No. 27/294/DKom
Indonesia's International Investment Position (IIP) in the third quarter of 2025 recorded a higher net liability. At the end of the third quarter of 2025, Indonesia's net liability IIP stood at 262.9 billion US dollars, increasing from 244.5 billion US dollars at the end of the second quarter of 2025. A larger increase in the Foreign Financial Liabilities (FFL), which offset the rise in the Foreign Financial Assets (FFA) position, contributed to the higher net liability IIP in the reporting period.
Indonesia's FFA position was edged up, mainly due to higher market valuations in several asset placement countries. The FFA position at the end of the third quarter of 2025 was recorded at 541.1 billion US dollars, up 0.7% (qtq) from 537.3 billion US dollars at the end of the second quarter of 2025. The higher FFA position was influenced by rising gold prices, global equity prices, and asset prices in several placement countries.
Indonesia's FFL position was primarily driven by higher direct investment and portfolio investment. The FFL position at the end of the third quarter of 2025 was 803.9 billion US dollars, up 2.8% (qtq) from 781.8 billion US dollars at the end of the second quarter of 2025. The higher FFL position was supported by continued foreign capital inflows in the form of direct investment, reflecting positive investor sentiment concerning the domestic economic outlook and investment climate. Furthermore, the rising of domestic equity prices in Indonesia had an impact on the higher FFL position.
Bank Indonesia is of the view that the recent developments in Indonesia's IIP in the third quarter of 2025 remain solid, thus supporting external resilience. This was reflected by the ratio of Indonesia's IIP to GDP, maintained at 18.3% in the third quarter of 2025. In addition, long-term maturity instruments continued to dominate Indonesia's liability IIP structure, accounting for 93.1%, 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 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 for the domestic economy.
Further information is presented in Indonesia's IIP Report Q3/2025 on the Bank Indonesia website.
Jakarta 5th December 2025
Communication Department
Ramdan Denny Prakoso
Executive Director
