Michelle Natalia
In addition, direct investment inflows also remained solid, reflecting investors optimism in the promising national economic outlook. The higher FFA position was also influenced by the US Dollar depreciation against the Rupiah, which raised the value of domestic financial instruments.
"Bank Indonesia views Indonesia's IIP in the first quarter of 2023 remained solid, thus supporting external resilience," he stated.
This was reflected by a managable ratio of Indonesia's net liability IIP to GDP, decreasing slightly from 19.2% to 19.1% in the reporting period. In addition, the structure of Indonesia's IIP liabilities also remained dominated by long-term maturity instruments (94.0%), primarily in the form of direct investment.
"Moving forward, Bank Indonesia is confident that Indonesia's IIP performance will be maintained in line with post-Covid-19 pandemic economic recovery efforts, supported by the synergy between Bank Indonesia's policy mix, the Government, and other relevant authorities. Nevertheless, Bank Indonesia will remain vigilant of the potential risks associated with a net liability IIP on the economy," he concluded. (WHY)
