Not OJK: This Is the Supervisor of the International Financial Centre (PFII)

The Indonesian International Financial Centre (PFII) will be supervised by a special Financial Services Supervisory Institution (LPJK), separate from the Financial Services Authority (OJK). Mukhamad Misbakhun, Chairman of Commission XI of the Indonesian House of Representatives (DPR), stated that this special economic zone will have a supervisory body in the form of an Advisory Board. This is because the zone will have specific regulations that are more relaxed than those in the rest of Indonesia. The PFII Advisory Board will consist of the Governor of Bank Indonesia, the Minister of Finance, the Chairman of the OJK, and the Chairman of the Indonesia Deposit Insurance Corporation (LPS). Misbakhun further noted that the PFII will offer conveniences in the financial system for foreign investors, including the use of foreign currencies, financial reporting in foreign languages, and ease of establishing businesses. The government and the DPR are currently formulating a special law, the Draft Law on the International Financial Centre (RUU PFII). The PFII can encompass all types of businesses, including investment banks and family offices. The centre also plans to offer a zero percent tax rate for 50 years. Misbakhun expressed his view that the tax exemption should ideally last indefinitely, but considered a 50-year period acceptable.