No.28/63/DKom 
Indonesia's International Investment Position (IIP) in the fourth quarter of 2025 recorded a higher net liability. At the end of the fourth quarter of 2025, Indonesia's net liability IIP stood at USD272.6 billion, higher than the USD261.8 billion recorded at the end of the third quarter of 2025. The increase was influenced by a larger increase in Foreign Financial Liabilities (FFL) than the increase in Foreign Financial Assets (FFA).

Indonesia's FFA position was primarily driven by a higher reserve assets position and foreign direct investment. The FFA position at the end of the fourth quarter of 2025 was recorded at USD558.5 billion, up from USD545.5 billion at the end of the third quarter of 2025. Most of FFA components recorded higher positions. In addition to reserve assets, the increase was driven by direct investment and portfolio investment. Furthermore, the higher FFA position was also influenced by rising gold prices and global equity prices.

Indonesia's FFL position primarily increased due to a higher portfolio investment position amid persistently high global financial market uncertainty. The FFL position at the end of the fourth quarter of 2025 stood at USD831.1 billion, up from USD807.3 billion at the end of the third quarter of 2025. The increase was primarily driven by foreign capital inflows of portfolio investment, direct investment and other investment, thus reflecting positive investor perceptions of the domestic economic outlook and investment climate. In addition, the higher FFL position was also influenced by higher domestic equity prices.

Overall, Indonesia's net liability IIP increased in 2025 compared with the position recorded at year-end 2024. Indonesia's net liability IIP increased from USD245.7 billion at year-end 2024 to USD272.6 billion at the end of 2025. The increase recorded in Indonesia's net liability IIP stemmed from an increase of USD61.9 billion (8.0% yoy) in the FFL position, which exceeded the increase of USD34.9 billion (6.7% yoy) in the FFA position. The higher FFL position was mainly influenced by foreign capital inflows of direct investment, accompanied by an increase of domestic equity prices. On the other hand, the higher FFA position was driven by higher positions across all components, namely direct investment, portfolio investment, other investment and reserve assets.

Bank Indonesia views the developments in Indonesia's IIP in the fourth quarter of 2025 and overall in 2025 as solid, thereby supporting external resilience. This was reflected in the ratio of Indonesia's IIP to GDP, maintained at 18.8% in 2025, as well as the structure of Indonesia's IIP on the liability side, which was dominated by long-term maturity instruments (accounting for 93.2%), primarily in the form of direct investment. Going 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 synergy with the Government and other relevant authorities to bolster external sector resilience. Moreover, Bank Indonesia will also continue to monitor the potential risks posed by a net liability IIP on the domestic economy.

Further information is presented in Indonesia's IIP Report Q4/2025 on the Bank Indonesia website.

Jakarta, 10th March 2026
Communication Department
Ramdan Denny Prakoso