Prabowo to Build PFII, Positioning Jakarta as Global Capital Gateway
President Prabowo Subianto has announced the government will commence development of the Indonesian International Financial Centre (PFII) in Jakarta, before expanding it to Bali and potentially other regions. The PFII is designed as an international-standard financial ecosystem that not only attracts global capital but also brings wealth management, investment, financial technology, arbitration, commercial dispute resolution, and world-class financial talent to Indonesia.
The announcement was made during the government’s statement on the 2027 State Budget Bill at the Parliament Complex in Senayan, Jakarta, on Friday (14/08/2026). In his speech, the President outlined the next steps in economic transformation, including optimising state-owned enterprise assets, establishing a mineral and strategic commodity exchange, building a giant sea wall, expanding solar energy, and developing the PFII.
Within this context, the PFII is positioned as an instrument to deepen the national financial sector and enhance Indonesia’s capacity to finance development using long-term capital. The government wants economic activities based on Indonesian assets, projects, and wealth to be increasingly financed, managed, and transacted domestically.
Prabowo stated that Jakarta will be the initial location for the PFII. Once the ecosystem develops, the government plans to expand the financial centre to Bali and does not rule out building similar zones in other areas attractive to international investors. “Initially, Jakarta and Bali must become places where the world’s capital is gathered and Indonesia’s future is financed,” Prabowo said.
The selection of Jakarta as the first phase has a strong economic basis. Jakarta and its surrounding areas are the primary hub for banking, capital markets, insurance companies, investment managers, fintech firms, national and multinational corporate headquarters, and Indonesia’s financial sector regulators. Bali subsequently offers a different character, possessing international connectivity and appeal that can support the development of activities such as family offices, investment management, global professional services, fintech, and international wealth management.
The government had previously prepared the legal foundation for the PFII. The House of Representatives (DPR) and the government completed deliberations on the PFII Bill in July 2026. The Ministry of Finance explained that the PFII implements the mandate of Article 248A of Law Number 4 of 2026 concerning amendments to the Financial Sector Development and Strengthening Law (P2SK). Its objectives include enhancing Indonesia’s competitiveness as an international financial centre, deepening the financial sector, attracting investment, and expanding long-term financing for the economy. The DPR subsequently approved the PFII Bill into law on 21 July 2026, describing the regulation as a foundation for strengthening Indonesia’s competitiveness in attracting investment and international financial activities into the country.
Prabowo depicted the PFII as far broader than merely a zone filled with banking buildings and investment company offices. The government intends to build a financial services ecosystem with institutionally, regulatory, legally, and service-wise competitive international standards. According to the President, activities that can be developed within the PFII include banking, insurance, capital markets, derivatives, carbon exchanges, bullion, fintech, Islamic finance, family offices, treasury centres, and investment management. This design indicates the government wants the PFII to fill various links in the financial industry chain. Funds can be gathered, managed, and invested; companies can seek financing; investors can trade financial instruments; while business disputes can be resolved within the same ecosystem.
The Ministry of Finance previously stated that the PFII is not intended to replace the existing national financial system but to complement it with a world-class financial ecosystem. The government places the PFII within three major frameworks: expanding access to capital and investment, strengthening financial innovation and governance, and enhancing national competitiveness and capacity. The PFII is also expected to open sources of financing for the real sector, national strategic projects, infrastructure, sustainable development, and climate financing.
One prominent aspect is the effort to create a commercial legal environment familiar to international business players. Prabowo said English can be used as the contract language in PFII activities. Indonesia is also opening room to adopt relevant commercial law principles and international standards so that global transactions do not face unnecessary barriers. The government is also preparing a distinct institutional architecture for the PFII. In the President’s speech, this structure includes, among others, a management body, a PFII financial services supervisory institution, and a court or dispute resolution mechanism connected to the Supreme Court. Prabowo even opened the possibility of bringing in the best legal talent, both from Indonesia and abroad, to strengthen the quality of dispute resolution. This element is crucial because an international financial centre essentially sells trust and certainty. Investors do not only compare the size of tax incentives but also calculate whether contracts can be enforced, disputes resolved quickly, and rulings have credibility. During the PFII deliberations, the DPR also stressed that the strength of the legal system, governance, and regulatory certainty are important parts of ensuring the centre’s success.