Foreign Investors Sell Indonesian Government Bonds But Is The Money Actually Leaving Indonesia?
A remarkable transition occurred in Indonesia’s bond market, specifically referring to the ownership of Indonesian government bonds (Surat Berharga Negara, or SBN). Whereas one decade ago foreign investors held nearly 40 percent of this debt paper, this figure tumbled to 13-14 percent in the present.
In reports in Indonesian media, we read that “foreign portfolio investors are exiting Indonesia” (for instance, in an article titled ‘Foreign Ownership at Lowest Point’ (in Indonesian: Kepemilikan Asing di Titik Terendah) that was published in newspaper Bisnis Indonesia on 15 December 2025. This article directly links the decrease in the foreign SBN ownership ratio to capital outflows as well as foreign concern over the credibility of the Indonesian government’s (fiscal) policies.
In other newspapers, too, we have seen similar reports. And while those articles are partly correct, we do feel that it is missing some important context. Therefore, it is important to take a closer look at the matter. There are a couple of other factors that contributed to the slide in foreign ownership of SBNs. And, it certainly doesn’t mean that these foreign funds all exited Indonesia.
It is important to explain first which SBNs we refer to because readers might know that there are various (conventional and Sharia-compliant) SBNs, including Obligasi Negara Ritel (ORI), Sukuk Ritel (SR), Sukuk Tabungan (ST), and Savings Bond Ritel (SBR) that are legally restricted to Indonesian citizens only (and actually targeting the ordinary citizen as there is usually a IDR 1 million, or approx. USD $60, minimum investment requirement, which is a remarkably low threshold). And so, the foreign ownership share of these retail instruments is effectively zero percent.
The SBNs we refer to in this article are the Benchmark "Wholesale" Series. These are the large, tradable bonds that the government auctions to big banks and institutions (and are not available to the individual retail investors). These include the FR (Fixed Rate) series, which are the standard Indonesian government bonds that are bought by global funds such as BlackRock or foreign banks. On second and third position (at a distance) come the Islamic version (Sukuk) of the wholesale bonds, and short-term treasure bills (Surat Perbendaharaan Negara, SPN).
[...]
Want to read the full article? Yes? Then order our December 2025 report! This report (an electronic report, PDF, in English) can be ordered by contacting us through email and/or WhatsApp:
- info@indonesia-investments.com
- +62(0)882.9875.1125
Price of this report:
Rp 150,000 (or equivalent in other currencies)
Take a glance inside the report here!
Bahas
Silakan login atau berlangganan untuk mengomentari kolom ini