Government to Detail 0% Tax Incentive Criteria for International Financial Centre in Regulation

The Ministry of Finance has confirmed that the criteria for financial services eligible for a 0% tax incentive within the International Financial Centre (PFII) will be stipulated in a Government Regulation (PP). Herman Saheruddin, Director General of Financial Sector Stability and Development, stated that the incentive is specifically aimed at attracting foreign investment into the PFII. “The criteria will be regulated in the PP,” Herman said at the Parliament Complex in Senayan, Jakarta, on Monday, 20 July 2026. He further clarified that the 0% Income Tax (PPh) incentive does not mean a complete tax exemption, as it will remain subject to the Global Minimum Tax rules.

During the deliberation of the PFII Bill, Minister of Finance Purbaya Yudhi Sadewa explained that the legislation includes various tax and non-tax facilities to attract investment. The tax facilities cover Income Tax (PPh), Value Added Tax (PPN), and/or Sales Tax on Luxury Goods (PPnBM), as well as customs facilities. Other special facilities include golden visas, immigration services, employment permits, licensing, and residency rights. The government hopes these measures will encourage Indonesian investors to repatriate their special purpose vehicles (SPV) from foreign jurisdictions.