Bank Indonesia: Indonesia's Net International Investment Position Rises to USD 272.6 Billion
Bank Indonesia reported that Indonesia’s International Investment Position (IIP) recorded an increase in net liabilities to USD 272.6 billion throughout 2025 compared with the position at the end of 2024 of USD 245.7 billion.
“The increase in net IIP liabilities stemmed from an increase in Foreign Financial Liabilities (KFLN) of USD 61.9 billion (8.0 per cent, year-on-year) which was higher compared with the increase in Foreign Financial Assets (AFLN) of USD 34.9 billion (6.7 per cent, year-on-year),” said Ramdan Denny Prakoso, Executive Director of Bank Indonesia’s Communications Department, in a statement in Jakarta on Tuesday.
The increase in Foreign Financial Liabilities (KFLN) was primarily driven by inflows of foreign capital in the form of direct investment accompanied by rises in domestic share prices.
Meanwhile, the increase in Foreign Financial Assets (AFLN) was influenced by improvements across all components, including direct investment, portfolio investment, other investment, and foreign exchange reserves.
Indonesia’s KFLN position at the end of the fourth quarter of 2025 was recorded at USD 831.1 billion, increasing from USD 807.3 billion at the end of the third quarter of 2025.
The increase in KFLN position primarily came from foreign capital inflows into portfolio investment, direct investment, and other investment, which reflects the maintenance of positive investor sentiment towards Indonesia’s economic prospects and investment climate.
Meanwhile, Indonesia’s AFLN position at the end of the fourth quarter of 2025 was recorded at USD 558.5 billion, up from USD 545.5 billion at the end of the third quarter of 2025.
Most AFLN components recorded position increases. In addition to foreign exchange reserves, AFLN growth was also driven by direct investment and portfolio investment.
Bank Indonesia noted that the increase in AFLN position was also influenced by rising gold prices and global stock price indices.
This was reflected in Indonesia’s IIP ratio to GDP in 2025, which remained stable at 18.8 per cent, and the structure of Indonesia’s IIP liabilities, which is dominated by long-term instruments (93.2 per cent), particularly in the form of direct investment.
The central bank stated that going forward, it would continue to monitor global economic dynamics that could affect Indonesia’s IIP prospects. Bank Indonesia will also continue to strengthen its policy mix response supported by policy synergies with the Government and relevant authorities in order to strengthen the resilience of the external sector.