DPR Targets Completion of Indonesia Financial Centre Law by September 2026 - IKPI
The House of Representatives (DPR), in collaboration with the government, aims to complete discussions on specific regulations regarding the establishment of the Indonesia Financial Centre (IFC) within the next three months. This regulation will serve as the legal foundation for developing a national financial hub intended to attract global investment.
The Chairman of Commission XI of the DPR, Mukhamad Misbakhun, stated that the legal umbrella for the IFC will be drafted through a dedicated law once the revision of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (PPSK) is officially passed. “It will be drafted through its own Law and will be completed at the latest 3 months after the PPSK Law is finalised,” Misbakhun said in Jakarta.
According to Misbasting, the government has not yet determined the specific location for the IFC development. However, the prepared concept involves the creation of a special zone featuring various facilities and special treatments to enhance investment attractiveness. Incentives currently under consideration include tax policies, civil dispute resolution mechanisms, zone governance, and a supervisory system designed to be more competitive than other regions.
Misbakhun explained that the IFC is projected to become a hub for financial and investment activities, accommodating various types of financial service institutions, including banking, insurance, pension funds, and venture capital firms. “This will certainly become Indonesia’s financial centre to serve as an investment hub. People will establish companies there, involving any form of financial institution, from banking and insurance to pension funds and venture capital,” he added.
He noted that the existence of specific regulations is necessary to build investor confidence and encourage global companies to use Indonesia as a base for business development and investment. Regarding the ‘Family Office’ concept currently being prepared by the government, Misbakhun emphasised that this scheme will be integrated into the IFC ecosystem.
Previously, the government has been drafting a regulatory framework for the establishment of the IFC, which is also referred to as a Special Economic Zone (SEZ) for the financial sector. One location under consideration is the Kura-Kura Bali SEZ, which is deemed to have the potential to be developed as an international financial centre in accordance with the directives of President Prabowo Subianto.