RRI.CO.ID, Jakarta – Indonesia is preparing to boost its investment appeal by establishing the Indonesia International Financial Center (PFII), a specialized institution designed to encourage long-term foreign investment and support national economic growth.

Director General of Financial Sector Stability and Development (SPSK) at the Finance Ministry, Herman Saheruddin, said the PFII will serve as a tool to attract more stable foreign direct investment (FDI).

“PFII is meant to ensure that FDI is long-term -- not something that flows in easily and flows out just as easily,” Herman said after attending a working meeting between the Committee on Financial System Stability (CFSS) and the House of Representatives’ Commission XI at the Parliament Complex in Jakarta on Monday, July 20, 2026, as quoted by Antara.

He explained that foreign investment has largely entered through the capital market, which is open to inflows but vulnerable to outflows. “The principle is to encourage investors to establish their businesses here,” he said.

House Commission XI and the government have agreed to advance the PFII Bill to the Second Reading or Plenary Session on Tuesday, July 21. The decision followed a series of discussions with stakeholders since early July.

Finance Minister Purbaya Yudhi Sadewa said Indonesia needs a financial sector that is deeper, more innovative, more efficient, and better integrated with the global financial system amid international economic dynamics.

He added that the PFII will not only consolidate financial sector activities but also strengthen financing for the real sector. As a result, productive investment and job creation are expected to increase, thereby bolstering national economic growth. ***