Jakarta, CNBC Indonesia \u2013 Finance Minister Purbaya Yudhi Sadewa has\nrevealed that global investors are currently gripped by high uncertainty\nover where to place their capital in order to keep the wheels of the\neconomy turning.<\/p>\n
The cause is the unrelenting warfare in various parts of the world,\nincluding the Middle East, which has grown even hotter after the United\nStates and Iran resumed attacking each other with armed force.<\/p>\n
According to Purbaya, this heightened need for safe havens for global\ninvestment means demand for the development of a new international\nfinancial centre is rising, prompting Indonesia to establish the\nIndonesian International Financial Centre (PFII).<\/p>\n
\u201cWe can see that the uncertainty hasn\u2019t gone away \u2014 the US is still\nattacking Iran. So there is demand for a new world financial centre, and\nwe want to take advantage of that,\u201d said Purbaya on the sidelines of the\nJuly edition of the state budget press conference at his office in\nJakarta, quoted on Thursday (23\/7\/2026).<\/p>\n
\u201cThe higher the uncertainty, the higher the demand for a financial\ncentre. But if everything calms down and there\u2019s peace, it becomes much\nharder for us to compete,\u201d he asserted.<\/p>\n
To attract global investors\u2019 funds into the PFII, the government is\nproviding tax facilities capable of competing with other world financial\ncentres. One concept under consideration is an income tax exemption\nlasting up to 50 years.<\/p>\n
\u201cWe are comparing business practices in similar places elsewhere, and\nwe are slightly more attractive because we are entering last \u2014 we are\ncompeting with Singapore, Hong Kong, Dubai and others. If we aren\u2019t more\nattractive, they won\u2019t come in,\u201d he asserted.<\/p>\n
With the tax and non-tax facilities the government will offer,\nPurbaya is confident that global investors seeking a safe place to park\ntheir capital could choose the PFII, following the passage of the PFII\nbill into law at the DPR plenary session on 21 July 2026.<\/p>\n
\u201cI think with a proposal like that, we will be more attractive than\nDubai, Hong Kong and Singapore,\u201d said Purbaya.<\/p>\n
Purbaya\u2019s remarks align with the assessment of PT Kredit Rating\nIndonesia (KRI), which views the enactment of the PFII law as\npotentially a strategic step in deepening the national financial market\nand boosting Indonesia\u2019s competitiveness as a destination for\ninternational financial activity.<\/p>\n
PT Kredit Rating Indonesia President Director Syaiful Adrian said the\npresence of an international financial centre could open up\nopportunities for increased investment, diversification of funding\nsources, and the development of high value-added financial services.<\/p>\n
\u201cConceptually, an international financial centre can bring together\ninvestors, financial institutions, businesses and professional service\nproviders within a single integrated ecosystem. This has the potential\nto improve the efficiency of financial intermediation while deepening\nIndonesia\u2019s financial market,\u201d said Syaiful Adrian.<\/p>\n
In his view, the experience of several international financial\ncentres shows that an integrated financial ecosystem can contribute\npositively to capital market development and broaden financing options\nfor the business world.<\/p>\n
Syaiful Adrian added that Indonesia possesses a number of economic\nfundamentals supporting the development of an international financial\ncentre, from the large size of the domestic economy and a continuously\ngrowing corporate base, to still-high long-term financing needs.<\/p>\n
\u201cIndonesia has a large domestic market and significant financing\nneeds. If developed properly, the PFII can become one of the means to\nbroaden funding alternatives for the productive sector and enhance the\ncompetitiveness of the national financial services industry,\u201d he\nsaid.<\/p>\n
Moreover, Indonesia\u2019s growing integration with global financial\nmarkets is seen as an important asset in attracting more international\ninvestors and financial industry players.<\/p>\n
Nevertheless, KRI believes the success of the PFII will be determined\nnot only by the establishment of institutions and financial districts,\nbut will also depend heavily on the quality of implementation and policy\nconsistency.<\/p>\n
\u201cLegal certainty, good governance, consistent regulation, credible\noversight, investor protection and ease of doing business will be the\nmain factors shaping market players\u2019 confidence,\u201d said Syaiful\nAdrian.<\/p>\n
In his view, market players\u2019 confidence is an essential foundation\nfor international financial activity to grow in a healthy and\nsustainable manner. KRI also believes the success of the PFII must be\nmeasured by its impact on the real economy.<\/p>\n
That impact includes the PFII\u2019s ability to attract long-term\ninvestment, broaden access to financing for the productive sector,\nimprove the quality of the domestic financial market, and strengthen\nIndonesia\u2019s position in regional and global financial networks.<\/p>\n
\u201cThe success of the PFII will ultimately be judged not only by the\nscale of financial activity it generates, but also by how far its\nexistence benefits the real sector and the national economy as a whole,\u201d\nsaid Syaiful Adrian.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/war-leaves-investors-frantically-seeking-safe-havens-is-indonesias-pfii-ready-to-welcome-them-1784796755", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }