Indonesia's Net International Investment Position Increases by US$26.9 Billion

Bank Indonesia (BI) recorded Indonesia’s net international investment position (IIP) liability at US$272.6 billion at the end of 2025, up from US$245.7 billion at the end of 2024, representing an increase of US$26.9 billion throughout 2025.

The Executive Director of Bank Indonesia’s Communications Department, Ramdan Denny Prakoso, stated that the increase in net IIP liabilities stemmed from a rise in Foreign Financial Liabilities (KFLN) that exceeded the rise in Foreign Financial Assets (AFLN). KFLN increased by US$61.9 billion or 8.0 per cent year-on-year, whilst AFLN increased by US$34.9 billion or 6.7 per cent year-on-year.

“The increase in KFLN position was primarily driven by inflows of foreign capital in the form of direct investment accompanied by a rise in domestic share prices,” Denny stated in an official statement on Tuesday, 10 March 2026. Meanwhile, the increase in AFLN was influenced by improvements across all components, including direct investment, portfolio investment, other investment, and foreign exchange reserves.

Denny noted that Indonesia’s IIP ratio to Gross Domestic Product (GDP) in 2025 remained stable at 18.8 per cent. He also stated that Indonesia’s IIP liability structure is dominated by long-term instruments at 93.2 per cent, particularly in the form of direct investment.

“Going forward, Bank Indonesia will continue to monitor global economic dynamics that may affect Indonesia’s IIP prospects and will continue to strengthen policy responses supported by close policy coordination with the government and relevant authorities in order to strengthen the resilience of the external sector,” Denny stated.

He also said Bank Indonesia will continue to monitor potential risks from developments in IIP net liabilities to Indonesia’s economy.