Bank of Indonesia published Indonesia’s international investment position (IIP) for the second quarter of 2025, showing a higher net liability position. Net liabilities rose to USD 244.3bn at end-Q2 2025 from USD 226.3bn at end-Q1 2025, as foreign financial liabilities increased more than foreign financial assets. Foreign financial assets (FFA) reached USD 536.8bn, up 0.7% quarter on quarter from USD 533.3bn, reflecting higher resident investment in financial instruments abroad, led by direct investment and other investment, alongside rising asset prices and US dollar depreciation against currencies in asset-placement countries. Foreign financial liabilities (FFL) increased to USD 781.1bn, up 2.8% quarter on quarter from USD 759.6bn, driven by foreign inflows to direct investment and other investment, with other investment influenced by private-sector foreign loan drawdowns; liabilities were also affected by broad-based US dollar depreciation against major currencies including the rupiah and higher domestic equity prices. Bank Indonesia reported the IIP-to-GDP ratio was maintained at 17.2% in Q2 2025, and that long-term maturity instruments accounted for 92.2% of the liability structure, primarily through direct investment. It also indicated it will monitor global economic dynamics and potential domestic risks associated with a net liability IIP.
Bank of Indonesia 2025-09-09
Bank of Indonesia reports Indonesia’s net liability international investment position widened to USD 244.3bn in Q2 2025
Bank of Indonesia's Q2 2025 international investment position (IIP) showed net liabilities rising to USD 244.3 billion from USD 226.3 billion in Q1, as foreign financial liabilities grew faster than assets. Assets increased by 0.7% to USD 536.8 billion, while liabilities rose by 2.8% to USD 781.1 billion, driven by foreign inflows and US dollar depreciation. The IIP-to-GDP ratio stayed at 17.2%, with long-term instruments comprising 92.2% of liabilities. Bank Indonesia will continue monitoring global and domestic risks.