RRI.CO.ID, Jakarta – The House of Representatives (DPR) has officially passed the Draft Law (RUU) on the Indonesian International Financial Center (PFII) into law.

The regulation is considered urgent to strengthen Indonesia’s competitiveness in global investment, deepen the financial sector, and expand access to financing for the real sector and national strategic projects.

The ratification was approved during a plenary session at the DPR Building in Jakarta on Tuesday, July 21, 2026.

House Speaker Puan Maharani requested approval from all factions before striking the gavel, which was met with unanimous consent.

Deputy Speaker of Commission XI Mohamad Hekal explained that deliberations on the PFII Bill began on July 2, 2026, after it was included in the National Legislation Program (Prolegnas). Public participation was gathered through hearings from July 6–9, followed by discussions and finalization from July 9–20.

The PFII Law establishes the legal foundation for an international financial center in Indonesia. It regulates the PFII’s organization, institutions, business activities, oversight mechanisms, and dispute resolution through arbitration institutions and special courts.

The law also provides incentives to boost investment attractiveness, including facilities for income tax (PPh), value-added tax (PPN), luxury goods sales tax (PPnBM), and customs, along with non-fiscal facilities such as immigration, licensing, and residency.

Finance Minister Purbaya Yudhi Sadewa said the PFII’s establishment aims to consolidate financial sector activities and strengthen real sector financing to increase productive investment and job creation.

“The establishment of the Indonesian International Financial Center aims to enhance Indonesia’s competitiveness as an international financial hub and strengthen national economic sovereignty,” he said.

He added that PFII is expected to attract investors and global financial industry leaders while encouraging the development of the national financial market, financial sector innovation, and financing for strategic projects, infrastructure, green financing, climate financing, and other productive sectors.

The government also aims to use the PFII to expand economic opportunities by promoting technology transfer, creating jobs, improving human resource quality, and strengthening Islamic finance, the green economy, the blue economy, financial technology, and digital finance.

The PFII Law includes provisions to support international competitiveness, such as the use of English in business activities and foreign currency transactions. It also adopts international commercial law practices, standards, and principles tailored to global financial centers.

The government considers this legal framework a crucial foundation for Indonesia’s ability to compete with regional financial hubs while reinforcing the financial sector’s contribution to national economic growth. ***