Indonesia's Financial Centre: Will It Follow Dubai or Singapore?
The Ministry of Finance has revealed that it has met with representatives from the Dubai International Financial Centre (DIFC) to gather input for the development of Indonesia’s International Financial Centre (PFII). Director General of the Ministry of Finance, Herman Saheruddin, stated that the government is deliberately studying the experiences of various global financial centres, including DIFC, to ensure the regulations being drafted can be effectively implemented in Indonesia. “This is a new thing in Indonesia, so we need to be meticulous. The key is that we want it to be workable once it is established,” Herman said following a working committee meeting on the PFII Bill with Commission XI of the Indonesian House of Representatives on Tuesday (14/7/2026).
Herman noted that global financial centres vary in form, with some being pure financial centres and others operating as financial hubs. For Indonesia, he hopes the final form will be distinct, leveraging the country’s abundant resources. “The idea is that it won’t just be an ordinary financial centre, but a place where financing opportunities from abroad for domestic projects are opened up,” he explained. The centre is envisioned as a gateway for financing strategic projects within the country, addressing the domestic saving-investment gap by allowing global investors to fund Indonesian development directly through the hub.
Finance Minister Purbaya Yudhi Sadewa and his staff have already held meetings with DIFC representatives, with further discussions planned with the centre’s former CEO. The government is seeking meaningful participation and detailed input on the structure and decision-making processes of the financial centre. Meanwhile, the State-Owned Enterprises Supervisory Board (BP BUMN) has explicitly cited Dubai as the benchmark for the PFII’s development, highlighting its 0% corporate tax incentive for 40 years and its status as the “Wall Street of MEASA” (Middle East, Africa, and South Asia).
To support the initiative, Danantara’s Chief Operating Officer, Dony Oskaria, and Chief Investment Officer, Pandu Sjahrir, recently held a meeting to discuss investment strategy readiness and the development of a global-standard financial ecosystem. The government hopes the PFII in Bali will become a magnet for international investment, strengthen Indonesia’s competitiveness, and unlock sustainable economic growth opportunities.