Finance Ministry: Foreign Investment Entering PFII Will Be Safeguarded for the Long Term

The Ministry of Finance, through the Director General of Financial Sector Stability and Development, Herman Saheruddin, has affirmed that the establishment of the Indonesian International Financial Centre (PFII) aims to attract long-term foreign investment into Indonesia.

Speaking after a working meeting between the Financial System Stability Committee (KSSK) and House Commission XI at the parliamentary complex in Senayan, Jakarta, Herman said the government would also strive to ensure that foreign investment entering the country could remain for the long term and would not easily flow out.

“The idea behind (PFII) is that foreign direct investment comes in for the long term, and doesn’t easily come in and out,” Herman said on Monday, 20 July 2026.

He explained that foreign investment usually enters Indonesia through the capital markets. However, Herman noted that foreign investment entering through the capital markets is typically also very quick to leave.

For this reason, the government established the PFII, which will become a special zone designed to attract foreign investors to place their capital for the long term.

“The principle is to encourage them to build their companies here,” he said.

House Commission XI and the Government agreed to bring the Bill on the Indonesian International Financial Centre (PFII) forward for further processing to be passed into law at the Second-Level Deliberation or a plenary session on Tuesday (21/7).

The decision was taken at the PFII Bill Decision-Making Meeting on Monday, after the Working Committee held a series of working meetings with various parties since early July.

On the same occasion, Finance Minister Purbaya Yudhi Sadewa stated that Indonesia requires a financial sector that is increasingly deep, innovative, efficient and integrated with the international financial system amid increasingly complex global economic dynamics.

Purbaya also said that the establishment of the PFII is intended not only to gather financial sector activities, but also to strengthen financing for the real economy.

As such, the existence of the PFII will encourage increased productive investment that creates jobs and strengthens national economic growth.