TEMPO.CO, Jakarta - Bank Indonesia (BI) records Indonesia's International Investment Position (IIP) declined to US$227.6 billion in Q1 2026. Compared to the end of Q4 2025, this position decreased by US$45.8 billion, which was recorded at US$273.4 billion.
Executive Director of the Communication Department at BI, Ramdan Denny Prakoso, stated that the decrease in net obligations was influenced by the decline in the Financial Liabilities to Non-Residents (FLNR) position, which was deeper than the decline in Foreign Financial Assets (FFA) position. The FFA position was recorded at US$556.7 billion at the end of Q1 2026, which is a 0.4 percent decrease from US$559.1 billion at the end of Q4 2025.
“Indonesia's FFA position decline was mainly affected by the decrease in foreign exchange reserves in line with the need for foreign exchange for government external debt payments and the rupiah exchange rate stabilization policy in response to the high uncertainty in the global financial market,” said Denny in a press release quoted on Thursday, June 11, 2026. The decline in the FFA position was influenced by weakening asset prices and a strengthening US dollar against several currencies of countries where assets are placed.
Meanwhile, Indonesia's FLNR position decreased by 5.8 percent from US$832.6 billion at the end of Q4 2025 to US$784.3 billion in Q1 2026. According to Denny, the decrease was mainly due to the weakening value of domestic financial instruments, despite the fact that direct investment performance still recorded a surplus.
Denny also stated that portfolio and other investments declined in line with the repayment of private-sector bonds and maturing foreign loans. Additionally, he mentioned that the FLNR position was also affected by the weakening stock prices and the strengthening of the US dollar against most global currencies, including the rupiah.
“Bank Indonesia views the development of Indonesia's IIP in Q1 2026 as being well-maintained, thus supporting external resilience,” said Denny. He stated that this condition was reflected in the IIP ratio to Gross Domestic Product in Q1 2026 at 15.5 percent, lower than in Q4 2025 at 18.9 percent. Additionally, Indonesia's IIP obligations structure is dominated by long-term derivative instruments at 92.5 percent, mainly in the form of direct investments.
Read: BI: Rupiah Strengthens Below Rp18,000 After Rate Hike
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