Indonesia Financial Centre to Become New Special Economic Zone in Bali

Coordinating Minister for Economic Affairs Airlangga Hartarto has revealed that the government is preparing a legal framework in the form of a law to serve as the operational basis for the area.

“We are currently discussing with parliament and hope it will not take too long to deliberate this law,” he told CNBC Indonesia during the Economic Update 2026 on Tuesday (30/6/2026).

The Indonesia Financial Centre (IFC) will be located in Bali and will become a new, standalone Special Economic Zone (KEK), separate from the existing KEK Kura-Kura Bali and KEK Sanur.

“From a locational perspective, the government, under the direction of the President, sees Bali as the region to be made a special economic zone for this financial centre,” Airlangga stated.

“It will not be one of the two existing zones, but rather a new location for the financial centre.”

Airlangga previously disclosed that the PFII is designed with competitive regulations offering highly attractive tax incentives, with the potential for rates as low as 0%, similar to global financial hubs like Dubai or Singapore.

He further estimated that the presence of the PFII could significantly boost incoming investment values to Indonesia.

“Currently, with traditional investment, we see around Rp2,200 trillion in a year. But compared to Singapore, they can attract investment related to their financial centre that multiplies many times over. Similarly in Dubai, their annual investment can reach US$800 billion,” he explained.

As of the first quarter of 2026, the Kura-Kura Bali KEK recorded an investment realisation of Rp1.62 trillion with a workforce absorption of 2,146 people. Meanwhile, the Sanur KEK recorded a cumulative investment realisation of Rp5.37 trillion, with 5,444 workers absorbed and 279,604 tourist visits.