RRI.CO.ID, Jakarta — Indonesia is preparing to build the Indonesia International Financial Center (PFII) as a world-class hub for transactions, investments, and financial services. In a statement to the media, Finance Minister Purbaya Yudhi Sadewa, outlined plans ranging from the chosen location to tax incentive strategies.

Following the approval of the draft law by the Indonesian House of Representatives, Finance Minister Purbaya Yudhi Sadewa, outlined a number of regulations and strategies for Indonesia’s new financial center. This statement was made during the monthly press conference, APBN KiTA (State Budget Performance and Facts), for July 2026, held in Jakarta on Tuesday, July 21, 2026.

The Finance Minister explained that the selection of the area was based on the findings of an independent team's study. The study assessed infrastructure readiness, cost efficiency for the state, and attractiveness to foreign investors. Although no final decision has been made, if the selected location has Special Economic Zone (SEZ) status, its status will be adjusted to avoid double jurisdiction.

“But basically, we’ll see what the best option is. What’s clear is that the infrastructure there must be easy to build, or already partially in place, and the location must be attractive to wealthy foreign investors,” the minister said.

Beside location, the government has also confirmed the offering of a 0 percent tax incentive for 50 years during the initial phase. This step is a key strategy to boost Indonesia’s competitiveness in attracting global capital. Finance Minister Purbaya added that Indonesia must present a far more attractive offer, given its position as a new player that must compete directly with other international financial centers, such as Singapore, Hong Kong, and Dubai.

He stated, “For the first phase, it looks like that. We’re comparing it to business practices in similar locations elsewhere. We need to be a little more attractive. Why? Because we’re the last to enter the market. We’re competing with Singapore, Hong Kong, Dubai, and others.”

Purbaya added that, in addition to foreign investors, domestic companies and state-owned enterprises will also be allowed to establish entities within the Indonesia International Financial Center area. He said domestic companies may do so as long as they meet the requirements and conditions set by the government.