Purbaya: PFII location not yet determined, will not be inside a Special Economic Zone

Finance Minister Purbaya Yudhi Sadewa has stated that the location for the Indonesia International Financial Centre (PFII) has not yet been determined. However, he confirmed that the location will not be within a Special Economic Zone (KEK) because the government wants to avoid overlapping statuses. “KEK is not included, they say. But it depends on which proposal is the best. If there is a KEK, it can be dissolved, so it is not an obstacle. Basically, we will see what is best. What is clear is that the infrastructure must be easy to build or already partially in place, and the location must be attractive for wealthy foreign investors to come,” Purbaya said during the July 2026 APBN KiTa press conference in Jakarta on Tuesday.

Purbaya explained that according to the PFII Law, the authority to determine the location lies with the Minister of Finance, but the decision will be made after a team assesses the various proposals received. “There are several proposed names, such as North Bali, Kura-Kura, and Sanur. But the clear proposals are not yet available. We will see which one is the most reasonable, the quickest to implement, and the cheapest for the state. The one that can attract the most foreign investors or wealthy individuals to place their money there, that is what we will choose,” he said.

Meanwhile, Deputy Chairman of Commission XI of the Indonesian House of Representatives, Mohamad Hekal, stated that the determination of the PFII location will be made through a Government Regulation based on a proposal from the Minister of Finance to the President. “The PFII area will be proposed by the Minister of Finance to the President, and then it will be established in the form of a Government Regulation,” Hekal said when met by journalists at the Parliament Complex in Jakarta.

Hekal explained that parties wishing to propose an area as a PFII location must submit a proposal to the Minister of Finance. The proposal will then be reviewed based on several requirements, including regional feasibility, feasibility study results, capital adequacy, and human resource readiness. If all requirements are deemed to have been met, the Minister of Finance will propose the location to the President to be established through a Government Regulation. He added that the government is currently reviewing several candidate areas for the PFII location. Bali is one of the regions being considered, with two to three areas on the island currently under evaluation, although the possibility of other proposed areas remains open. Bali is considered attractive to global investors as it is already one of the main destinations for foreign nationals visiting Indonesia. “The hope is that they are here, their money follows, and the investment opportunity is right in front of them (through the existence of PFII). So it is not too difficult for them to come and go,” Hekal said.