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Communication Department​​

9/24/2021 12:00 AM
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 Net Liabilities of Indonesia’s International Investment Position Decreased in the Second Quarter of 2021

Press Releases

No. 23/244/DKom

Indonesia's International Investment Position (IIP) recorded a lower net liability at the end of the second quarter of 2021. At the end of the reporting period, Indonesia's IIP recorded a net liability totalling USD264.1 billion (23.8% of GDP), lower than the net liability of USD267.5 billion (25.2% of GDP) at the end of the first quarter of 2021. The decrease was stemmed from a larger increment of Foreign Financial Assets (FFA) than Foreign Financial Liabilities (FFL). 

Indonesia’s FFA position expanded partly due to rising transactions of direct investment and other investment assets. The FFA position at the end of the second quarter of 2021 grew 1.2% (qtq) to USD415.0 billion from USD410.2 billion at the end of the first quarter of 2021. In addition to transaction factors, the FFA gain was also prompted by a revaluation caused by broad US dollar depreciation against major global currencies, together with increasing stock indexes of most asset placement countries.

The higher in Indonesia’s FFL position was supported by foreign capital in the form of direct investment and portfolio investment. The FFL position climbed by 0,2% (qtq), from USD677,7 billion at the end of the first quarter of 2021 to USD679.1 billion at the end of the second quarter of 2021. The rising FFL was primarily attributable to an increase of foreign capital inflows in direct investment and portfolio investment in line with the positive perception of investors concerning the promising domestic economic outlook.  A further incline in the FFL position was offset by a negative revaluation of domestic financial instruments as the declined stock prices of several domestic companies.

Bank Indonesia views that Indonesia's IIP at the end of the second quarter of 2021 remained solid and supported external resilience. This condition is indicated by Indonesia's IIP liability structure dominated by long-term maturity instruments. Going forward, Bank Indonesia believes that Indonesia's IIP performance will be maintained in line with the effort to stimulate economic recovery from the Covid-19 pandemic, supported by the synergy of Bank Indonesia's policy mix and government policies, as well as policies of other relevant authorities. Nevertheless, Bank Indonesia will observe the potential risk of IIP net liabilities to the economy.


Further information is presented in the second quarter of 2021 Indonesia's IIP Report on the Bank Indonesia website.


Jakarta, 24th September 2021

Head of Communication Department

Erwin Haryono

Executive Director


Information about Bank Indonesia

Tel. 021-131, Email:


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Working hours: Monday to Friday, 08.00-16.00 West Indonesia Tim
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