Indonesia Rolls Out Red Carpet for Foreign Investors via PFII

The government will establish the Indonesian International Financial Centre (PFII). The PFII Bill is currently under discussion between the government and the House of Representatives (DPR). Discussions are targeted to conclude before the current sitting period ends on 22 July 2026. Chairman of Commission XI of the DPR, Mukhamad Misbakhun, stated that the PFII aims not only to strengthen the national financial sector but also to attract foreign investment flows into Indonesia. According to Misbakhun, the special zone will offer various incentives that have long been the appeal of international financial centres. Misbakhun explained that the PFII will feature a number of exemptions, ranging from taxation and financial sector supervisory systems to company registration mechanisms. The zone is also designed to use a common law legal system, differing from the civil law system generally applied in Indonesia. He stated that both foreign and domestic investors will be able to establish various types of businesses within the PFII zone, including banking, insurance, pension funds, venture capital, securities, and other financial asset management. The incoming funds are expected not only to flow into the financial sector but also to support real-sector projects domestically. Once the bill is passed into law, President Prabowo Subianto is scheduled to officially present the PFII to the public. Misbakhun said the PFII is being formed so that Indonesia can compete with international financial centres in other countries, such as those in Malaysia and Dubai. He argued that Indonesia must have its own added value to attract global investors.