Bank of Indonesia has published Indonesia's first quarter 2026 international investment position, showing the country's net liability narrowed to USD227.6 billion from USD273.4 billion at the end of the fourth quarter of 2025. The improvement reflected a larger fall in foreign financial liabilities than in foreign financial assets. Foreign financial assets edged down 0.4 percent quarter on quarter to USD556.7 billion from USD559.1 billion, mainly because reserve assets fell in line with foreign exchange needs for government external debt repayments and Bank Indonesia's rupiah stabilisation operations. Lower asset prices and US dollar appreciation against several currencies in destination markets also weighed on the asset position. Foreign financial liabilities fell 5.8 percent quarter on quarter to USD784.3 billion from USD832.6 billion, driven chiefly by weaker valuations of domestic financial instruments. Direct investment still recorded a surplus, while portfolio investment and other investment declined due to repayments of private sector debt securities and maturing foreign loans. Bank Indonesia said the IIP to GDP ratio fell to 15.5 percent from 18.9 percent, and that 92.5 percent of liabilities remained in long-term instruments, mainly direct investment. Looking ahead, Bank Indonesia said it will stay alert to global economic developments that could affect the IIP outlook, strengthen its policy mix in coordination with the government and other authorities, and continue monitoring risks arising from Indonesia's net liability position.
Bank of Indonesia2026-06-10
Bank of Indonesia reports first quarter 2026 net international investment liability down to USD227.6 billion
Bank of Indonesia reported that Indonesia’s net international investment position liability narrowed to USD227.6 billion in the first quarter of 2026 from USD273.4 billion at end-2025, as foreign financial liabilities fell more sharply than assets. The international investment position to gross domestic product ratio declined to 15.5 percent, with 92.5 percent of liabilities in long-term instruments, and the central bank said it will monitor risks and adjust its policy mix with the government and other authorities.