House Commission XI Targets PFII Bill for Plenary Session on 21 July

Commission XI of the Indonesian House of Representatives (DPR RI) has approved advancing the discussion of the International Financial Centre Indonesia (PFII) Bill to the Working Committee level, with the aim of finalising it and securing approval from all factions during the Level II Deliberation or Plenary Session on 21 July 2026. The bill is also targeted for enactment within three months, specifically between June and August 2026. “This means the day before, on 20 July, we will have the Level I approval, and the details regarding who will be invited for meaningful public participation will be determined at the Working Committee meeting. So, I am conveying that by 21 July, there must be something approved at Level II,” said Commission XI Chairman Mukhamad Misbakhun during a working meeting with the government at the Parliament Complex in Jakarta on Thursday. During the meeting, Commission XI accepted the academic paper and the draft of the PFII Bill for further study and discussion in the Working Committee meeting. The government and the DPR have begun discussing the PFII Bill as the legal foundation for establishing an international-standard financial centre in Indonesia. The government considers this regulation a strategic step to attract investment, strengthen the national financial sector, and enhance Indonesia’s competitiveness globally. Finance Minister Purbaya Yudhi Sadewa stated that the drafting of the bill is part of efforts to realise a national economy that is stronger, more inclusive, sustainable, and globally competitive. “This Bill is drafted as part of the government’s efforts to realise a national economy that is stronger, more inclusive, sustainable, and globally competitive, as reflected in the Asta Cita programme,” Purbaya said. The Finance Minister explained that Indonesia possesses strong capital to play a larger role in the global financial ecosystem, owing to its large national economy, vast domestic market, strategic geographical position, abundant natural resources, and promising long-term economic growth prospects. However, to date, Indonesia has not had an international financial district specifically designed with governance standards, legal certainty, institutions, and competitiveness on par with various international financial centres worldwide. On this basis, the government proposed the establishment of the PFII as a special zone to accommodate the needs of the global financial services industry while acting as a catalyst for deepening the national financial sector. “The establishment of the PFII is intended to enhance Indonesia’s competitiveness as an international financial centre, serve as a catalyst for deepening the national financial sector, develop financial sector innovation, increase investment, facilitate real sector financing, support national strategic projects and sustainable financing, and strengthen the financial sector’s overall contribution to Indonesia’s economic growth,” the Finance Minister stated. The Finance Minister added that the drafting of the PFII Bill is also mandated by Article 248A of Law Number 4 of 2026 concerning Amendments to Law Number 4 of 2023 on Financial Sector Development and Strengthening, providing a strong legal basis for the PFII’s establishment as part of the national financial sector transformation agenda. Therefore, the government hopes the discussion of the PFII Bill with the DPR RI can proceed constructively to produce a robust legal foundation for building an Indonesian international financial centre that is globally competitive, based on good governance, possesses legal certainty, and continues to uphold the sovereignty of the Unitary State of the Republic of Indonesia.