Investment Funds in Financial Centre Can Finance Strategic Projects

Finance Minister Purbaya Yudhi Sadewa is optimistic that the establishment of a financial centre will attract substantial investment to Indonesia. Purbaya explained that investment funds managed through the financial centre could be used to finance various strategic projects. According to him, investors will place their funds in projects that offer attractive returns. “This money enters the financial centre, and it must be circulated. The financial centre will decide where to invest. We hope they can enter attractive domestic projects,” he said on Friday (3/7/2026). Purbaya believes there are several strategic projects that will attract the interest of investors in the financial centre, including those originating from Danantara. Beyond investing in assets, he noted that the financial centre, as the investment fund manager, could also channel funds to purchase bonds issued by the government, the central bank, or Danantara. “So, attractive projects will be offered to them. I see some Danantara projects are interesting, but there are other non-Danantara projects that are also interesting. They can enter Danantara projects or also buy government bonds,” Purbaya stated. If investors actively purchase bonds, the government will receive funds from the bond sales. This money can then be used by the government for various needs, including financing the state budget and maturing debt. “If we issue bonds, they [investors] can buy them. I think that way, my financing sources will be more complete. So investors from America, Japan, Australia, and China will come here, making us stronger in terms of financing,” Purbaya said. The International Financial Centre Bill is being drafted to support the operation of a financial centre in Indonesia. The drafting is a follow-up to Article 248A of Law 4/2026, which mandates the formation of a bill regarding the financial centre within three months of the law’s enactment. The government and the House of Representatives are targeting the completion of the bill by 21 July 2026, so it can be passed before the recess period. The bill will include various facilities related to immigration, residency, employment, licensing, and taxation to encourage the development of modern financial activities. The financial centre will also have its own court authorised to examine, hear, and decide disputes related to business activities within the centre. To attract investors, the government will also regulate special tax incentives for activities within the financial centre area.