Indonesia Begins Talks on Bill for International Financial Hub

RRI.CO.ID, Jakarta - The Indonesian government and the House of Representatives (DPR RI) have begun deliberations on the Bill on the Indonesia International Financial Center (PFII). It is a strategic initiative aimed at establishing a world-class financial hub to attract investment, strengthen the national financial sector, and enhance Indonesia’s global competitiveness.

Speaking at a working meeting with Commission XI of the House of Representatives in Jakarta on Thursday, July 2, 2026, Finance Minister Purbaya Yudhi Sadewa, said the bill is part of the government's broader effort to build a stronger, more inclusive, sustainable, and globally competitive economy in line with President Prabowo Subianto’s Asta Cita development agenda.

“This bill has been drafted as part of the government's efforts to realize a stronger, more inclusive, sustainable, and globally competitive national economy, as reflected in the Asta Cita program,” the minister said.

He noted that Indonesia has strong fundamentals to play a larger role in the global financial ecosystem, supported by its large economy, vast domestic market, strategic geographic location, abundant natural resources, and favorable long-term growth prospects.

However, Indonesia has yet to establish a dedicated international financial district with governance standards, legal certainty, institutional frameworks, and competitiveness comparable to leading global financial centers. To address this gap, the government has proposed the establishment of the Indonesia International Financial Center (PFII), a special jurisdiction designed to accommodate the needs of the global financial services industry while deepening the domestic financial sector.

“The establishment of PFII aims to enhance Indonesia’s competitiveness as an international financial center, deepen the domestic financial sector, promote financial innovation, increase investment, facilitate financing for the real sector and national strategic projects, support sustainable finance, and strengthen the financial sector’s contribution to overall economic growth,” the minister said.

He added that the bill is mandated under Article 248A of Law No. 4 of 2026, which amended Law No. 4 of 2023 on Financial Sector Development and Strengthening (PPSK), providing a solid legal foundation for the creation of the financial center as part of Indonesia’s financial sector reform agenda.

Under the proposed legislation, PFII would be established within the territory of the Republic of Indonesia as a special jurisdiction dedicated to supporting financial services, related business activities, and other economic sectors that contribute to the development of an international financial ecosystem.

“PFII remains an inseparable part of the territory of the Republic of Indonesia and will remain fully subject to Indonesia’s national sovereignty,” he said.

To create a competitive business environment, the bill also proposes a range of investment-friendly incentives, including streamlined immigration procedures, labor regulations, residency provisions, licensing, and tax incentives. These measures are intended to attract long-term investment and encourage high-value economic activities.

In addition, the government has proposed establishing a special PFII court to provide greater legal certainty for international businesses. The court would have jurisdiction over disputes arising from business activities within PFII, as well as international commercial disputes connected to the financial center.

“One of the most critical factors behind the success of any international financial center is the availability of legal certainty and a dispute resolution mechanism that is fast, professional, and trusted by international businesses,” the minister said. The government believes the establishment of PFII will generate broad economic benefits beyond the financial district itself by increasing investment, creating jobs, facilitating knowledge transfer, developing human capital, and improving Indonesia’s overall competitiveness.