Finance Minister Purbaya Yudhi Sadewa said that foreign investor confidence in Indonesia has begun to recover, as reflected in renewed capital inflows into the domestic bond market.

He noted that the yield spread between Indonesian government bonds (SBN) and US Treasuries has narrowed from 240 basis points to 197 basis points. This tightening spread indicates that global investors now perceive investment risk in Indonesia to be lower.

“The narrowing yield spread between SBN and US Treasuries reflects growing investor confidence in Indonesia’s economic fundamentals. From 240 basis points at the beginning of 2025, it has now declined to 197 basis points,” Purbaya said during the APBN K press conference in Central Jakarta on Thursday (18/12/2025).

Beyond the bond market, the strengthening performance of the Jakarta Composite Index (IHSG) is also seen as evidence of investor optimism toward Indonesia’s economic outlook. Purbaya noted that the index has shown a recovery trend since the second half of 2025, after previously experiencing weakness.

He also pointed to data indicating that foreign investors began returning to the Indonesian market in December. After earlier experiencing capital outflows from government bonds, December recorded an inflow of Rp2.64 trillion.

“Previously, SBN experienced net outflows, but in December it recorded inflows of Rp2.64 trillion. SRBI also posted inflows of Rp21.17 trillion, while the equity market saw inflows of Rp3.49 trillion. This suggests an improvement in foreign investor confidence in Indonesia. After a period of continuous decline, flows reversed in December, signaling that confidence is starting to strengthen again,” Purbaya explained.