Bank of Indonesia published fourth quarter 2024 international investment position data showing Indonesia’s net liability position declined to USD 245.3 billion at end-Q4 2024 from USD 270.4 billion at end-Q3 2024, driven by higher foreign financial assets and lower foreign financial liabilities. Foreign financial assets rose to USD 522.8 billion, up 0.6% quarter on quarter from USD 519.7 billion, mainly reflecting an increase in reserve assets alongside higher direct and portfolio investment assets, partly offset by valuation and other changes linked to broad-based US dollar appreciation and weaker global stock indices. Foreign financial liabilities fell 2.8% quarter on quarter to USD 768.1 billion from USD 790.0 billion, with portfolio investment recording net outflows amid elevated global market uncertainty, while direct investment and other investment continued to post net inflows; liabilities were also affected by lower values of domestic financial instruments amid US dollar appreciation, including against the rupiah, and lower domestic share prices. For full-year 2024, the net liability IIP decreased to USD 245.3 billion from USD 257.9 billion at end-2023 as a USD 37.5 billion (7.7% year on year) increase in foreign financial assets exceeded a USD 24.9 billion (3.4% year on year) increase in foreign financial liabilities. Bank Indonesia also reported the net liability IIP-to-GDP ratio improved to 17.6% in 2024 from 18.8% in 2023, with long-term maturity instruments accounting for 92.3% of the liability structure, primarily via direct investment.

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