INDEF says special facilities can attract foreign investors to PFII

Executive Director of the Institute for Development of Economics and Finance (INDEF) Esther Sri Astuti has said that special facilities for foreign investors must be provided to attract them to enter and invest in the Indonesia International Financial Centre (PFII).

“Deepening the financial market in Indonesia. Increasing domestic liquidity, instrument variety, and strengthening regional competitiveness against other financial centres,” Esther said when contacted in Jakarta on Tuesday.

According to her, to attract investors the government needs to provide special facilities for them, so that they are interested and willing to invest in the PFII.

She explained that the PFII must be able to compete with other long-established financial centres, and for that the government can provide ease of investment, tax relief, and legal certainty.

“Special facilities and tax relief are designed to entice foreign funds and investment managers to enter Indonesia,” she said.

She added that Indonesia’s potential must be presented well, so as to attract as many investors from abroad as possible.

Esther explained that the green economy, Islamic economy and national industrial transformation can be used as one of the attractions for investors.

Previously, Minister of Investment and Downstreaming/Head of BKPM Rosan Roeslani said the response of investors and family office managers from Asia whom his side met regarding the development of the Indonesia International Financial Centre (PFII) had so far been positive.

He said the meeting with investors and family offices was held in Nusa Dua, Bali. His side invited 70 parties from Asia, while 110 attended.

“We invited 70 from Asia but 110 came and the response, thank God, I can say was actually very positive,” Rosan said at a press conference on the 2027 State Budget Plan and Financial Note in Jakarta on Friday (14/8).

Nevertheless, he said the investors and family offices want to see a PFII structure and format that conforms to world standards.