Indonesian Political, Business & Finance News

Investment Funds in Financial Centre Can Finance Strategic Projects

| | Source: NEWS.DDTC.CO.ID Translated from Indonesian | Finance
Investment Funds in Financial Centre Can Finance Strategic Projects
Image: NEWS.DDTC.CO.ID

JAKARTA, DDTCNews - Finance Minister Purbaya Yudhi Sadewa is optimistic that the formation of a financial centre will bring substantial investment into Indonesia.

Purbaya explained that investment funds managed through the financial centre could be used to finance various strategic projects. According to him, investors will allocate funds to projects that offer attractive returns.

“This is money flowing into the financial centre, which must then be circulated. The financial centre will determine where to invest. We hope they can enter attractive domestic projects,” he stated, as quoted on Friday (3/07/2026).

Purbaya believes there are several strategic projects that will attract interest from investors in the financial centre, including those originating from Danantara.

In addition to investing in assets, he noted that the financial centre, as an investment fund manager, could also channel funds to purchase debt securities issued by the government, the central bank, or Danantara.

“So, attractive projects will be offered to them. From my view, several Danantara projects are attractive, but there are other projects outside of Danantara that are also appealing. They could invest in Danantara projects, or also be used to pay off government debt,” said Purbaya.

If investors purchase bonds in large numbers, the government will obtain funds from the proceeds of those bond sales. This money can then be used by the government for various needs, including financing the state budget and managing maturing debt.

“If we issue bonds, they [investors] can buy them. I believe that will make my sources of financing more complete. Therefore, investors from the US, Japan, Australia, and China will come here, making us stronger in terms of financing,” Purbaya remarked.

For information, the Indonesian International Financial Centre Bill (RUU PFII) is being drafted to support the operation of a financial centre in Indonesia. The drafting of this Bill is a follow-up to Article 248A of Law 4/2026, which mandates the formation of a Bill regarding the management of a financial centre within three months of the enactment of Law 4/2026.

The Government, together with the House of Representatives (DPR), aims to complete the drafting of the PFII Bill by 21 July 2026 so that it can be passed before the recess period. The PFII Bill will include various immigration, residency, labour, licensing, and taxation facilities to encourage the development of modern financial business activities.

The financial centre will also have its own specialised court authorised to examine, adjudicate, and resolve disputes related to business activities within the PFII.

To attract investor interest, the government will also regulate specific tax incentives for business activities within the financial centre area.

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