JAKARTA – International Investment Position (IIP) of Indonesia in Q4 2022 recorded net liability of USD 252.2 billion or equal to approximately 19.1% of Gross Domestic Product (GDP).

Erwin Haryono, Executive Director of Communication Department of Bank Indonesia (BI), confirmed that the net liability decreased from Q3 2022 of USD 262.6 billion. “The decrease of the net liability of IIP resulted from the foreign financial assets (FFA) that were reportedly higher than the foreign financial liabilities (FFL),” he explained in the press release in Jakarta on Monday (20/3).

The FFA was reported arriving at USD 449.8 billion, climbing 3.2% from USD 435.8 billion in Q3 2022. It was gathered from all components, including foreign exchange (forex) assets, direct investments, and other investments.

The FFL also increased, albeit in a slower rate of 0.5% from USD 698.4 billion to USD 702.1 billion. The FFL rise came from inflows of direct investment, aligning well with optimism towards the economy and domestic investment climate.

Throughout 2022, Indonesia’s net liabilities of IIP were recorded at USD 252.2 billion, declining from USD 277.4 billion in 2021. The net liabilities of IIP shrank due to the increased FFA to USD 18.8 billion and decreased FFL to USD 6.4 billion. (LK/ZH)