Bank Indonesia Reveals Indonesia’s PII Net Liabilities of 252.6 Billion US Dollars in the Third Quarter of 2023

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) recorded net liabilities in International Investment Position (PII) in the third quarter of 2023 amounting to 252.6 billion US dollars.

This figure is lower than in the previous quarter which reached 253.8 billion US dollars.

Executive Director, Head of the BI Communications Department, Erwin Haryono, revealed that the decrease in net liabilities came from a decrease in the position of Foreign Financial Liabilities (KFLN) which was accompanied by an increase in the position of Foreign Financial Assets (AFLN).

Meanwhile, Indonesia's KFLN position at the end of the third quarter of 2023 fell 0.1 percent (qtq) to 716.8 billion US dollars from 717.6 billion US dollars at the end of the second quarter of 2023.

"Indonesia's KFLN position is declining, driven by the outflow of foreign capital in portfolio investments, in line with increasing global financial market uncertainty," said Erwin in his statement, Monday, December 18.

The decline in KFLN mainly came from a decline in the position of portfolio investment obligations in the form of Government Securities (SBN) and private debt securities.

Meanwhile, the position of direct investment obligations and other investments continues to show an increase in line with maintained optimism regarding the prospects for the domestic economy.

The development of KFLN's position was also influenced by the strengthening of the US dollar exchange rate against the majority of global currencies, including the Rupiah.

Erwin said that Indonesia's foreign financial assets (AFLN) position increased due to the placement of direct investments and other investments in several foreign financial instruments.

On the other hand, AFLN's position at the end of the third quarter of 2023 was 464.2 billion US dollars, up from 463.8 billion US dollars in the previous quarter.

This increase was mainly due to the increase in the position of direct investment assets, portfolio investments and other investments in the form of debt securities and loans.

Meanwhile, the position of foreign exchange reserve assets decreased, among other things, to pay government foreign debt and stabilize the Rupiah exchange rate in anticipation of the impact of global financial market uncertainty.

However, the increase in AFLN's position was hampered by other changing factors related to the strengthening of the US dollar exchange rate against several currencies of asset placement countries.