Incentives Planned for Indonesia's International Financial Hub
Minister of Finance Purbaya Yudhi Sadewa has stated that the government is preparing various facilities to attract investors to the International Financial Centre Indonesia (PFII). These facilities include ease of immigration, employment, residency, licensing, and taxation.
In addition, the government is proposing the establishment of a special PFII court to provide legal certainty for international business actors. “One of the most important elements in the success of an international financial centre is the availability of legal certainty and a dispute resolution mechanism that is fast, professional, and trusted by international business actors,” Purbaya said during a working meeting with Commission XI of the House of Representatives (DPR RI) at the Parliamentary Complex, Jakarta, on Thursday, 2 July 2026, as quoted by Antara.
The court will have the authority to examine, hear, and decide disputes related to business activities in the PFII as well as international commercial disputes connected to the area.
Purbaya explained that Indonesia has strong capital to play a larger role in the global financial ecosystem. This capital stems from the size of the national economy, the vast domestic market, a strategic geographical position, abundant natural resources, and 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 global financial centres.
Therefore, the government is proposing the establishment of the PFII as a special zone that can 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 increase Indonesia’s competitiveness as an international financial centre, become a catalyst for deepening the national financial sector, develop financial sector innovation, increase investment, facilitate real sector financing, support national strategic projects, promote sustainable financing, and strengthen the financial sector’s contribution to Indonesia’s overall economic growth,” Purbaya stated.
The state treasurer added that the drafting of the PFII Bill is mandated by Article 248A of Law Number 4 of 2026 concerning Amendments to Law Number 4 of 2023 on Financial Sector Development and Strengthening (PPSK).
Thus, the establishment of the PFII has a strong legal foundation as part of the national financial sector transformation agenda.
The PFII Bill is currently in the early stages of discussion. The deliberation is being expedited to be passed within three months, or by August 2026.
Under the bill, the PFII is designed as an area within the Unitary State of the Republic of Indonesia granted special status to support financial sector business activities, supporting financial services businesses, and other economic activities that bolster the development of an international financial centre ecosystem.