Bank Indonesia reported that Indonesia’s net liability international investment position declined to USD 197.4 billion at the end of the second quarter of 2026 from USD 223.0 billion in the first quarter. The improvement reflected both a decrease in foreign financial liabilities and an increase in foreign financial assets. Foreign financial liabilities fell 1.9% quarter on quarter to USD 769.0 billion, partly because of lower valuations for domestic financial instruments amid price revaluations and broad US dollar appreciation. Direct and portfolio investment continued to record net inflows. Foreign financial assets rose 1.9% to USD 571.5 billion, led by increases in other investment, direct investment and portfolio investment. The net liability position declined to 13.3% of gross domestic product from 15.2%, while liabilities remained concentrated in long-term instruments, primarily direct investment. Bank Indonesia will continue monitoring global economic developments and risks arising from the net liability position.

Original source