Why Is the Government Accelerating the Formation of the PFII?
The government is accelerating the establishment of the Indonesian International Financial Centre (PFII) to capitalise on the movement of global capital flows amidst world economic uncertainty. The international-standard financial services zone is expected to become a magnet for foreign investment, increase liquidity, and strengthen national development financing.
The move gained a legal basis after the House of Representatives (DPR RI) passed the Bill on the PFII into law during a plenary session on Tuesday (21/7/2026). The ratification was carried out after all factions and attending council members expressed their agreement.
Although it has been ratified, the PFII cannot yet commence operations. The government must still draft a number of implementing regulations, which are targeted for completion within six months.
Finance Minister Purbaya Yudhi Sadewa stated that the government hopes the PFII can begin operations as soon as possible, even striving for it to happen this year. According to him, the high level of global uncertainty actually increases the need for an international financial centre.
“We will see later, there are Government Regulations and various other things that have not yet been drafted. We expect the implementing regulations to take six months. We hope operations can start as soon as possible. We can try for this year. Because uncertainty is higher, that is where the demand for a financial centre increases,” Purbaya said during the APBN KiTA press conference at the Ministry of Finance Office on Tuesday (21/7/2026).
Purbaya emphasised that the development of the PFII will not be entirely financed through the State Revenue and Expenditure Budget (APBN). Initial funding will come from investors, including the Daya Anagata Nusantara Investment Authority (Danantara).
“So it is not all from the APBN. Investors will provide the initial funds to build there, including Danantara. The amount is quite substantial, and it is not APBN money,” he explained.
According to him, the APBN is only prepared as temporary support if the management requires additional operational funds.
“If they lack the money to pay salaries and so on, it can be covered by the APBN temporarily for a certain period,” he revealed.
Purbaya stated that APBN support is likely to be limited, as the funds prepared by Danantara are considered sufficient for the PFII’s initial needs.
“This is just a precautionary measure,” he said.
In addition to funding, the government is also still reviewing the location for the PFII. Several areas are under consideration, including North Bali, the Kura Kura Bali Special Economic Zone, and the Sanur Special Economic Zone. However, a final decision has not been made as the government is still considering infrastructure readiness, development costs, and the area’s attractiveness to foreign investors.
“There are several proposed names, such as North Bali, Kura Kura, and Sanur. But there is no final proposal yet. We will choose the one that is most logical, quickest to implement, cheapest for the state, and most capable of attracting foreign investors,” Purbaya stated.