PFII Targets Foreign Funds, What About Local Investors?

The Ministry of Finance has revealed that the International Financial Centre Indonesia (PFII) will prioritise foreign direct investment (FDI) or foreign business entities in order to target more massive investment. Director General of Financial Sector Stability and Development at the Ministry of Finance, Herman Saheruddin, stated that foreign business entities or FDI will be given precedence, in accordance with applicable regulations, to attract as much foreign funding as possible. “So the licensing in the PFII will be more aimed at attracting foreign funds. The key is foreign investor funds,” Herman said when met by reporters at the Indonesian House of Representatives on Monday (20/7/2026). When asked whether domestic business entities or domestic direct investment (DDI) could also enter the PFII, he said they could, provided they meet special requirements. “DDI is possible, but there are several conditions that must be fulfilled. They must incorporate there. So they cannot just open a branch; they must be established there. There are conditions,” Herman continued. Herman explained that the establishment of the PFII is intended to ensure the government does not rely solely on domestic revenue, but can also draw from foreign investment funding. “Because if we only rely on domestic sources, the economy will just stay as it is. But from foreign sources, a lot can come in through portfolios in the capital market or financial market, where they might easily enter and exit. Through FDI, that is also possible. So we are providing a special zone that can attract more foreign investors,” he elaborated.