Five Key Facts on Indonesia's Planned International Financial Centre (PFII)
The government is planning to establish the Indonesia International Financial Centre (PFII), with the draft bill currently under discussion with House of Representatives (DPR) Commission XI. The commission is targeting to pass the legislation into law by 21 July 2026. Here are five key facts regarding the establishment of the PFII:
- Commission XI Reveals PFII Tax Facilities Could Be 0% for 50 Years
Chairman of Commission XI DPR RI M. Misbakhun confirmed that discussions with the government are ongoing. He noted the government has been very progressive in proposing the PFII bill. According to Misbakhun, the PFII will accommodate all types of businesses, including investment banks and family offices. Notably, the PFII will offer a 0% tax rate. The government plans to provide this 0% tax facility for 50 years. Misbakhun personally believes the tax exemption should be permanent for as long as the PFII exists, but considers the 50-year period acceptable.
- Institutions on the PFII Advisory Board
Misbakhun revealed that the PFII will be supervised by a special Financial Services Supervisory Institution (LPJK), separate from the Financial Services Authority (OJK). This special economic zone will have an Advisory Board because it will operate under special, more relaxed regulations compared to the rest of Indonesia. The PFII Advisory Board will consist of the Governor of Bank Indonesia, the Minister of Finance, the Chairman of the OJK, and the Chairman of the Indonesia Deposit Insurance Corporation (LPS).
- PFII Board of Governors to be Appointed Directly by the President
Misbakhun stated that the PFII will be led by a Board of Governors, and the Governor will be appointed directly by President Prabowo Subianto.
- PFII Location May Not Be Limited to Bali
Deputy Chairman of Commission XI DPR RI Fauzi H. Amro indicated that there is a possibility the PFII could be located in more than one place. He suggested that the final decision on the location be left to the President to avoid polemics, mentioning Bali, Jakarta, Batam, or the Nusantara Capital City (IKN) as potential options. Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that Bali would be the location for the PFII development. He noted that supporting infrastructure in Bali is already complete, ranging from international-standard hospitals in the Sanur Special Economic Zone (KEK) to its world-renowned tourism sector. Airlangga stated the PFII would be placed in a special KEK in Bali, away from traffic congestion.
- Dubai Financial Centre Serves as Benchmark for PFII Development
The government is preparing Bali to become the PFII, hoping to strengthen Indonesia’s competitiveness as a global financial centre. The Ministry of State-Owned Enterprises (BP BUMN) stated that the Dubai International Financial Centre (DIFC) is being used as a benchmark for the PFII’s development, citing its success in transforming Dubai into a global financial hub. The DIFC offers a 0% corporate tax incentive for 40 years and hosts over 50,000 professionals. Through this adapted model, the PFII in Bali is expected to attract global investment, deepen the domestic financial market, and strengthen Indonesia’s international position. To support the development, BP BUMN Head and Danantara COO Dony Oskaria held a meeting on 14 July 2026 with Danantara CIO Pandu Sjahrir and other directors to discuss investment strategy readiness and the development of a global-standard financial ecosystem.