DPR Passes PFII Bill, Purbaya Says Indonesia Will Have World-Class Financial Ecosystem
Finance Minister Purbaya Yudhi Sadewa stated that the presence of the International Financial Centre Indonesia (PFII) is not intended to replace the existing domestic financial system, but rather to complement it with a credible, independent, and globally competitive financial ecosystem. “This PFII Bill was born from the awareness that as the largest country in Southeast Asia and a member of the G20, it is time for Indonesia to have its own credible, independent, integral, and globally competitive financial centre,” Purbaya said while delivering the government’s final opinion on behalf of the President at the 26th DPR Plenary Meeting in Jakarta, Tuesday (21/7/2026).
During the deliberation process by the Working Committee (Panja) up to the Level I Discussion Meeting, Purbaya explained that the government and the DPR had engaged in constructive discussions to ensure the PFII Bill is not only attractive to global investors but also aligned with national interests. He further stated that the law rests on three main pillars, the first being access to capital and investment. The PFII is expected to attract sustainable foreign capital inflows and quality portfolio investments as a source of long-term financing to expand the national economy’s capacity. Consequently, Indonesia’s economy is expected to grow faster towards the eight per cent target set by President Prabowo Subianto.
“If the national economy can expand and grow faster, this will yield significant long-term benefits for national development across all regions of Indonesia,” Purbaya said. He added that a new tax base will also be created. Furthermore, new employment opportunities will arise as a multiplier effect from the availability of long-term financing from the international community to support equitable national development.
The second pillar is innovation and governance. Purbaya explained that the PFII will build a comprehensive financial services ecosystem, supported by the latest technology, world-class cyber security, and grounded in the principles of good governance and international financial management best practices. The PFII’s distinctiveness also lies in strengthening the legal aspect through the establishment of an efficient, consistent, and independent PFII Court and PFII Arbitration Institution. These two institutions are expected to provide certainty and justice for business actors while upholding the sovereignty of the Indonesian legal system.
The third pillar is strengthening national competitiveness and human resource capacity. Purbaya said the PFII will encourage job creation for Indonesia’s top talents while accelerating the transfer of technology and knowledge, particularly in the financial sector. “The long-term impact is the efficiency of capital costs and increased competitiveness for the national economy,” he said.
The main points of the PFII Bill’s regulation include general provisions, the establishment, status and objectives of the PFII, business activities, institutional matters, the PFII Arbitration Institution, the PFII Court, central and regional government support, tax and other facilities, special provisions within the PFII area, and closing provisions. “This PFII Bill is not merely a formal regulation, but a new architecture for Indonesia’s financial future. It is a shared commitment between the DPR and the government to affirm Indonesia’s position as a main pillar of the world economy,” Purbaya concluded.