Indonesia's Net Investment Obligation Falls 1.2% in Q2 2021

Based on a report by Bank Indonesia (BI), Indonesia's net international investment liabilities amounted to US$264.1 billion in Q2 2021. This figure decreased by 1.2% from Q1 2021, which reached US$267.5 billion.

Indonesia's net investment liabilities at the end of June 2021 were equivalent to 23.8% of its Gross Domestic Product (GDP). This position decreased compared to the previous quarter, which reached 25.2% of GDP.

The decrease in Indonesia's net investment liabilities was due to an increase in foreign financial assets (FFA) that was greater than the increase in foreign financial liabilities (FFL). Indonesia's FFA was recorded at US$414.97 billion in April-June 2021, up 1.2% from US$410.2 billion in January-March 2021.

Meanwhile, the FFL position was US$679.1 billion in the second half of the year. This figure only increased by 0.2% from the first half of 2021, which was US$677.7 billion.

The largest increase in FFA came from other investment assets, which grew by 1.8% to US$152.7 billion in Q2 2021. Direct investment assets increased by 1.73% to US$101.4 billion.

Portfolio investment increased by 1.2% to US$23.5 billion. Financial derivative assets decreased by 6.8% to US$169 million. Meanwhile, the foreign exchange reserve position in Q2 2021 remained relatively stable compared to Q1 2021.

The largest increase in FFL came from direct investment liabilities, which grew by 1.4% to US$249.64 billion in the second half of 2021. Portfolio investment liabilities increased by 0.95% to US$261.36 billion.

Other investment liabilities decreased by 2.8% to US$167.9 billion in Q2 2021. Financial derivative liabilities decreased by 24.7% to US$197 million.