Bank Indonesia: Indonesia's International Investment Position Rises in Q4 2025
Bank Indonesia (BI) reported that Indonesia’s net international investment position (PII) increased at the end of Q4 2025, with net liabilities amounting to US$272.6 billion. This figure rose compared with net liabilities of US$261.8 billion at the end of Q3 2025.
The international debt and loan obligations were equivalent to Rp4,544.2 trillion (using the JISDOR exchange rate of Rp16,670 per US dollar as of 31 December 2025).
“The increase in net liabilities was influenced by the rise in Foreign Financial Liabilities (KFLN) position, which was higher than the increase in Foreign Financial Assets (AFLN) position,” said Ramdan Denny Prakoso, Executive Director of Bank Indonesia’s Communication Department, in a statement on Tuesday (10 March 2026).
Prakoso detailed that Indonesia’s AFLN position rose due to increased foreign exchange reserves and direct investment. The AFLN position at the end of Q4 2025 was recorded at US$558.5 billion, up from US$545.5 billion in the previous period.
Meanwhile, Indonesia’s KFLN position also increased, particularly influenced by the rise in portfolio investment position amid continued high uncertainty in global financial markets. The KFLN position at the end of Q4 2025 was recorded at US$831.1 billion, up from US$807.3 billion at the end of Q3 2025.
Prakoso acknowledged that the increase in KFLN was supported by inflows of foreign capital into portfolio investment, direct investment, and other investment forms that reflect the maintenance of positive investor perception regarding Indonesia’s economic prospects and investment climate. The increase in KFLN position, he continued, was also influenced by the strengthening of the domestic stock price index.
“Bank Indonesia views Indonesia’s PII developments in the fourth quarter of 2025 and throughout 2025 as well-maintained, thus supporting external resilience,” he explained.
The reason is that Indonesia’s PII ratio in the third quarter of 2025 remained solid at 18.8% of GDP. Furthermore, Prakoso stated that the structure of Indonesia’s PII liabilities is also dominated by long-term instruments (93.2%), primarily in the form of direct investment.
Additionally, he stated that BI continuously monitors the dynamics of the global economy that could affect Indonesia’s PII prospects and continues to strengthen policy response through close policy coordination with the government and relevant authorities to strengthen the resilience of the external sector.
“Furthermore, Bank Indonesia will also continue to monitor potential risks related to the development of net PII liabilities to the Indonesian economy,” Prakoso concluded.