in Late October 2025

Foreign Capital Boosts Indonesian Market

Bank Indonesia (BI) announced a net inflow of Rp1 trillion in foreign capital into the domestic financial market during the fifth week of October 2025. This positive development, based on transaction data from October 27 to 30, 2025, signals renewed investor interest in Indonesia's economic landscape. Ramdan Denny Prakoso, Executive Director of BI's Communication Department, confirmed these figures, highlighting the dynamic nature of foreign investment in the country.

Detailed Breakdown of Inflows and Outflows

The Rp1 trillion net inflow was a result of varied activities across different market segments. Non-resident investors made a substantial net purchase of Rp4.4 trillion in the stock market. However, this was partially offset by net sales of Rp3.23 trillion in government bonds (SBN) and Rp0.17 trillion in Bank Indonesia Rupiah Securities (SRBI) during the same period.

Looking at the broader picture for the year, cumulative foreign activity until October 30, 2025, showed a net sale of Rp46.17 trillion in the stock market and Rp135.86 trillion in SRBI. These outflows were partially mitigated by net purchases of Rp3.89 trillion in government bonds.

Market Performance and Policy Context

In line with these capital movements, the five-year Indonesia credit default swap (CDS) premium stood at 73.07 basis points (bps) as of October 30, 2025, a decrease from 78.95 bps recorded on October 24, 2025. Meanwhile, the rupiah exchange rate opened at Rp16,620 per US dollar on October 31, 2025.

Bank Indonesia's Board of Governors decided to maintain the benchmark interest rate, or BI Rate, at 4.75 percent during its meeting on October 21 and 22, 2025. The Deposit Facility rate and Lending Facility rate also remained unchanged at 3.75 percent and 5.5 percent, respectively. This decision was made to assess the 'monetary policy transmission so far' and to support rupiah stability amidst global uncertainties.

Recent Investment Policy Changes

Further influencing the investment climate, Indonesia recently reduced the paid-up capital requirement for foreign-owned limited liability companies. Effective October 2, 2025, the minimum requirement was lowered from IDR 10 billion (approximately $640,000) to IDR 2.5 billion (approximately $160,000) through Minister of Investment Regulation No. 5 of 2025. This strategic move aims to ease investment barriers and attract more foreign participation, particularly from mid-sized and service-sector entrants.