Finance Ministry: Indonesia Financial Centre to Attract Long-Term Foreign Investment

The Ministry of Finance has emphasised that the establishment of the Indonesia International Financial Centre (PFII) is intended to attract long-term foreign investment, rather than the ‘hot money’ that easily enters and exits the country.

Director General of Financial Sector Stability and Development (SPSK) Herman Saheruddin explained that foreign investment typically enters Indonesia through the capital market, where it is easy to enter but also easy to leave. “The principle is to get them to build their companies here,” Herman stated after a meeting at the Parliament Complex in Senayan, Jakarta, on Monday.

To this end, the government is creating a special zone to attract long-term capital investment. Commission XI of the House of Representatives (DPR RI) and the government have agreed to proceed with the Bill on the Indonesia International Financial Centre for ratification into law during a Level II Plenary Session on Tuesday (21/7).

The decision was made following a series of working committee meetings held since early July. On the same occasion, Minister of Finance Purbaya Yudhi Sadewa stated that Indonesia needs a deeper, more innovative, efficient, and internationally integrated financial sector amidst increasingly complex global economic dynamics. Purbaya added that the PFII is not only intended to concentrate financial sector activities but also to strengthen real sector financing.