Indonesia moves to launch International Financial Center to attract global capital

Vice‑chair of Commission XI of the DPR RI, Mohamad Hekal, said the accelerated establishment of the Pusat Finansial Internasional Indonesia (PFII) is driven by a global momentum as many international funds, including family‑wealth assets, search for a new domicile. He noted that geopolitical tensions such as the Middle‑East conflict and the Russia‑Ukraine war are creating opportunities for Indonesia to capture these capital flows.

The PFII is mandated by the Financial Sector Development and Strengthening Law (P2SK) and is to be created within three months. It will feature a competitive legal framework with dedicated dispute‑resolution mechanisms, ad‑hoc commercial judges, arbitration, use of English in contracts, and compliance with international anti‑money‑laundering and counter‑terrorism financing standards. Bank Permata chief economist Josua Pardede said the centre could deepen the domestic financial market and provide long‑term financing for national development.