Purbaya: PFII Managed Funds Could Finance Danantara Projects

Finance Minister Purbaya Yudhi Sadewa has stated that investment funds managed through the International Financial Centre Indonesia (PFII) could become a source of financing for a number of domestic projects, including Danantara projects. Funds entering the PFII will be managed by market players and invested in various projects deemed potentially profitable on a business basis, rather than through government assignment. “This money goes there, to the financial centre (PFII). Later, it must certainly be circulated as well. The financial centre will then decide where to invest. We hope they can enter attractive domestic projects,” Purbaya said when met at the Parliament Complex, Jakarta, on Thursday. The Finance Minister emphasised that PFII investments will be entirely market-based. “These are definitely market-based projects, it is up to them, not forced. So attractive projects will be offered to them (PFII investors). For instance, if some Danantara projects are attractive, but there are also other non-Danantara projects that are attractive,” he said. Besides financing investment projects, Purbaya said funds managed through the PFII could also become a source of budget financing through the purchase of Government Securities (SBN). “It can also be used to pay government debt. If we issue bonds (SBN), they can buy bonds. So my funding sources will become more complete. So America, Japan, Australia, China, and later from here. Thus, we will be stronger in terms of financing,” the Finance Minister added. However, the rules regarding the PFII are still in the early discussion stage. The Government, together with the Indonesian House of Representatives (DPR RI), is currently beginning to discuss the Draft Law (RUU) on the PFII. This regulation will serve as the legal foundation for establishing an international-standard financial centre expected to attract investment, strengthen the national financial sector, and enhance Indonesia’s competitiveness at the global level. During a Working Meeting with Commission XI of the DPR RI, Purbaya said the drafting of the PFII Bill is part of the government’s efforts to realise a stronger, more inclusive, sustainable, and globally competitive national economy. “This Draft Law is prepared as part of the government’s efforts to realise a stronger, more inclusive, sustainable, and globally competitive national economy, as reflected in the Astacita programme,” he said. According to him, Indonesia has significant capital to become a major player in the global financial ecosystem, ranging from the size of the national economy, the vast domestic market, a strategic geographical position, abundant natural resources, to long-term economic growth prospects. However, Indonesia has not yet had an international financial zone specifically designed with governance standards, legal certainty, institutions, and competitiveness on par with various global financial centres. Therefore, the government is proposing the establishment of the PFII as a zone with specificities to accommodate the needs of the global financial services industry while acting as a catalyst for deepening the national financial sector. “The establishment of the PFII is intended to enhance Indonesia’s competitiveness as an international financial centre, become a catalyst for deepening the national financial sector, developing financial sector innovation, increasing investment, facilitating real sector financing, national strategic projects, sustainable financing, as well as strengthening the financial sector’s contribution to Indonesia’s overall economic growth,” Purbaya said. He added that the drafting of the PFII Bill is also a mandate of Article 248A of Law Number 4 of 2026 concerning Amendments to Law Number 4 of 2023 on Financial Sector Development and Strengthening (PPSK), so the establishment of the PFII has a strong legal foundation as part of the national financial sector transformation agenda.