House Agrees to Deliberate International Financial Centre Bill, Targets Completion in Three Months

The Indonesian House of Representatives (DPR) has officially agreed to deliberate the government’s proposed bill on the Indonesia International Financial Centre (PFII), paving the way for its swift enactment. This decision follows a direct mandate from the Law on Financial Sector Development and Strengthening (UU P2SK). Bob Hasan, Chairman of the DPR Legislation Body (Baleg), stated that the establishment of the PFII is a legal order under the P2SK Law, leaving the DPR with no option but to proceed through the applicable legislative mechanism. “We cannot refute this because it is a command of the P2SK Law. The law instructs that a separate law on the international financial centre must be drafted,” Hasan said during a working meeting with the Minister of State Secretary and the Minister of Law and Human Rights on Tuesday (23/6/2026). He noted that substantive debates remain open once the government submits the academic paper and draft bill, allowing factions to express their views or objections. Hasan warned that obstructing the process would mean the DPR is ignoring a statutory mandate, potentially violating the law itself. “If we disagree today, each faction can prepare to voice that disagreement during the substantive discussion. We cannot defy what the law commands. In fact, if we hinder it, we are breaking the law,” he stressed. Deputy Chairman of Baleg from the Nasdem faction, Martin Manurung, expressed support but emphasised the need to anticipate public response during the drafting process to avoid post-enactment controversy. He argued that transparency is vital for maintaining institutional credibility and global trust in Indonesia. Meanwhile, Deputy Chairman from the Golkar faction, Ahmad Doli Kurnia, highlighted the importance of administrative order in the submission process to prevent future legal issues. Deputy Minister of Law, Eddy Hiariej, explained that the bill’s legal basis is Article 248A of Law No. 4/2026, an amendment to the P2SK Law, which mandates a separate law to regulate the financial centre. He revealed a tight deadline: the law must be enacted within three months of the P2SK Law’s promulgation on 17 June 2026. Since the PFII bill was not included in the 2026 Priority National Legislation Programme (Prolegnas), the government is using a ‘specific circumstances’ provision to submit it outside the regular programme. Eddy outlined five key urgencies: enhancing Indonesia’s competitiveness as an international financial hub, deepening domestic financial sector innovation, attracting national and international investment, facilitating financing for real sectors and strategic projects, and strengthening the financial sector’s contribution to the national economy. Baleg Chairman Bob Hasan confirmed that this urgency legitimises the bill’s inclusion in the 2026 Priority Prolegnas to ensure the legislative process adheres to legal provisions.