Indonesia's Net Investment Obligation Rises to US$275.9 Billion in Q3 2021

Indonesia's net international investment liabilities increased to US$275.9 billion in the third quarter of 2021. According to Bank Indonesia (BI), this figure represents a US$11.2 billion or 4.2% increase from US$264.7 billion in the second quarter of 2021 (quarter-to-quarter/q-to-q).

Indonesia's net investment liabilities in the third quarter of 2021 amounted to 24.1% of its Gross Domestic Product (GDP). This is an increase compared to the previous quarter, which stood at 23.9% of GDP.

The increase in net investment liabilities was influenced by a rise in Foreign Financial Liabilities (FFL), supported by improved corporate performance in line with strong export performance. The FFL position increased by 4.1% (q-to-q) from US$680.2 billion to US$707.8 billion.

The increase in FFL stemmed from direct investment liabilities, which grew by 4.1% to US$260.4 billion in the third quarter of 2021. Meanwhile, portfolio investment liabilities increased by 4% to US$27.2 billion.

Other investment liabilities grew by 4% to US$175 billion in Q3 2021. Meanwhile, financial derivative liabilities decreased by 13.7% to US$170 million.

Meanwhile, the position of Foreign Financial Assets (FFA) in the July-September 2021 period was US$431.9 billion. This figure increased by 4% (q-to-q) from US$415.4 billion in the previous quarter.

The increase in FFA occurred across all components. Other investment assets grew by 3.6% to US$158.9 billion in Q3 2021. Direct investment assets increased by 0.76% to US$102.1 billion.

Portfolio investment experienced a 1.4% increase to US$24.2 billion. Financial derivative assets rose by 21.3% to US$205 million. Meanwhile, the foreign exchange reserve position in Q3 2021 increased by 7.1% to US$146.6 billion.