No.27/128/DKom
Indonesia's International Investment Position (IIP) in the first quarter of 2025 recorded a lower net liability. At the end of the first quarter of 2025, Indonesia's IIP amassed a net liability totalling 224.5 billion US dollars, retreating from 245.7 billion US dollars at the end of the fourth quarter of 2024. An increase in the position of Foreign Financial Assets (FFA) and a decrease in the position of Foreign Financial Liabilities (FFL) contributed to the lower net liability IIP in the reporting period.
Indonesia's higher FFA position was driven by increased resident investments in various financial instruments abroad. The FFA position at the end of the first quarter of 2025 was recorded at 533.1 billion US dollars, up 1.9% (qtq) from 523.1 billion US dollars at the end of the fourth quarter of 2024. Nearly all FFA components recorded larger asset placement transactions abroad, led by other investment assets, primarily in the form of loans and trade receivables. Furthermore, the higher FFA position was also supported by other change factors, given broad-based US dollar depreciation against most global currencies and the increasing international gold price trend.
Indonesia's FFL position decreased despite solid foreign capital inflows in the form of direct investment and portfolio investment. At the end of the first quarter of 2025, the FFL position stood at 757.6 billion US dollars, down 1.5% (qtq) from 768.8 billion US dollars at the end of the fourth quarter of 2024. Direct investment continued to record a surplus, reflecting maintained investor optimism in the promising domestic economic outlook. Portfolio investment also recorded net inflows, despite increasing global financial market uncertainty. In addition, the FFL position was affected by a lower value of domestic financial instruments, in line with the downward trend in Jakarta Composite Index (JCI).
Bank Indonesia views the recent developments in Indonesia's IIP in the first quarter of 2025 as solid, continuing to support external resilience. This was reflected in a lower IIP to GDP ratio of 16.0%, compared to 17.6% in the fourth quarter of 2024. In addition, long-term maturity instruments continued to dominate Indonesia's liability IIP structure, accounting for 91.9%, 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 its policy mix response in close synergy with the government and other relevant authorities to reinforce external sector resilience. Moreover, Bank Indonesia will continue to monitor the potential risks related to a net liability IIP that may pose to the domestic economy.
Further information is presented in Indonesia's IIP Report Q1/2025 on the Bank Indonesia website.
Jakarta, 11th June 2025
Communication Department
Ramdan Denny Prakoso
Executive Director
