Indonesia Enacts International Financial Center Law

Indonesia's parliament approved the International Financial Center (PFII) law on 21 July 2026, turning the draft into a full act after a first‑stage vote by Commission XI and a plenary vote led by Speaker Puan Maharani. The law comprises ten chapters and 73 articles establishing the PFII authority, a special arbitration body and court, and a range of incentives to draw foreign capital. Tax facilities include a 100 % corporate‑income‑tax holiday for qualifying firms, exemptions on overseas income, value‑added tax, luxury‑goods tax and import duties, as well as Golden‑Visa provisions for foreign investors.

Finance Minister Purbaya Yudhi Sadewa said the PFII aims to attract US$16‑28 billion in investment, deepen Indonesia's financial market, create jobs and support economic growth. Funding for the centre will primarily come from private investors and the sovereign wealth fund Danantara, with the state budget used only as a contingency for judges' salaries. The centre is expected to become operational within 2026, with Bali mentioned as a possible location, and is positioned to compete with hubs such as Singapore, Hong Kong and Dubai.