As global investors search for attractive returns, Bank Indonesia is working to ensure that Indonesia remains firmly on their radar. The central bank is strengthening the appeal of rupiah-denominated financial instruments in an effort to bring foreign capital back into the country’s financial markets.
One instrument attracting particular attention is Bank Indonesia Rupiah Securities, better known as SRBI. In recent months, SRBI has become one of the central bank’s key tools for managing liquidity while simultaneously encouraging foreign capital inflows.
Recent auction results suggest that the strategy may be gaining traction. Higher returns offered by both SRBI and government bonds have started to draw renewed interest from global investors.
According to Ramdan Denny Prakoso, Head of Bank Indonesia’s Communications Department, the market has responded positively to a combination of factors, including the increase in the BI Rate to 5.50 percent and the strengthening yields available in both SRBI and government securities.
“This is reflected in the increase in foreign capital inflows into SRBI following the SRBI auction on June 10, 2026. Foreign capital has also started returning to the government bond market, particularly in short- and medium-term maturities,” Ramdan said on June 12, 2026.
The latest SRBI auction, held on June 10, 2026, showed a notable increase in returns across all maturities. The average awarded yield for six-month SRBI reached 7.20 percent. The nine-month tenor recorded 7.35 percent, while the 12-month tenor climbed to 7.57 percent.
The rise becomes even more apparent when compared with the previous auction conducted just five days earlier, on June 5, 2026. At that time, average awarded yields stood at 6.90 percent for six-month SRBI, 7.04 percent for nine-month SRBI, and 7.25 percent for the 12-month tenor.
In other words, SRBI yields increased by roughly 30 to 32 basis points across all maturities within less than a week.
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Higher yields naturally make the instrument more attractive to investors. For foreign investors in particular, stronger returns create greater incentives to place funds in rupiah-based assets and participate in Indonesia’s financial market.
The trend is not limited to SRBI. Government bond yields have also moved significantly higher.
On June 10, 2026, the yield on Indonesia’s 10-year government bond reached 7.479 percent. Meanwhile, the 30-year government bond yield stood at 7.451 percent.
Both figures marked a substantial increase compared with levels recorded at the end of May 2026. At that point, the 10-year government bond yield was still at 6.695 percent, while the 30-year bond yielded 6.956 percent.
The changes translate into an increase of approximately 78.4 basis points for the 10-year tenor and around 49.5 basis points for the 30-year tenor.
As yields rise, government debt securities become more appealing to global investors seeking higher returns. This can help attract additional foreign capital and support demand for rupiah-denominated assets.
However, the situation is not entirely without trade-offs.
Higher yields can provide a positive boost by encouraging capital inflows and helping support rupiah stability. At the same time, rising government bond yields may increase future borrowing costs for the government, potentially raising the burden of debt financing.
Bank Indonesia therefore continues to monitor developments in both global and domestic financial markets closely. The central bank has reiterated its commitment to maintaining the competitiveness and attractiveness of Indonesia’s financial instruments as part of its broader effort to sustain foreign capital inflows.
Alongside yield management, Bank Indonesia is also continuing its rupiah stabilization measures. These efforts include interventions through Non-Deliverable Forward (NDF) transactions in offshore markets, as well as spot market operations and Domestic Non-Deliverable Forward (DNDF) transactions within the domestic market.
The central bank said these measures will continue to be implemented consistently and in a measured manner as it seeks to balance financial market stability, capital inflows, and currency resilience amid evolving global economic conditions.
