Indonesia's parliament has passed a bill to establish an international financial centre (PFII), aiming to attract foreign investment and accelerate economic growth. Finance Minister Purbaya Yudhi Sadewa highlighted that PFII will draw foreign capital flows and sustainable portfolio investment, providing long-term financing to expand the national economy. The centre is anticipated to yield significant long-term benefits for national development. The bill, passed unanimously, outlines the institutional framework and tax incentives, and will establish an arbitration body and a special court. Bali has been proposed as a potential location for the centre. President Prabowo Subianto has targeted an economic growth rate of eight percent by 2029, supported by increased public spending. The economy grew by 5.6 percent year-on-year in the first quarter of 2026.
The proposed financial centre is expected to play a crucial role in Indonesia's economic strategy, leveraging foreign investment to stimulate growth and development across the nation. The establishment of PFII aligns with the government's broader economic objectives, aiming to create a robust financial ecosystem that can compete on the global stage. The creation of specialized legal institutions within the centre will ensure efficient dispute resolution, enhancing its appeal to international investors.
