Indonesia's Ministry of Finance said the government and the House of Representatives have started discussing a draft law to create the Indonesia International Financial Center, or PFII. The proposal would establish a specially designated area within Indonesia for financial sector businesses, supporting financial services activities and other economic activity linked to an international financial center ecosystem. The ministry framed the bill as a way to attract investment, deepen the domestic financial sector, support financial innovation and strengthen Indonesia's position as an international financial hub. Under the draft law, PFII would remain part of Indonesia and subject to national sovereignty, but would receive special treatment intended to make the regime more competitive for global financial business. That includes facilitation in immigration, employment, residency, licensing and taxation. The government also proposes a dedicated PFII court with authority to hear, try and decide disputes related to business activity in PFII, as well as international commercial disputes connected to the area, to provide greater legal certainty for international market participants. The ministry also linked the bill to Article 248A of Law No. 4 of 2026, which amended Law No. 4 of 2023 on Development and Strengthening of the Financial Sector. The next step is the continuing discussion of the PFII bill with Parliament's Commission XI, which the government said it expects will produce a legal framework for establishing the center.

Original source Back to tracker