Indonesia Plans New 'Dubai', Eyes Trillions from Global Wealthy

Indonesia is preparing a new step in the development of its national financial sector. The government, together with the House of Representatives (DPR), has begun discussing the formation of the Indonesian International Financial Centre (PFII), a financial hub to be developed in several regions across the country. The area is planned to become an international-scale financial centre similar to the Dubai International Financial Centre (DIFC) in the United Arab Emirates, with the goal of becoming a place for managing global funds, including from family offices owned by the world’s conglomerates and ultra-wealthy families. Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan is optimistic that establishing family offices in Indonesia could potentially attract foreign fund placements of up to US$500 billion, or approximately Rp8,900 trillion at an assumed exchange rate of Rp17,800 per US dollar. This figure is substantial, far exceeding Indonesia’s annual state budget (APBN). Consequently, the formation of the PFII is one of the government’s ambitious projects to position Indonesia not only as an investment destination but also as a global fund management centre. The PFII concept is not merely a regular business district. In its initial design, this financial centre will have financial and administrative independence, as well as certain legal specificities. This means financial activities within the zone can use standards closer to international practices, including in terms of regulation, dispute resolution, and tax treatment. Simply put, the PFII can be imagined as a hub for various international financial activities, including international banking, asset management, capital markets, insurance, reinsurance, fintech, special purpose vehicles (SPVs), wealth management, family offices, and strategic project financing. The legal basis for the formation of the PFII has been included in Law Number 4 of 2026 concerning amendments to the Financial Sector Development and Strengthening Law (UU P2SK). Article 248A of the law states the PFII is an instrument to encourage sustainable economic growth, deepen the financial sector, and diversify the national economy. The PFII Bill has been included in the 2026 Priority National Legislation Programme (Prolegnas). The DPR stated that the drafting of this bill is a mandate from the latest P2SK Law, and the implementing regulations must be established no later than three months after the law was enacted on 17 June 2026.