Indonesia's International Investment Position (IIP) in the first quarter of 2026 recorded a lower net liability. At the end of the first quarter of 2026, Indonesia's net liability IIP stood at USD227.6 billion, down from USD273.4 billion at the end of the fourth quarter of 2025. The lower net liability position was influenced by a larger decrease in Foreign Financial Liabilities (FFL) than in Foreign Financial Assets (FFA).

Indonesia's FFA position declined primarily driven by a lower reserve asset position in line with foreign exchange requirements for the government's external debt repayments and Bank Indonesia's Rupiah stabilization policy in response to persistently high uncertainty in the global financial markets. Indonesia's FFA position at the end of the first quarter of 2026 was recorded at USD556.7 billion, down 0.4% (qtq) from USD559.1 billion at the end of the fourth quarter of 2025. The decrease in the FFA position was also affected by lower asset prices and US dollar appreciation against several currencies in asset placement countries, amid increases in direct investment, portfolio investment, and other investment assets.

Indonesia's FFL position declined amid sustained foreign capital inflows in the form of direct investment and portfolio investment. At the end of the first quarter of 2026, Indonesia's FFL position stood at USD784.3 billion, down 5.8% (qtq) from USD832.6 billion at the end of the fourth quarter of 2025. The decline primarily stemmed from weaker valuations of domestic financial instruments. Nevertheless, direct investment continued to record a surplus, reflecting investor confidence in Indonesia's favorable domestic economic outlook. Portfolio investment and other investment positions retreated in the first quarter of 2026, attributable to repayments of private sector debt securities and maturing foreign loans. In addition, the FFL position was also affected by lower equity prices and broad-based US dollar appreciation against most major global currencies, including the Rupiah.

Bank Indonesia views the developments in Indonesia's IIP in the first quarter of 2026 as solid, thereby supporting external resilience. This was reflected in the ratio of Indonesia's IIP to GDP, which decreased to 15.5% in the first quarter of 2026 from 18.9% in the fourth quarter of 2025. Furthermore, Indonesia's IIP liability structure was still dominated by long-term instruments (accounting for 92.5%), primarily in the form of direct investment. Moving forward, Bank Indonesia will remain vigilant of global economic dynamics that could impact the IIP outlook, while strengthening the policy mix response, supported by close policy synergy with the Government and other relevant authorities to reinforce external sector resilience. In addition, Bank Indonesia will continue monitoring the potential risks posed by a net liability IIP on the national economy.

Further information is available in Indonesia's IIP Report Q1/2026​ on the Bank Indonesia website.