PFII to Fund Strategic Projects, Not Just Danantara, Says Minister Purbaya
The government, through the Ministry of Finance and House of Representatives (DPR RI) Commission XI, has officially begun deliberating the Bill on the International Financial Centre (IFC), or Pusat Finansial Internasional Indonesia (PFII). The PFII is designed to finance strategic projects in Indonesia. The bill’s introduction fulfils the mandate of Article 248A of Law No. 4 of 2026, amending Law No. 4 of 2023 on Financial Sector Development and Strengthening (P2SK).
Finance Minister Purbaya Yudhi Sadewa stated that establishing the PFII is part of the government’s effort to realise a stronger, more inclusive, sustainable, and globally competitive national economy, as mandated by the Asta Cita programme. “The establishment of the PFII is intended to enhance Indonesia’s competitiveness as an international financial centre. The PFII is expected to be a catalyst for deepening the national financial sector, developing financial service innovation, increasing investment, facilitating financing for priority sectors and national strategic projects, sustainable financing, and strengthening the financial sector’s contribution to Indonesia’s economic growth,” Purbaya said during a meeting with DPR Commission XI in Jakarta on Thursday.
Purbaya explained that global economic developments show international financial centres have become important instruments for many countries in attracting investment, expanding financing access, accelerating financial service innovation, and strengthening their position in the global economic value chain. The existence of an international financial centre also allows for more efficient global capital mobilisation and creates high-value-added jobs. “Indonesia has a very strong foundation to take a greater role in the global financial ecosystem. The large national economy, vast domestic market, strategic geographical position, natural resource wealth, and long-term economic growth prospects are strong foundations for developing international-standard financial activity centres,” Purbaya continued.
However, Indonesia does not yet have an international financial zone specifically designed with governance, institutional, legal certainty, and competitiveness standards on par with other global financial centres. On this basis, the government sees the need to form the PFII as a zone with specific characteristics to accommodate the needs of global businesses and the financial services industry. “We propose the establishment of institutions that carry out functions of administration, management, supervision, and dispute resolution. All these institutions are designed based on the principles of professionalism, independence, transparency, and accountability while maintaining close coordination with the government,” he explained.
When asked by reporters after the meeting, Purbaya said the PFII would finance strategic projects with funding that investors can revolve. “Strategic projects, but the money will enter the financial centre, and it will certainly have to be revolved there. Investors will determine where they want to invest,” Purbaya said. He explained that these strategic projects could be from Danantara or outside Danantara, as long as the projects are valuable and beneficial to the public. “This is a market-based project, so it is up to the investors. They will be offered attractive projects,” Purbaya said.
In addition to providing space for the development of modern, international-standard financial products and services, the PFII Bill also regulates various business conveniences to increase investment attractiveness. These facilities include immigration, employment, residency, and licensing conveniences, as well as carefully designed incentives to attract long-term investment and encourage high-value-added economic activities. In terms of legal certainty, the government proposes establishing a PFII Court with special authority to examine, adjudicate, and decide disputes related to business activities in the PFII zone and international commercial disputes connected to the zone. “The presence of a fast, professional, and credible dispute resolution mechanism is expected to further increase investor confidence in Indonesia as a global investment destination,” Purbaya stated.
The bill also opens space for the application of international best practices through the adoption or adaptation of international commercial law principles and global standards proven to increase efficiency and certainty in international business activities. Purbaya emphasised that this policy is not intended to reduce national legal sovereignty but rather to strengthen Indonesia’s competitiveness in attracting global investment and economic activity. The drafting of these provisions was also carried out through dialogue and coordination with the Supreme Court. “We believe the benefits of establishing the PFII will be felt widely, not only by business actors in the zone but also by the national economy through increased investment, job creation, knowledge and technology transfer, human resource development, and strengthening Indonesia’s competitiveness at the global level,” he concluded. Purbaya hopes the deliberation of the PFII Bill can proceed constructively with the DPR RI to produce a legal foundation capable of meeting Indonesia’s future economic development needs.