Finance Ministry: Financial Services Entering PFII Must Be Incorporated

Jakarta (ANTARA) - The Ministry of Finance has stated that financial services companies intending to enter the Indonesia International Financial Centre (PFII) must establish their own incorporated legal entity, and cannot merely open a branch.

“They must be incorporated there (in PFII). So, they cannot just open a branch,” said Herman Saheruddin, Director General of Financial Sector Stability and Development at the Ministry of Finance, when met after attending a working meeting between the Financial System Stability Committee (KSSK) and Commission XI of the House of Representatives (DPR RI) at the Senayan Parliamentary Complex in Jakarta on Monday.

He made the remarks when asked about the possibility of national financial services companies entering the PFII.

Herman emphasised that domestic financial services must also establish a financial sector entity in the PFII and comply with the requirements set by the government.

He also opened the door for domestic financial services to obtain a 0 per cent tax incentive, provided they meet the criteria that the government will regulate through a Government Regulation (PP).

“It will be regulated in the PP later,” Herman said.

Nevertheless, he reiterated that the PFII was established with the aim of attracting Foreign Direct Investment (FDI).

He explained that the formation of the PFII is the government’s step to enlarge the economic pie from foreign funds.

“Because if we rely on domestic sources alone, the pie stays the same size,” Herman said.

The Association of State-Owned Banks (Himbara) has declared its readiness to serve as a gateway for global capital entering investment opportunities in Indonesia through the Indonesia International Financial Centre (PFII) ecosystem.

Such global capital encompasses foreign direct investment (FDI), institutional investors, sovereign wealth funds, family offices, and capital markets.

Eko Setyo Nugroho, Director of Institutional Affairs at PT Bank Negara Indonesia (Persero) Tbk (BNI), explained that the bank has conducted benchmarking against several established international financial centres (IFCs), namely Abu Dhabi Global Market, Dubai International Financial Centre, the International Financial Centre in Hong Kong, and the Singapore International Financial Centre.