President to Directly Appoint Governor of Indonesia's New Financial Hub

Indonesia now has a legal foundation for the Indonesia International Financial Centre (PFII) after the PFII Bill was officially passed into law during a plenary session of the House of Representatives (DPR) on Tuesday, 21 July 2026. The management body of the financial centre will be led by a governor appointed directly by President Prabowo Subianto. Mohamad Hekal, Deputy Chairman of Commission XI from the Gerindra Party faction and Chairman of the PFII Bill Working Committee, stated that no candidates have been proposed yet for the leadership of the financial centre. “There are no candidates at all yet; that will be determined later by the President,” he said after the plenary session at the Parliament Complex in Senayan, Jakarta, on Tuesday, 21 July 2026. According to Hekal, the President has full authority to appoint the governor without needing a fit and proper test mechanism from the DPR. “It will be directly by the President,” he said. The PFII will have a special board led by a governor and a deputy governor. Under the board, there will be several PFII Management Bodies responsible for operational management. Additionally, a Financial Services Supervisory Authority will be established to oversee the financial sector and supporting services, along with a special court and an arbitration body within the zone. Hekal added that a PFII Advisory Board will be appointed to align policies inside and outside the special zone. The composition of the Advisory Board will be similar to the Financial System Stability Committee (KSSK) and does not rule out the involvement of other elements such as the Financial Transaction Reports and Analysis Centre (PPATK). Hekal could not yet confirm when the international financial zone will commence operations but expressed hope it would happen as soon as possible now that the legal basis has been enacted, allowing the board led by the governor to be established. The government is currently reviewing several location options for the financial centre. “I heard there are maybe two or three areas in Bali being considered, and this does not rule out the possibility of additions later,” he said. One of the main investors appointed for the development of the PFII is Danantara. As an initial investor, Danantara is collaborating with a team from the Dubai International Financial Centre (DIFC).