House Committee Finalises Draft Bill for Indonesia International Financial Centre
The Working Committee for the Indonesia International Financial Centre (PFII) Bill has completed its discussion of the draft regulation. The bill’s text was subsequently agreed upon between the government and the House of Representatives (DPR) in a meeting on Monday, 20 July 2026, and will be ratified in a plenary session.
Deputy Chairman of Commission XI from the Gerindra Faction and Chairman of the PFII Bill Working Committee, Mohamad Hekal, reported that the series of discussions had been carried out from 8 to 16 July 2026. The working committee then finalised the results of the formulation and synchronisation on 19-20 July 2026.
The working committee received 503 Problem Inventory Lists (DIM) from various factions within the DPR’s financial commission. ‘Based on the results of the working committee, as well as the formulation and synchronisation teams, a draft law on the PFI has been compiled, systematically structured into 10 chapters and 73 articles,’ Hekal stated during the meeting between the DPR and the government in Senayan, Jakarta, on Monday, 20 July 2026.
Hekal explained several provisions regulated in the draft bill. Chapter 1 contains general provisions governing definitions and the principles of PFII operations. The second chapter regulates the status and objectives of the financial centre.
The third chapter governs business activities within the financial centre, including financial sector business activities, supporting financial sector business activities, and other sector business activities.
The institutional framework of the Indonesia International Financial Centre is regulated in Chapter 4. It includes the delegation of management authority from the president to the PFII governor in forming an advisory board. This chapter also regulates the appointment and dismissal of the board, as well as its duties and authorities.
Chapter 5 regulates an arbitration institution that provides alternative dispute resolution within the PFII. The subsequent chapter also includes provisions for the PFII court, including a special court.
Chapter 7 regulates central and regional government support for the centre’s operations. The next chapter regulates special facilities or incentives, including taxation and its forms, such as income tax, value-added tax, sales tax on luxury goods, and customs.
According to Hekal, the ninth chapter regulates specificities of the PFII, namely the language and law used, as well as permits for the use of foreign currency and financial transactions within the financial centre.
The final chapter contains closing provisions related to the exclusion of the application of laws and regulations mandated by the PFII Law, as well as the placement of the PFII Law in the State Gazette of the Republic of Indonesia.
As of the time of reporting, the government and DPR Commission XI were still in a meeting to hear mini-faction opinions and mini-opinions from government representatives. The bill is planned to be ratified in a DPR plenary session.