No.27/212/DKom

Indonesia's International Investment Position (IIP) in the second quarter of 2025 recorded a higher net liability. At the end of the second quarter of 2025, Indonesia's net liability IIP was 244.3 billion US dollars, increasing from 226.3 billion US dollars at the end of the first quarter of 2025. A larger increase in the position of Foreign Financial Liabilities (FFL) than in the position of Foreign Financial Assets (FFA) contributed to the higher net liability IIP.

Indonesia's higher FFA position was influenced by increasing investments by residents in various financial instruments abroad. The FFA position at the end of the second quarter of 2025 was recorded at 536.8 billion US dollars, up 0.7% (qtq) from 533.3 billion US dollars at the end of the first quarter of 2025. Most FFA components recorded larger asset positions, led by direct investment and other investment. The higher FFA position was also influenced by rising asset prices and US dollar depreciation against several currencies in asset placement countries.

Indonesia's higher FFL position is mainly caused by an influx of foreign capital inflows to direct investment and other investment. The FFL position at the end of the second quarter of 2025 was recorded at 781.1 billion US dollars, increasing by 2.8% (qtq) from 759.6 billion US dollars at the end of the first quarter of 2025. The higher FFL position was supported by the promising economic growth outlook for Indonesia. The larger other investment position was influenced by the withdrawal of foreign loans in the private sector. Furthermore, the higher FFL position was also influenced by broad-based US dollar depreciation against most global currencies, including the Rupiah, coupled with rising domestic equity prices in Indonesia.

Bank Indonesia is of the view that the recent developments in Indonesia's IIP in the second quarter of 2025 as remaining solid, thus supporting external resilience. This argument is reflected in the ratio of Indonesia's IIP to GDP, which is maintained at 17.2% in the second quarter of 2025. In addition, long-term maturity instruments continued to dominate Indonesia's liability IIP structure, accounting for 92.2%, primarily through 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 synergy with the Government and other relevant authorities to bolster external sector resilience. Moreover, Bank Indonesia will also monitor the potential risks posed by a net liability IIP on the domestic economy.

Further information is presented in Indonesia's IIP Report Q2/2025​ on the Bank Indonesia website.

Jakarta, 9 September 2025
Communication Department
Ramdan Denny Prakoso
Executive Director