Finance Minister Purbaya Denies Bali Financial SEZ Will Become Tax Haven, Foreign Funds Said to Finance Indonesian Investments

JAKARTA, KOMPAS.com - Finance Minister Purbaya Yudhi Sadewa has denied the perception that the planned special economic zone (SEZ) for the financial sector in Bali will merely serve as a tax haven.

According to him, the zone is being prepared to attract inflows of foreign capital into domestic investments while strengthening national development financing.

“Why is it suddenly being called a tax haven design? Have they even seen what the plan is like?” said Purbaya during a press conference of the Financial System Stability Committee (FSSC), on Thursday (7/5/2026).

The zone will eventually use a specific legal system based on common law to enhance its appeal to global investors.

Purbaya explained that foreign funds entering the zone will indeed not be subject to immediate taxation. The government aims to utilise these capital flows as a source of financing for new investments in Indonesia.

“The money there can be used to invest in Danantara projects or projects outside the economic zone with good prospects,” he said.

Investors placing funds in the financial zone can also purchase government bonds or enter the national real sector.

The government hopes this step will strengthen sustainable domestic financing.

“My buyers of government bonds will also increase. So the sources of development financing for both private and public sectors will become stronger,” Purbaya stated.

When the capital is used for productive investments outside the zone and generates economic profits, the government will still collect taxes.

“If they ask for tax incentives while in the financial centre, I’ll give them. But when it goes out and there are results, there are taxes and so on, the economy moves,” said Purbaya.

According to him, the scheme is also expected to help maintain the stability of the rupiah’s exchange rate. The influx of large amounts of foreign funds is seen as able to strengthen the supply of foreign exchange in the domestic market.

Purbaya added that the design of the financial SEZ is still being refined and is targeted to launch soon.