Welcoming a Global Financial Centre to the Island of the Gods
The world is now moving towards a green economy and sustainable investment. Bali has a great opportunity to become an example of how economic modernisation can go hand in hand with the preservation of culture and the environment.
Jakarta (ANTARA) - Amid global economic slowdown, trade wars, and increasingly aggressive competition for global investment, Indonesia is beginning to realise one important thing: the strength of the future economy is no longer determined solely by the wealth of natural resources, but also by a country’s ability to become a centre for global capital flows, investment, and financial services.
It is this awareness that now underpins the birth of the grand idea to turn the Kura Kura Bali Special Economic Zone into the Indonesia Financial Centre or a new international financial hub in Asia.
This idea did not emerge suddenly. For years, Indonesia has more often been a market for global investment flows rather than a centre for managing them. Many investment transactions by national companies, international fund management, and even Indonesian corporate treasury activities are still conducted through Singapore or Hong Kong.
Yet, Indonesia is the largest economy in Southeast Asia with a population of more than 280 million people. The national gross domestic product value has even surpassed more than US$1.4 trillion based on World Bank and IMF data in recent years.
This situation places Indonesia in a position full of opportunities as well as challenges. On one hand, Indonesia becomes a magnet for markets and investment destinations thanks to its large domestic economy. On the other hand, the added value from the global financial services sector is still more enjoyed by other countries.
Therefore, the government is starting to encourage the development of economic zones that can not only attract international investment but also serve as a centre for modern financial services and global capital flow management.
This momentum is further strengthened after the government issued Government Regulation No. 23 of 2023, which designates a 498-hectare area on Serangan Island as a Special Economic Zone based on tourism and the creative industry. In line with global economic dynamics, the development direction of the zone has then been expanded to become an international financial centre with a targeted investment of Rp104.4 trillion.
The choice of Bali as the location for the Indonesia Financial Centre also carries a strong message. For decades, Bali has been known as the face of Indonesian tourism to the world. Before the pandemic, millions of foreign tourists visited the Island of the Gods every year, making it one of the most famous global destinations in Asia.
It is this international reputation that is now to be transformed into a new economic strength based on investment, technology, and modern financial services. Bali is no longer just positioned as a tourism centre, but is also expected to develop into a gateway for global capital and business flows into Indonesia.