DPR Urges Indonesia to Seize Opportunity as Global Wealth Seeks Safe Haven

Jakarta, CNBC Indonesia - Indonesia has officially enacted the International Financial Centre Indonesia (PFII) Law. The government and the House of Representatives (DPR) managed to finalise it in a short time to ensure Indonesia does not lose momentum. This was conveyed by Member of Commission XI of the Indonesian House of Representatives, Mohamad Hekal, to reporters after the DPR Plenary Session on Tuesday. “Indeed, this is a programme we have somewhat prioritised, because the spirit is that with the uncertain global situation, there is a huge opportunity for the movement of funds that we must seize,” he explained. The global uncertainty has been triggered by geopolitical tensions in the Middle East, particularly since the attacks by the United States (US) and Israel on Iran several months ago. The war has spread to other regions, causing turmoil in financial markets and raising concerns among capital owners. “So we hope that the movement of global money can find a new home in Indonesia,” he stressed. Financial centres are not only being developed by Indonesia. Countries like Uzbekistan and Vietnam are also doing the same to attract funds from capital owners. “So we are indeed in a bit of a race. Indonesia really needs investment for its economic growth,” he said. The PFII is a mandate from the Financial Sector Development and Strengthening Law (P2SK). The PFII Law consists of 10 chapters and 73 articles which have been discussed according to legislative procedures. It will later be further detailed in a Government Regulation (PP). “It is not rushed, it is indeed a mandate from the P2SK Law,” Hekal stated. Bali is a possible location for the financial centre. According to Hekal, the PFII will have a significant impact on investment, financial markets, and national economic growth. “The hope is that they are here, their money follows, and the investment opportunities are right in front of them, so they do not find it too difficult with tax regulations and other matters, while rules outside the PFII area remain the same,” he concluded.