Rosan: PFII Must Be Independent and Meet Global Standards

Investment and Downstreaming Minister/Head of BKPM Rosan Roeslani has emphasised that the Indonesia International Financial Centre (PFII) must be built on the principle of independence and follow global standards. This is considered important for building credibility and trust among investors and family offices towards the international financial centre being prepared by the government.

“But in essence, everything about the PFII must be independent. So in terms of its management, it must certainly be independent, then its judiciary as well, although it still cooperates with the Supreme Court, the stages must also be independent. Then the OJK is also an independent OJK,” Rosan said at a press conference in Jakarta recently.

According to Rosan, the principle of independence must be applied from management to the judicial aspects of the PFII. Meanwhile, the supervisory function of the Financial Services Authority (OJK) must also continue to operate independently.

Rosan said the PFII already has a legal basis in the Financial Sector Development and Strengthening Law (P2SK). For the initial stage, the government is preparing the PFII in Jakarta and Bali.

“Regarding the PFII, thank you also for the initiative of the Finance Minister and the Coordinating Minister for Economic Affairs, it is already in the P2SK Law. For now, so that this can run, the plan is to have it in Jakarta first, then in Bali,” said Rosan.

Rosan, who is also CEO of Danantara Indonesia, explained that preparations for the PFII are being carried out together with Finance Minister Purbaya Yudhi Sadewa. In this process, Danantara plays a role in developing supporting infrastructure, such as buildings and other facilities.

According to Rosan, the development of PFII infrastructure requires careful planning so that the financial centre is able to gain the trust of investors and family offices.

“This certainly requires good, mature planning, so that the existence of this PFII truly gains the trust of investors and family offices,” he said.

Rosan said the government is currently still focused on approaching investors and family offices from the Asian region. This outreach has not yet been expanded to Europe and the Middle East, although the government sees great potential from the Middle East region, particularly Dubai.

“We are still, for now, focusing on this first, because what we have met so far are only investors or family offices from Asia, not yet from Europe, not yet from the Middle East. There is indeed great potential, many from Dubai who want this, who actually want to possibly be with us as well,” said Rosan.

He acknowledged that the potential funds expected to enter through the PFII will mostly come from family offices. The government has also received input from the Dubai International Financial Centre (DIFC), especially regarding the management framework which is considered good.

“Yes, the plan is that most will be family offices, and if we look at it, we have also received a lot of input from the DIFC, the Dubai International Financial Centre, because their framework is also very good,” he said.

Rosan revealed that the government had previously held a meeting with investors and family offices in Bali. The event initially invited around 70 participants from Asia, but the number who attended reached 110 people. According to him, this provides a picture of the positive response from investors and family offices towards the plan to establish the PFII.

Nevertheless, Rosan said prospective investors and family offices still want to ensure that the structure and format of the PFII are in line with global standards. Therefore, the government will conduct regular and continuous outreach.

“But of course they also want to see that the structure and format of this PFII truly conforms to global standards, and therefore we will conduct regular and continuous outreach,” Rosan continued.

Rosan also invited the government, industry players, academics, the public, and the media to keep discussions about the PFII conducive and positive so that it can have a major impact on the Indonesian people.