OJK Says PFII Will Strengthen Indonesia's Position in the Global Financial Ecosystem

The Financial Services Authority (OJK) has assessed that the plan to establish the International Financial Centre (PFII) will strengthen Indonesia’s position in the global financial ecosystem, whilst attracting investment and deepening the domestic financial market. In a virtual press conference followed in Jakarta on Tuesday, OJK Board of Commissioners Chairperson Friderica Widyasari Dewi said the OJK welcomes the government’s plan to establish the PFII as an effort to develop and strengthen the national financial sector. According to her, the entry of quality fresh funds into the PFII can provide benefits for the national economy. “However, of course, with due regard to the stability of the national financial system,” she said. She further stated that the draft law related to the PFII is currently still under discussion by the government, the House of Representatives (DPR), and stakeholders, including regarding the supervisory scheme for the financial centre. The DPR’s Commission XI has agreed to continue the discussion of the PFII Bill to the Working Committee level before being brought to the first-level approval on 20 July 2026, and is targeted to be passed in the DPR Plenary Session or second-level talks on 21 July 2026. The government and the DPR have begun discussing the PFII Bill as the legal foundation for establishing an international-standard financial centre in Indonesia. The regulation is considered a strategic step to attract investment, strengthen the national financial sector, enhance Indonesia’s competitiveness at the global level, and serve as a catalyst for deepening the national financial sector. The government also believes that Indonesia has strong capital to take a greater role in the global financial ecosystem through its large economy, vast domestic market, strategic geographical location, natural resource wealth, and long-term economic growth prospects. However, to date, Indonesia does not yet have an international financial area specifically designed with governance standards, legal certainty, institutions, and competitiveness on par with various international financial centres in the world. Finance Minister Purbaya Yudhi Sadewa said the government is preparing various facilities to attract investors to invest in the PFII, including ease of immigration, employment, residency, licensing, and taxation. The government is also proposing the establishment of a special PFII court to provide legal certainty for international business actors. According to Purbaya, the court will have the authority to examine, adjudicate, and decide disputes related to business activities in the PFII as well as international commercial disputes linked to the area. In the draft law, the PFII is designed as an area within the territory of the Unitary State of the Republic of Indonesia that is granted special status to support financial sector business activities, financial services support, and other economic activities that underpin the development of an international financial centre ecosystem.