Speaking at a House of Representatives (DPR RI) Commission XI working\ncommittee meeting on the PFII Bill in Jakarta, the Finance Minister\nemphasized that the mega-project is expected to drive productive\ninvestments that create jobs and bolster national economic growth.<\/p>\n
\u201cThe establishment of the Indonesian International Financial Center\naims to elevate Indonesia\u2019s global competitiveness and firmly strengthen\nour national economic sovereignty,\u201d Purbaya remarked.<\/p>\n
Furthermore, he explained that the PFII aims to encourage deepening\nand innovation within the financial sector while attracting both\ndomestic and global investments and business actors.<\/p>\n
The financial hub will facilitate financing for the real sector,\nnational strategic projects, sustainable and climate initiatives,\ninfrastructure development, and other critical sectors to maximize the\nfinancial industry\u2019s contribution to the national economy.<\/p>\n
Purbaya noted that the center also aims to promote equal economic\nopportunities, facilitate technology transfer, generate employment, and\nenhance the capacity of Indonesia\u2019s human resources.<\/p>\n
In addition, the PFII is designed to strengthen the contribution of\nIslamic finance, the green economy, the blue economy, and industrial\ntransformation, while developing internationally competitive capital\nmarkets, financial technology, digital finance, and robust market\ninfrastructure.<\/p>\n
To achieve these goals, the government and the DPR have focused the\nPFII Bill on key structural regulations. These include defining the\nPFII\u2019s authority and institutional framework, as well as outlining its\nstrategic direction as a competitive international hub capable of\nattracting foreign capital.<\/p>\n
The legislation also regulates the scope of business activities\nwithin the PFII\u2019s jurisdiction, covering the financial sector,\nsupporting financial services, and related businesses in other\nsectors.<\/p>\n
Structurally, the bill mandates the formation of several dedicated\nbodies, including the PFII Advisory Council, the PFII Board, the PFII\nManagement Institute, and the PFII Financial Services Supervisory\nAgency.<\/p>\n
To ensure efficient dispute resolution, an independent PFII\nArbitration Institute and a specialized PFII court will also be\nestablished.<\/p>\n
Purbaya further explained that the bill includes provisions for\ncompetitive tax incentives and administrative facilities to attract\nglobal investors.<\/p>\n
The fiscal incentives will encompass relief on income tax (PPh),\nvalue added tax (VAT), sales tax on luxury goods (PPnBM), and customs\nduties. Meanwhile, non-fiscal facilities will include the provision of\ngolden visas, streamlined immigration, flexible employment regulations,\nand simplified business licensing and residency permits.<\/p>\n
To align with global financial hub practices, specific provisions\ndictate that English will be used and business operations within the\nPFII will be transacted in foreign currencies.<\/p>\n
Furthermore, the legal framework applicable within the zone allows\nPFII regulations to adopt, incorporate, or adapt principles of foreign\njurisprudence, international commercial law, standard international\nfinancial center practices, and global benchmarks based on propriety and\nreasonableness.<\/p>\n
\u201cOn behalf of the government, we accept the results of the\ndiscussions on the draft law at the Working Committee level, which\nserved as the basis for the decision-making process for today\u2019s Level I\ndiscussions,\u201d Purbaya concluded.<\/p>\n
Following the successful conclusion of the Level I committee talks,\nthe executive branch has formally accepted the draft. The PFII Bill will\nnow advance to a Level II vote during an upcoming plenary session of the\nIndonesian parliament to be passed into law.<\/p>\n
Related news: Indonesia plans facilities for its international\nfinancial center<\/p>\n
Related news: Bank Indonesia backs financial hub to boost external\nresilience<\/p>\n
Related news: Danantara pledges support for international financial\nhub in Bali<\/p>\n
Translator: Rizka Khaerunnisa, Yashinta Difa<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesias-financial-hub-to-focus-on-productive-investment-and-global-competitiveness-1784559013", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }