Indonesia Advances Plans for International Financial Center

The Indonesian government is drafting legislation to establish a Pusat Finansial Internasional Indonesia (PFII), a specialised financial hub intended to attract high‑quality foreign investment and deepen the domestic financial market. The draft law, discussed by the Finance Ministry and the DPR, outlines incentives such as streamlined licensing, tax benefits and dedicated immigration and labour rules for the zone.

The Financial Services Authority (OJK) has voiced strong support for the PFII, emphasizing that a separate regulatory framework and possibly a distinct legal entity are needed to ensure robust governance while preserving the stability of the national financial system. OJK officials, including commissioners Friderica Widyasari Dewi and Hernawan Bekti Sasongko, highlighted the importance of an independent regulator with clear mandates.

Location considerations suggest the PFII will not be placed in the new capital, IKN; options such as Bali and other sites offering greater appeal to international investors are being examined. The initiative is positioned as a strategic move to elevate Indonesia’s role in the global financial ecosystem and boost sustainable economic growth.