Indonesia's PFII financial center moves forward with Bali site and regulations

Indonesia is advancing the creation of the International Financial Center (PFII) as mandated by the 2026 Financial Sector Development Law. The government plans to locate PFII in a new Special Economic Zone (KEK) in Bali, distinct from the existing Sanur KEK, and aims to have the supporting government regulation (PP) completed before President Prabowo Subianto’s speech on 16 August 2026, following the expected passage of the PFII bill in the DPR.

Officials say the Bali location was chosen for its lifestyle, low‑density environment and international‑standard health facilities, which they hope will attract global investors and ultra‑high‑net‑worth individuals. Experts estimate PFII could draw up to US$27.7 billion of foreign capital and help fund industrial downstream projects, green‑economy targets and other strategic programs that require trillions of rupiah.

The project seeks to strengthen Indonesia’s financial sovereignty by offering a legal framework and incentives comparable to Singapore and Dubai, while establishing robust anti‑money‑laundering and arbitration mechanisms.