HIPMI: Indonesia's International Financial Centre to Create Multiplier Effect for Communities
The ripple effects will not stop at financial transaction desks, but extend to the creation of quality jobs, technology transfer, and the strengthening of national infrastructure.
Jakarta (ANTARA) - The Chairman of the Central Board of the Indonesian Young Entrepreneurs Association (BPP HIPMI), Jona Prasetyo, believes the Indonesian International Financial Centre (PFII) can create a multiplier effect for communities in the surrounding area.
This will be reflected in the creation of quality jobs, technology transfer, and the strengthening of national infrastructure.
“The ripple effects will not stop at financial transaction desks, but will lead to the creation of quality jobs, technology transfer, and stronger national infrastructure,” said Ade Jona in Jakarta on Friday.
Therefore, the PFII is not merely offering incentives, but is designed as a bridge between global capital and national development needs.
The government is actively attracting global investment flows to strengthen national economic growth, one of which is through the development of the PFII. With a competitive incentive scheme, the PFII is positioned as a new financial district and an instrument to bolster Indonesia’s competitiveness amid the map of international financial centres.
According to Ade, the presence of this financial centre is considered a breakthrough in broadening Indonesia’s financing base, especially as competition between countries to attract capital, talent, and global financial services activities intensifies.
“Indonesia’s move to establish the PFII in Bali is a bold breakthrough to position Indonesia on the global financial map. The incentives offered are competitive and on par with world financial hubs such as the Dubai International Financial Centre (DIFC) and Singapore,” he said.
A number of fiscal incentives and facilities for investors are set out in the Law on the Indonesian International Financial Centre, passed by the House of Representatives (DPR RI) in Jakarta on Tuesday (21/7). The regulation covers, among other things, the establishment and status of the PFII, business activities, arbitration institutions, tax facilities, and governance rules within the PFII area.
One of the main incentives highlighted is a 0 percent corporate income tax facility that can be granted for up to 50 years for certain business activities.
The PFII is designed to compete with the world’s major financial hubs, such as the Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM), Singapore, and Hong Kong, combining fiscal incentives, legal certainty, special facilities, and ease of doing business.
Despite offering tax incentives and various facilities, the government has ensured that PFII facilities will not apply automatically to all parties and will remain aligned with international tax commitments, including the Global Minimum Tax (GMT) provisions.
Ade views this approach as important to demonstrate that the PFII is not designed as a tax avoidance loophole, but as a competitive, credible financial ecosystem that remains compatible with global standards.
For the business community, the strategic value of the PFII lies in its ability to transform international capital flows into productive economic activity within the country.
“Ultimately, the success of the PFII will not only be measured by how large the incentives given are, but by how far this policy is able to create new investment, quality jobs, knowledge transfer, better infrastructure, and economic benefits that are felt by the Indonesian people,” he said.