SEZs Prepared as Location for Indonesia's International Financial Centre

The government is considering Special Economic Zones (SEZs) as the location for the Indonesian International Financial Centre (PFII) or International Financial Centre (IFC). This option is considered the quickest because the infrastructure and various incentives in SEZs are already available. Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, stated that the PFII is a special programme distinct from an SEZ, but the two can complement each other. “If this is area-based, whereas the IFC is a special programme, it will be easier if it is positioned within a special economic zone,” Susiwijono said in Jakarta on Monday (6/7/2026). According to him, the government is still reviewing the location for the PFII. However, SEZs that are already operational are considered the most ready because they already possess various facilities and incentives for investors. These incentives include tax holidays, import duty exemptions, import and export tax facilities, and eased use of foreign workers, all of which are regulated by law and government regulations. Susiwijono said the government is also racing against time. Law Number 4 of 2026 on Financial Sector Development and Strengthening (P2SK) mandates the establishment of PFII regulations within three months. “If we want to move quickly, the most appropriate implementation is within a special economic zone. The programme stands alone, but its location is in an SEZ,” he said. On the other hand, the government continues to strengthen the role of SEZs as new investment centres. One example is the cooperation between SEZ Singhasari and the Indian Institute of Management (IIM) Bangalore to develop international-standard management education in Indonesia. Susiwijono said SEZ development is now not only focused on industrial areas, but also on education, technology, innovation, and talent development to support the eight percent economic growth target.