JAKARTA – Indonesia’s international investment position (IIP) in the second quarter (Q2) of 2024 reported net liabilities of USD 247.3 billion, down from USD 253.9 billion in Q1 2024.
In the press release quoted Wednesday (4/9), Erwin Haryono, Assistant Governor, Department of Communication of Bank Indonesia, said that the decrease in net liabilities of IIP resulted from higher foreign financial assets (FFA) and lower foreign financial liabilities (FFL).
FFA in Q2 2024 was reported at USD 491.48 billion, up from USD 485.66 billion in Q1 2024. FFA in Q2 2024 comprised direct investment of USD 124.60 billion, portfolio investment of USD 36.77 billion, financial derivatives of USD 462 million, other investment of USD 190.16 billion, and forex reserves of USD 140.17 billion.
Meanwhile, FFL was at USD 738.74 billion in Q2 2024, down from USD 739.56 billion in Q1 2024. FFL in this period consisted of direct investment of USD 301.60 billion, portfolio investment of USD 265.12 billion, financial derivatives of USD 487 million, and other investment of USD 171.51 billion.
Bank Indonesia saw that IIP in Q2 2024 remained relatively stable in order to support external resilience. The ratio of IIP towards GDP was approximately 18.1% in Q2 2024, decreasing from 18.4% in Q1 2024. “IIP liabilities’ structure was dominated by long-term instrument (92.8%), through direct investment,” Haryono concluded. (LK/ZH)