Net Liabilities of Indonesia’s International Investment Position Increased - Bank Sentral Republik Indonesia
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October 26, 2020

Indonesia’s International Investment Position (IIP) recorded a larger net liability. At the end of the second quarter of 2020, Indonesia’s IIP registered a net liability totalling USD280.8 billion (25.7% of GDP), increasing from USD256.6 billion (22.8% of GDP) at the end of the previous quarter. The increase was stemmed from a larger increment of Foreign Financial Liabilities (FFL) than Foreign Financial Assets (FFA).

Indonesia’s higher FFL position was mainly triggered by an influx of foreign capital in portfolio investment and direct investment to the domestic financial market, in line with less uncertainty of global financial markets during the reporting period. Indonesia’s FFL position in the second quarter of 2020 climbed 6.3% (qtq) from USD620.7 billion to USD659.6 billion. The rising FFL was primarily attributable by an increase in foreign ownership position in government and private sector debt securities as well as larger equity capital transactions from affiliates. A positive revaluation of rupiah-denominated investment instruments in line with the Jakarta Composite Index (JCI) rally and the Rupiah appreciation against the US dollar also contributed to Indonesia’s higher FFL position. 

Indonesia’s FFA position expanded primarily driven by reserve assets. At the end of the second quarter of 2020, the FFA position grew 4.0% (qtq), from USD364.1 billion to USD378.8 billion. In addition to transaction factors, the FFA gain was also prompted by a positive revaluation caused by rising average stock indexes in most investment placement destination countries, together with a broad-based US dollar depreciation against major global currencies. 

Bank Indonesia views that Indonesia’s IIP at the end of Q2/2020 remained solid. This condition is indicated by Indonesia’s IIP liabilities structure dominated by long-term maturity instruments. Nevertheless, Bank Indonesia will remain vigilant on the risk of IIP net liabilities to the economy. Going forward, Bank Indonesia believes that Indonesia’s IIP performance will be maintained in line with the effort to stimulate economic recovery during the COVID-19 pandemic, supported by the synergy of Bank Indonesia’s policy mix and government policy, and other relevant authorities.

Further information is presented in Q2/2020 Indonesia’s IIP Report on the Bank Indonesia website.

Head of Communication Department
Onny Widjanarko
Executive Director 

Information on Bank Indonesia
Tel. 021-131, email:



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