The Indonesian Central Bank (BI) reported that Indonesia's international investment position net liabilities throughout 2024 decreased compared to previous years, driven by an increase in foreign financial assets (AFLN) which was higher than foreign financial liabilities (KFLN).

BI recorded net liabilities of US$245.3 billion, down compared to the end of 2023 of US$257.9 billion. Meanwhile, this decrease was caused by AFLN worth US$37.5 billion, higher than the increase in foreign financial liabilities (KFLN) of US$24.9 billion.

Ramdan Denny Prakoso, Chief Executive Director of the BI Communication Department, said that Indonesia's overall international investment position (PII) last year was maintained so that it could support external resilience.

"This is reflected in the improvement in the ratio of Indonesia's net PII liabilities to GDP from 18.8 percent in 2023 to 17.6 percent in 2024," Denny said on Monday, March 10, 2025.

He cited that the increase in the AFLN position was driven by all components, including direct investment, portfolio investment, other investments, and the foreign exchange reserve position.

Meanwhile, the increase in the KFLN position was mainly influenced by foreign capital inflows in the form of direct investment, portfolio investment and other investments.

BI reported that Indonesia's net PII liabilities in Q4 2024 fell from US$270.4 billion in the previous quarter to US$245.3 billion in Q3 2024. In addition, this decline was also influenced by an increase in the AFLN position. Likewise, the decline in the KFLN position.

BI reported that the AFLN position at the end of the fourth quarter of 2024 was recorded at US$522.8 billion, up 0.6 percent compared to the previous quarter of US$519.7 billion.

"The increase in the AFLN position was influenced by an increase in asset placement, especially in the form of foreign exchange reserves, followed by direct investment and portfolio investment," Denny said.

In addition, BI also reported that Indonesia's KFLN position at the end of Q4 2024 fell 2.8 percent to US$768.1 billion from US$790 billion in the previous quarter.

The decline in the KFLN position was influenced by portfolio investment transactions that recorded capital outflows as global financial market uncertainty remains high. Meanwhile, inflows of investment and other investments continued to record capital inflows.

"This reflects the maintained optimism of investors towards the economic prospects and domestic investment climate," he said.