The Indonesian government, along with the House of Representatives (DPR RI), officially began deliberations on the Draft Law (RUU) concerning the Indonesian International Financial Center (PFII).
The draft law implements the mandate of Article 248A of Law No. 4 of 2026 concerning Amendments to Law No. 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK). This also represents a strategic step by the government to build a modern, competitive, and internationally standardized financial ecosystem to strengthen the competitiveness of the national economy amidst global economic dynamics.
Finance Minister Purbaya Yudhi Sadewa stated that the establishment of PFII is part of the government's efforts to realize a stronger, more inclusive, sustainable, and globally competitive national economy, as mandated by the Asta Cita program.
This policy also implements the national development goals as stated in the 1945 Constitution of the Republic of Indonesia, namely to achieve welfare and prosperity for all Indonesian people.
"The establishment of the Indonesian International Financial Center is intended to enhance Indonesia's competitiveness as an international financial center. The PFII is expected to be a catalyst for deepening the national financial sector, developing financial services innovation, increasing investment, facilitating financing for priority sectors and national strategic projects, sustainable financing, and strengthening the financial sector's contribution to Indonesia's economic growth," said the Minister of Finance while delivering a government statement at a meeting with Commission XI of the Indonesian House of Representatives (DPR RI) in Jakarta on Thursday (July 2).
The Minister explained that global economic developments show that international financial centers have become important instruments for various countries in attracting investment, expanding access to financing, accelerating innovation in the financial services sector, and strengthening their position in the global economic value chain. The existence of international financial centers also enables more efficient mobilization of global capital and creates jobs with high added value.
According to the Minister, Indonesia has very strong capital to take on a larger role in the global financial ecosystem. The size of the national economy, the breadth of the domestic market, strategic geographic location, rich natural resources, and long-term economic growth prospects provide a strong foundation for developing an international-standard financial center.
However, Indonesia currently lacks a specifically designed international financial region with governance, institutional, legal certainty, and competitiveness standards comparable to those of other international financial centers worldwide. Therefore, the government deems it necessary to establish the PFII (Financial Management Facility) as a region with specific characteristics to accommodate the needs of the global business world and financial services industry.
To ensure the effective operation of this region, the government proposes the establishment of institutions to carry out the functions of administration, management, supervision, and dispute resolution. All these institutions are designed based on the principles of professionalism, independence, transparency, and accountability, while maintaining close coordination with the government.
In addition to providing space for the development of various modern financial products and services of international standards, the PFII Bill also regulates a number of business facilitation measures to increase investment attractiveness. These facilities include ease of access in immigration, employment, residency, licensing, and various incentives designed to attract long-term investment and encourage the growth of high-value-added economic activity.
In terms of legal certainty, the government proposes the establishment of a PFII Court with special authority to examine, adjudicate, and resolve disputes related to business activities within the PFII area, as well as international commercial disputes related to the area. The presence of a prompt, professional, and credible dispute resolution mechanism is expected to further bolster investor confidence in Indonesia as a global investment destination.
The bill also opens up space for the implementation of international best practices through the adoption and adaptation of principles of international commercial law and global standards, which have been proven to increase efficiency and certainty in international business activities. The Minister of Finance emphasized that this policy is not intended to diminish national legal sovereignty, but rather to strengthen Indonesia's competitiveness in attracting investment and global economic activity. The drafting of these provisions was also carried out through dialogue and coordination with the Supreme Court.
The government believes that the benefits of establishing PFII will be felt widely, not only by business actors in the region, but also by the national economy through increasing investment, creating jobs, transferring knowledge and technology, developing human resources, and strengthening Indonesia's competitiveness at the global level.
Closing his presentation, the Minister of Finance hoped that the discussion of the Bill on the Indonesian International Financial Center could take place constructively with the DPR RI so as to produce a legal basis that was able to answer Indonesia's economic development needs in the future.
"The government hopes that the discussion of the Bill on the Indonesian International Financial Center can produce regulations that are able to answer Indonesia's economic development needs in the future while still paying attention to the mandate of the Law on the Development and Strengthening of the Financial Sector," concluded the Minister of Finance.
Deni Surjantoro
Kepala Biro Komunikasi dan Layanan Informasi
Kementerian Keuangan