Indonesia prepares regulations for Jakarta International Financial Centre

The Indonesian government is developing derivative regulations to establish the Indonesia International Financial Centre (PFII), starting in Jakarta before expanding to Bali. Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the initiative follows the model of the Dubai International Financial Centre (DIFC).

Jakarta was selected as the initial location due to its readiness as a global city. Current efforts are focused on preparing regulatory infrastructure, implementing derivative rules, and developing necessary human resources.

A key feature of the PFII will be a two-tier dispute settlement mechanism, allowing for only one appeal. To ensure legal certainty for international investors, the system will adopt characteristics of international law, including elements similar to common law, which officials described as being ‘water tight’ for global investment.