Where Could Indonesia's New International Financial Center Be Based?
Where Could Indonesia’s New International Financial Center Be Based?
Reporter
July 21, 2026 | 10:43 pm
TEMPO.CO, Jakarta – Finance Minister Purbaya Yudhi Sadewa said Indonesia aims to begin operations of its planned Indonesian International Financial Center (PFII) this year, following the passage of the PFII Law by the House of Representatives.
Speaking after a state budget press conference at the Finance Ministry in Jakarta on Tuesday, July 21, 2026, Purbaya said the government is preparing the implementing government regulation needed to operationalize the new financial hub.
“The government regulation has not yet been drafted, but we will try to complete it as soon as possible. We are targeting operations to begin this year,” he said.
Purbaya said the current period of heightened global uncertainty presents an opportunity for Indonesia to establish an international financial center, arguing that demand for such hubs tends to rise during periods of market volatility.
“When uncertainty is high, demand for financial centers increases. If global conditions are calm, it would be more difficult for us to compete,” he said.
Potential Locations for Indonesia’s International Financial Center
Under the newly passed law, the finance minister has the authority to determine the location of the international financial center. However, Purbaya said no final decision has been made and the government is still reviewing several proposals.
Among the locations being considered are the Kura Kura Bali Special Economic Zone and the Sanur Special Economic Zone.
According to Purbaya, the government will select a site based on criteria including ease of development, existing infrastructure, implementation costs, and the potential to attract foreign investors.
“Essentially, we will choose the best option. The infrastructure must be easy to build or already partly available, and the location must be attractive to global investors with substantial capital,” he said.
Earlier, Deputy Chair of House Commission XI and head of the parliamentary working committee on the PFII bill, Mohamad Hekal, said the government is evaluating several potential sites in Bali.
“I heard there may be two or three locations in Bali currently under consideration, and it is possible that additional options could emerge later,” Hekal said.
The PFII initiative is part of Indonesia’s efforts to strengthen its position as a regional financial hub and attract greater international capital flows.
Read: What to Know About Indonesia’s 50-Year Income Tax Break
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