Himbara ready to connect global capital to Indonesia's international financial centre ecosystem

The Association of State-Owned Banks (Himbara) is ready to act as a gateway connecting global capital with investment opportunities in Indonesia through the planned International Financial Centre (PFII) ecosystem. This global capital includes foreign direct investment, institutional investors, sovereign wealth funds, and capital market flows. Eko Setyo Nugroho, Director of Institutional Affairs at PT Bank Negara Indonesia (Persero) Tbk, representing Himbara, stated that until now, most of these capital flows have been channelled through international financial centres outside Indonesia. Speaking during a hearing with the House of Representatives’ working committee on the PFII bill in Jakarta, he explained that through the PFII, Indonesia can build a more competitive financial ecosystem supported by adaptive regulation, attractive incentives, and international-standard financial infrastructure. He added that the ecosystem is expected to become the entry point for global capital to flow directly into Indonesia. Within this ecosystem, Himbara will serve as a gateway that not only connects global investors with national investment opportunities but also provides integrated financial solutions, builds strategic partnerships, and supports financing needs throughout the investment cycle. Eko noted that capital successfully gathered will then be channelled to various national priority sectors. He explained that Himbara has conducted benchmarking against several established international financial centres, including the Abu Dhabi Global Market, the Dubai International Financial Centre, and the hubs in Hong Kong and Singapore. From this benchmarking, Himbara learned that each IFC has a clear economic positioning and target. The success of an IFC is determined not only by competitive tax rates but also by regulatory certainty and operational ease. Furthermore, a strong and integrated regulator is crucial to provide legal certainty for market players while maintaining financial system stability. Himbara also observed that these international financial centres have evolved into integrated financial ecosystems, encompassing banking services, capital markets, wealth management, fintech, treasury, trade finance, and investment banking, allowing investors to access all necessary financial services within a single interconnected environment.