Indonesia's Net International Investment Position Liabilities Rise to US$272.6 Billion in Q4 2025
Jakarta – Bank Indonesia reported that Indonesia’s International Investment Position (IIP) in the fourth quarter of 2025 recorded an increase in net liabilities.
Ramdan Denny Prakoso, Executive Director of Bank Indonesia’s Communications Department, stated that at the end of Q4 2025, net liabilities were recorded at US$272.6 billion, higher than net liabilities at the end of Q3 2025 of US$261.8 billion.
“The increase in net liabilities was influenced by a rise in Foreign Financial Liabilities (FFL) that was higher than the increase in Foreign Financial Assets (FFA),” Prakoso said in his statement on Tuesday (10 March 2026).
Most components of FFA recorded position increases. In addition to foreign exchange reserves, the FFA increase was also driven by direct investment and portfolio investment.
The increase in FFA position was also influenced by rising gold prices and global stock price indices.
Indonesia’s FFL position increased mainly due to an increase in portfolio investment positions amid persistent high global financial market uncertainty.
Prakoso noted that Indonesia’s FFL 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.
Overall for 2025, Indonesia’s IIP also recorded an increase in net liabilities compared with the year-end 2024 position. Indonesia’s IIP net liabilities increased from US$245.7 billion at the end of 2024 to US$272.6 billion at the end of 2025.
The increase in IIP net liabilities stemmed from an increase in FFL position of US$61.9 billion (8.0% year-on-year) which was higher than the increase in FFA position of US$34.9 billion (6.7% year-on-year).
“The increase in FFL position was mainly influenced by inflows of foreign capital in the form of direct investment accompanied by an increase in domestic share prices,” he added.
Bank Indonesia assessed that Indonesia’s IIP developments in Q4 2025 and throughout 2025 remained sustainable, thus supporting external resilience.
This is reflected in Indonesia’s IIP-to-GDP ratio in 2025 which remained stable at 18.8% and the structure of Indonesia’s IIP liabilities which is dominated by long-term instruments at 93.2%, particularly in the form of direct investment.
Going forward, Bank Indonesia will continue to monitor global economic dynamics that could affect Indonesia’s IIP prospects and continue to strengthen the policy mix response supported by close policy synergy with the Government and relevant authorities to strengthen external sector resilience.
“Additionally, Bank Indonesia will continue to monitor potential risks related to the development of IIP net liabilities to Indonesia’s economy,” Prakoso concluded.