BI: Net International Investment Position Liability Rises by End of 2025
Bank Indonesia (BI) recorded Indonesia’s net international investment position (PII) liability increasing to US$272.6 billion in the fourth quarter of 2025. This position was higher compared to the net liability in the third quarter of 2025, which was recorded at US$261.8 billion.
“The increase in net liability was influenced by the rise in Foreign Financial Liabilities (KFLN) position, which grew more significantly than the increase in Foreign Financial Assets (AFLN) position,” said Bank Indonesia’s Executive Director of the Communications Department, Ramdan Denny Prakoso, in an official statement on Tuesday, 10 March 2026.
By the end of the fourth quarter of 2025, Indonesia’s KFLN position was recorded at US$831.1 billion. This figure rose from US$807.3 billion in the previous quarter. Prakoso stated that the KFLN increase was primarily sourced from inflows of foreign capital into portfolio investments, direct investments, and other investments. According to him, this demonstrates the maintenance of positive investor perception towards Indonesia’s economic prospects and investment climate. Additionally, the increase in KFLN position was also influenced by the appreciation of domestic stock price indices.
The AFLN position at the end of the fourth quarter of 2025 was recorded at US$558.5 billion. This position increased compared to the previous quarter, which was recorded at US$545.5 billion. Prakoso stated that the AFLN increase was primarily driven by the growth in foreign exchange reserves and direct investments. Furthermore, the increase was influenced by the appreciation in gold prices and global stock price indices.
Overall, the net international investment position liability in 2025 also increased compared to the previous year. Indonesia’s net PII liability increased from US$245.7 billion at the end of 2024 to US$272.6 billion at the end of 2025.
“Bank Indonesia views developments in Indonesia’s PII in the fourth quarter of 2025 and throughout 2025 as remaining well-managed, thereby supporting external resilience,” said Prakoso. He stated that Indonesia’s PII ratio to Gross Domestic Product in 2025 was 18.8 per cent.