Government to Launch International Financial Centre in Jakarta as Interim Step

IKPI, Jakarta: The government has confirmed that the initial operations of the Indonesian International Financial Centre (PFII) will begin in Jakarta before the main zone is developed in Bali.

This scheme was chosen as a transitional arrangement whilst awaiting the completion of infrastructure and the international financial centre ecosystem on the Island of the Gods.

Minister of Investment and Downstreaming/Head of BKPM Rosan Roeslani said the development of the main zone in Bali is expected to take around two to three years.

Therefore, the government decided to begin operations in Jakarta first.

“Perhaps during this transitional period over the next two to three years, it may be established first in Jakarta during this transition before it is further developed there,” said Rosan at the State Palace, quoted on Friday (24/7).

According to Rosan, the government wishes to accelerate the implementation of the international financial centre concept without having to wait for all construction in Bali to be completed. In this way, initial PFII activities can proceed whilst development of the main zone continues.

“But preparations are needed, perhaps for two or three years, until it becomes a financial centre of international standing,” he said.

He assessed that the presence of an international financial centre will strengthen Indonesia’s competitiveness in attracting global investment flows. Investor interest in the project, Rosan said, has already begun to show through a number of meetings held by the government.

Rosan revealed that during a visit to Bali several days ago, he met with 11 investors comprising family offices and international investors. In that meeting, they discussed plans for the establishment of the PFII.

“A few days earlier I was also in Bali, meeting with 11 investors from family offices and others, and the response has been very, very positive regarding the presence of this financial centre that will be established in Indonesia,” he disclosed.

In addition to preparing interim operations in Jakarta, the government has also begun to refine the institutional aspects needed to support the running of the international financial centre. One of the matters being prepared is the appointment of the zone’s leadership, who will lead the IIFC.

“Perhaps those preparations include preparations for the appointment, by the President, of what would be termed its governor, then the zone’s leader, and other positions,” Rosan concluded. (ds)