Govt to Establish International Financial Center to Attract Investment

RRI.CO.ID, Jakarta – Indonesia is preparing new measures to strengthen its role in the global financial industry. The plan to establish the Indonesian International Financial Center (PFII) is one of the strategies to attract investment and deepen the national financial market.

The Financial Services Authority (OJK) has expressed its support for establishing the PFII, with regulations currently being drafted. The OJK views an international-standard financial center as a new driver of growth for Indonesia’s financial sector.

OJK Board of Commissioners Chairperson Friderica Widyasari Dewi said that the PFII has the potential to bring high-quality funding into the domestic market.

“We welcome the government’s plan to establish the PFII to develop and strengthen the national financial sector,” said Friderica during a virtual press conference held in Jakarta on Tuesday, July 7, 2026, as quoted by Antara.

Friderica added that new capital inflows through the PFII must proceed while taking into account the resilience of the national financial system. “However, we must continue to prioritize the stability of the national financial system,” she said.

Friderica explained that the draft law on the PFII is still under discussion among the government, the House of Representatives, and various stakeholders. One aspect currently under review is the oversight mechanism for this financial hub.

The drafting of the PFII Law has received approval from the House’s Commission XI to proceed to the Working Committee stage. The regulation is targeted to undergo first-level approval on July 20 and be ratified during the House's plenary session on July 21.

The PFII is designed as a special zone in Indonesia that supports business activities in the financial sector, financial support services, and other economic activities, thereby strengthening the international financial center ecosystem.

The government believes Indonesia possesses several assets to compete at the global level, ranging from economies of scale, a large domestic market, a strategic geographic location, and long-term growth prospects.

Finance Minister Purbaya Yudhi Sadewa said the government is preparing various incentives for PFII investors, including streamlined immigration, labor, residency, licensing, and tax procedures. The government also proposed establishing a special PFII court to provide legal certainty for international businesses.

Through the PFII, the government hopes Indonesia can establish a financial center with governance standards and competitiveness on par with other international financial centers worldwide. ***