Indonesia's Financial Center Law Enacted to Attract Global Capital

Indonesia’s parliament approved the International Financial Center Act (PFII) on 21 July 2026, completing the three‑month deadline set by the Finance Development and Strengthening Law (P2SK). Lawmakers say the legislation creates a dedicated financial hub to compete with centers in Qatar, Uzbekistan, Vietnam and others, aiming to capture global capital flows.

The government is evaluating two possible locations – Jakarta and Bali – with existing facilities owned by state‑owned Danantara. A transitional operation may begin in Jakarta for 2–3 years before a permanent site is chosen. CEO Rosan Roeslani said the PFII could start operating within the next two to three years, leveraging investor interest and potential family‑office participation from China and Hong Kong.

Officials highlighted the need for competitive fiscal incentives and robust regulatory oversight to attract investors while maintaining fiscal balance. The implementation will involve a dedicated oversight board and coordination with the Financial Action Task Force to ensure transparent, high‑standard governance.