SEZs Prepared as Location for Indonesia's International Financial Centre

The government is considering Special Economic Zones (SEZs) as the location for Indonesia’s International Financial Centre (IFC). This option is deemed the most efficient approach as the necessary infrastructure and various incentives are already available within these zones.

Susiwijono Moegiarso, Secretary to the Coordinating Ministry for Economic Affairs, stated that while the IFC is a specific programme distinct from SEZs, the two can be complementary. “If it is area-based, whereas the IFC is a specific programme, it will be easier if the position is located within a Special Economic Zone,” Susiwijono said in Jakarta on Monday (6/7/2026).

According to him, the government is still assessing the exact location for the IFC. However, operational SEZs are considered the most prepared due to their existing facilities and investor incentives. These incentives include tax holidays, customs duty exemptions, import and export tax facilities, and eased regulations regarding the use of foreign labour, all of which are regulated under existing laws and government regulations.

Susiwijono noted that the government is racing against time, as Law Number 4 of 2026 on the Development and Strengthening of the Financial Sector (P2SK) mandates the creation of IFC regulations within three months. “If we want speed, the most appropriate implementation would be within a Special Economic Zone. The programme will stand independently, but its location will be within an SEZ,” he added.

Furthermore, the government continues to strengthen the role of SEZs as new investment hubs. One such initiative includes a collaboration between the Singhasari SEZ and the Indian Institute of Management (IIM) Bangalore to develop international-standard management education in Indonesia.

Susiwijono stated that the development of SEZs is no longer solely focused on industrial zones, but also encompasses education, technology, innovation, and talent development to support the national target of eight per cent economic growth.