Government Unveils Incentives to Lure Foreign Investors into Indonesia

The government is planning to establish an Indonesia International Financial Centre (PFII). The PFII Bill is currently being deliberated by the government and the House of Representatives (DPR), with a target to complete the discussions by July. According to Minister of Finance Purbaya Yudhi Sadewa, the PFII Bill stipulates a range of ease-of-doing-business measures to enhance investment appeal. The PFII is expected to strengthen the national financial sector, drive investment and financing for strategic projects, and support Indonesia’s economic growth. “The PFII is expected to be a catalyst for deepening the national financial sector, developing financial service innovation, increasing investment, facilitating financing for priority sectors and national strategic projects, sustainable financing, and strengthening the financial sector’s contribution to Indonesia’s economic growth,” Purbaya stated, as quoted from a Ministry of Finance press release on Saturday (4/7/2026). Various facilities are being prepared, including ease of immigration, employment, residency, and licensing, as well as carefully designed incentives to attract long-term investment and encourage high-value-added economic activities. In terms of legal certainty, the government is proposing the establishment of a PFII Court with special authority to examine, adjudicate, and decide disputes related to business activities within the PFII area, as well as international commercial disputes connected to the zone. The presence of a fast, professional, and credible dispute resolution mechanism is expected to further boost investor confidence in Indonesia as a global investment destination. The bill also opens the door for the application of international best practices through the adoption and adaptation of international commercial law principles and global standards proven to enhance efficiency and certainty in international business activities. Purbaya stressed that the policy is not intended to diminish national legal sovereignty, but rather to strengthen Indonesia’s competitiveness in attracting global investment and economic activity. The formulation of these provisions has also been conducted through dialogue and coordination with the Supreme Court. The government believes the benefits of establishing the PFII will be widely felt, not only by business actors within the zone but also by the national economy through increased investment, job creation, knowledge and technology transfer, human resource development, and the strengthening of Indonesia’s global competitiveness. To date, Indonesia has not had an international financial centre specifically designed with governance, institutional, and legal certainty standards comparable to other global financial hubs. On this basis, the government considers it necessary to establish the PFII as an area with specific characteristics to accommodate the needs of the global business and financial services industry. Purbaya expressed hope that the deliberation of the PFII Bill with the DPR would proceed constructively to produce a legal foundation capable of addressing Indonesia’s future economic development needs. “The government hopes that the deliberation of the PFII Bill will result in regulations that can meet Indonesia’s future economic development needs while still observing the mandate of the Financial Sector Development and Strengthening Law,” Purbaya concluded.