Indonesia Passes International Financial Centre Law to Attract Global Conglomerate Funds
The Bill on the Indonesian International Financial Centre (PFII) has been officially passed into law during the 26th Plenary Session of the Indonesian House of Representatives (DPR RI) for the 2025-2026 Session Year. The law provides the legal foundation for establishing the PFII, which the government targets to attract global-scale investment from the world’s conglomerates and deepen the national financial sector.
House Speaker Puan Maharani asked all factions for approval to ratify the bill, which was granted unanimously and sealed with a gavel strike. Deputy Chairman of Commission XI Mohamad Hekal explained that deliberations began on 2 July 2026 through a working meeting between the commission and the government, followed by further meetings including a working committee session. On 20 July 2026, Commission XI and the government held a working meeting for first-level decision-making, where all factions agreed to advance the bill to the plenary session for final approval.
Finance Minister Purbaya Yudhi Sadewa previously stated that the PFII could deepen financial markets, encourage diversification of instruments and financing sources, boost investment, and strengthen Indonesia’s position in the global financial ecosystem. The law includes specific provisions for business activities within the PFII, such as the use of foreign currencies, the use of English, and residency arrangements. Other special facilities include golden visas, immigration, employment, and licensing.
Hekal noted that approximately US$3.2 trillion in assets belonging to wealthy families worldwide is currently placed in various international financial centres, with an estimated 65 percent seeking new locations due to global turmoil affecting traditional investment destinations. He warned that delays in establishing the PFII could allow other countries to seize the opportunity, citing Vietnam and Uzbekistan as competitors also developing international financial centres. Bali is planned as the PFII location, with Hekal observing that many foreign nationals already reside on the island but have not fully invested their capital in Indonesia, expressing hope that the centre will encourage them to bring their money along with their presence.