What changed
2026-08-15 00:45 UTC → 2026-08-21 07:43 UTC ·
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Indonesia PFII law enacted, to launch preparations continue PFII operations in Jakarta
Indonesia’s parliament passed Following the enactment of the International Financial Center Indonesia (PFII) law on 21 July 2026, meeting the three-month deadline set by the Financial Sector Development Indonesian government has announced that initial operations will begin in Jakarta. This decision, following directives from President Prabowo Subianto, leverages Jakarta’s established financial ecosystem and Strengthening Act. The 73-article act establishes infrastructure to ensure the center becomes operational quickly. While Jakarta serves as the immediate hub, the government is evaluating plans to expand the PFII authority, a dedicated arbitration institute, and a financial-stability committee aligned to Bali. This expansion aims to combine high-end financial activities with FATF standards. world-class tourism to build a family office ecosystem, though development in Bali is expected to take longer due to required infrastructure construction. One potential site in Bali under evaluation is land owned by the Daya Anagata Nusantara Investment Management Agency (Danantara). To further attract global capital, the law offers significant incentives, including a 100% corporate-income-tax holiday for qualifying firms, exemptions on overseas income, VAT, luxury-goods tax, and import duties. Commission XI Chairman Mukhamad Misbakhun noted stated that further incentives, such as incentives may include Golden Visas Visas, 0 percent cumulative tax facilities for expatriates, and potentially dual citizenship, are being considered to draw funds into the real sector. option of dual citizenship. The government is evaluating Jakarta and Bali as potential sites; a transitional operation may begin in Jakarta for two to three years before a permanent location goal is chosen. Some officials have proposed a new Special Economic Zone in Bali to leverage its international-standard facilities. PFII chief executive Rosan Roeslani expects the centre to become operational within two to three years, targeting family-office participation from China and Hong Kong. Vice-chair of DPR Commission XI, Mohamad Hekal, highlighted that geopolitical tensions, such as use the Russia-Ukraine war and Middle East conflicts, create a window for Indonesia PFII to capture capital flows seeking new domiciles. While draw funds into the hub aims real sector to deepen domestic markets and fund national development, stimulate job creation. However, economic analysts warn caution that achieving high the 6 percent economic growth targets target outlined in the 2027 State Budget Draft (RAPBN) cannot rely solely on investment. Experts warn that because much investment remains concentrated in capital-intensive sectors like infrastructure, the government must also address recover domestic purchasing power and ensure equitable job absorption to ensure benefits reach prevent growth from failing to benefit the broader population. middle and lower classes.