Neto PII Indonesia's Liability Reaches US$ 227.6 Billion in Q1 2026

Illustration. (Photo: Dok. Antara)

JAKARTA - Bank Indonesia (BI) reported that Indonesia's International Investment Position (IIP) in the first quarter of 2026 recorded a decrease in net liabilities.

BI Communication Department Executive Director Ramdan Denny Prakoso said that at the end of the first quarter of 2026, Indonesia's PII recorded a net liability of 227.6 billion US dollars, down from the net liability at the end of the fourth quarter of 2025 of 273.4 billion US dollars.

"The decrease in net liabilities was influenced by a deeper decline in the position of Foreign Financial Liabilities (KFLN) than the decline in the position of Foreign Financial Assets (AFLN)," he said in a statement, Wednesday, June 10.

Denny said that the position of the Indonesian AFLN decreased, especially influenced by the decline in the position of foreign exchange reserves in line with the foreign exchange needs for government foreign debt payments as well as the rupiah exchange rate stabilization policy as a response from Bank Indonesia to the high uncertainty of the global financial market.

The position of AFLN at the end of the first quarter of 2026 was recorded at US$556.7 billion, down 0.4 percent (qtq) from US$559.1 billion at the end of the fourth quarter of 2025.

According to Denny, the decline in the position of AFLN was also influenced by the weakening of asset prices and the strengthening of the US dollar exchange rate against several currencies of the placement of assets, amid the increasing position of direct investment assets, portfolio investment, and other investments.

Denny said that KFLN Indonesia's position declined amid the inflow of foreign capital in direct investment and portfolio investment which remained maintained.

The position of KFLN Indonesia at the end of the first quarter of 2026 was recorded at US$ 784.3 billion, down 5.8 percent (qtq) from US$ 832.6 billion at the end of the fourth quarter of 2025.

According to Denny, the decline was mainly due to the weakening of the value of domestic financial instruments amid direct investment performance which still recorded a surplus reflecting the continued maintenance of investor confidence in the domestic economic outlook.

"The position of portfolio and other investment investments decreased in line with the payment of private sector debt securities and foreign loans that are due," he said.

In addition, he added, the position of KFLN is also influenced by the weakening of share prices and the strengthening of the US dollar exchange rate against the majority of global currencies, including the rupiah.

Denny said Bank Indonesia considered the development of Indonesian PII in the first quarter of 2026 to be maintained, thus supporting external resilience.

This is reflected in the ratio of Indonesia's PII to GDP in the first quarter of 2026 at 15.5 percent, lower than 18.9 percent in the fourth quarter of 2025.

In addition, Denny said that the structure of Indonesian PII liabilities is also dominated by long-term instruments (92.5 percent) especially in the form of direct investment.

In the future, Denny said Bank Indonesia will always pay attention to the dynamics of the global economy which can affect the prospects of Indonesian PII and continue to strengthen the response of the policy mix supported by close policy synergy with the Government and related authorities to strengthen the resilience of the external sector.

"Bank Indonesia will continue to monitor potential risks related to net PII liabilities to the economy," he concluded.