Indonesia’s foreign investment recorded an increase in net liabilities driven by an increase in foreign financial obligations, based on investment statistics released by Bank Indonesia (B.I.) today. Country’s foreign investment net liability reached US$330.3 billion or 31% of gross domestic product (GDP) in the second quarter (Q2) of 2019.
The central bank noted the value is higher than the foreign investment net liability at the end of the previous quarter of $329.2 billion or reached 31.3% of GDP. The increase in net liabilities is in line with the increase in the position of foreign financial obligations which is greater than the position of foreign financial assets.
Indonesia’s increasing foreign financial obligations are driven by the flow of foreign capital in the form of portfolio investments. This is supported by a favorable outlook for the domestic economy and the attractive return on investment in domestic financial assets.