Indonesia to Offer 50-Year Zero Percent Tax Incentive in New Financial Hub

The Indonesian House of Representatives (DPR) and the government are currently drafting a bill on the Indonesian International Financial Centre (PFII). Mukhamad Misbakhun, Chair of Commission XI of the DPR, confirmed that the PFII will facilitate all types of businesses, including investment banks and family offices, to attract capital parked overseas.

Speaking at the 2026 Investment Forum, Misbakhun revealed that the government plans to offer a 0% tax rate for 50 years within the PFII. While he personally believes the tax exemption should be permanent, he considers the 50-year proposal acceptable. He emphasised that this incentive presents a significant opportunity for state-owned banks, known as Himbara, to establish investment banks, as well as for insurance and pension funds to contribute to the national economy.

Deputy Governor of Bank Indonesia, Destry Damayanti, expressed the central bank’s support for the plan. She described the PFII as a long-term strategy to attract foreign investment and boost investor confidence in Indonesia’s economic turnover, noting that while the financial centre will have a regional impact, its real-sector investments will benefit the entire country.