Indonesia’s net international investment position liability increased in the third quarter of 2021


N ° 23/335 / DKom

Indonesia’s international investment position (IPI) recorded higher net liabilities at the end of the quarter3/ 2021. Indonesia’s PEG at the end of Q3 / 2021 recorded a net liability of USD 275.9 billion (24.1% of GDP), compared to USD 264.7 billion (23.9% of GDP) at the end from Q2 / 2021. The increase stems from a larger increase in the position of foreign financial liabilities (FFL) than of foreign financial assets (FFA).
Indonesia’s higher position FFL was supported by improved performance of companies in line with strong exports and continued inflows of foreign capital into domestic financial markets. Indonesia’s FFL position climbed 4.1% (qtq) from $ 680.2 billion at the end of Q2 / 2021 to $ 707.8 billion at the end of Q3 / 2021. The rise in the FFL is mainly due to the positive revaluation factors of domestic financial instruments given the higher stock prices of several domestic companies, in line with the strong exports and the appreciation of the Rupiah against the US dollar. A further tilt in the FFL position was accentuated by an increase in foreign capital inflows in direct investment, portfolio investment and other investment, in line with the positive investor perception of the promising domestic economic outlook.
Indonesia’s position on the FFA Pink, Guided by the increase of all components of the FFA. The FFA position at the end of Q3 / 2021 increased by 4.0% (qtq) from $ 415.4 billion to $ 431.9 billion at the end of Q2 / 2021. All components experienced an increase in the AFF mainly in reserve assets and other in line investments with additional allocations of SDRs, an increase in deposit placements and private sector claims. Revaluation factors offset further gains in the FFA from the strong appreciation of the US dollar against major global currencies, as well as rising government bond yields in several asset investing countries.
Bank Indonesia estimates that Indonesia’s IIP at the end of T3 /2021 remained strong and supported external resilience. This condition is indicated by Indonesia’s IIP liability structure dominated by long-term instruments (93.6%). Going forward, Bank Indonesia believes that the performance of Indonesia’s IIP will be sustained in line with efforts to boost economic recovery from the Covid-19 pandemic, supported by the synergy of the Bank’s policy mix. Indonesia and government policies, as well as policies of other relevant authorities. . Nonetheless, the Bank of Indonesia will continue to observe the potential risk of net liabilities of the IIP to the economy.

Further information is presented in Indonesia’s Q3 / 2021 IIP report on the Bank of Indonesia website.

Djakarta, 21 years oldst december 2021
Head of communication department
Erwin Haryono

Executive Director


Bank of Indonesia published this content on 22 December 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 22 December 2021 03:42:01 UTC.


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