DPR Finalises Draft of International Financial Centre Bill, Here Are the Full Details

The working committee for the International Financial Centre (PFII) Bill in the House of Representatives (DPR) has finalised the draft legislation to be agreed upon with the government at the first level. Mohamad Hekal, Chair of the PFII Bill Working Committee and Deputy Chair of Commission XI from the Gerindra Party, stated that the agreed draft consists of 10 chapters and 73 articles. The details of the draft are as follows: Chapter 1 covers general provisions regarding definitions and principles of PFII implementation. Chapter 2 addresses the establishment, status, and objectives of the PFII. Chapter 3 regulates business activities, including those in the financial sector, financial support, and other sectors. Chapter 4 concerns institutional matters, divided into six parts: delegation of management authority from the President to the PFII Governor and the formation of an advisory board; the status, organs, appointment, dismissal, and duties of the PFII Board, including the formation of supporting committees; the status, organs, duties, authority, initial capital, work plans, and asset management of the PFII Management Agency (LP PFII); the status, organs, duties, and authority of the PFII Financial Services Authority (LPJK PFII); accountability through reporting to the President and the relevant DPR committee; and further regulation of the board and agencies via a Presidential Regulation. Chapter 5 establishes a PFII Arbitration Institution as an alternative dispute resolution mechanism. Chapter 6 details the PFII Court as a special court, covering its status, authority to examine and adjudicate cases, composition, the powers of the chief judge, procedural law, and its budget sourced from the LP PFII. Chapter 7 outlines support from the central and regional governments. Chapter 8 specifies tax and other special facilities, including income tax facilities, VAT and luxury goods sales tax facilities, customs facilities, tax treatment of inheritances, tax treatment of initial capital funding, reporting and administration obligations for businesses and experts, sanctions related to tax facilities, and other special facilities for businesses and experts in the PFII area. Chapter 9 covers specific provisions such as the language of law, licensing, foreign exchange use, and financial transactions within the PFII. Chapter 10 contains closing provisions regarding exceptions to other laws, mandates for implementing regulations, the law’s entry into force, and its placement in the State Gazette of the Republic of Indonesia.