JAKARTA. The government, represented by the Ministry of Finance, and the House of Representatives (DPR) have begun deliberating the Bill on the Indonesia International Financial Center (Pusat Finansial Internasional Indonesia/PFII).
The bill will serve as the legal foundation for establishing the PFII, which aims to develop a modern, competitive, and internationally recognized financial ecosystem.
In a written statement, Finance Minister Purbaya Yudhi Sadewa said the establishment of such a financial ecosystem is expected to enhance Indonesia's economic competitiveness.
Specifically, Purbaya outlined six key objectives of establishing the PFII:
deepen Indonesia's financial sector;
foster innovation in financial services;
increase investment;
provide financing for priority sectors and national strategic projects;
create a sustainable source of financing; and
strengthen the financial sector's contribution to Indonesia's economic growth.
Aiming to Attract Investments
The PFII is also expected to increase investment inflows into Indonesia. This expectation is supported by the experience of countries that have established international financial centers.
Countries with international financial centers have generally been able to attract investment, expand access to financing, accelerate innovation in financial services, and strengthen their position in global value chains.
To date, Indonesia has not had a dedicated zone serving as an international financial center.
Supported by Various Facilities and Incentives
The PFII will be supported by various facilities designed to encourage investment. These include simplified immigration procedures, employment arrangements, residency provisions, licensing services, and a range of investment incentives.
Purbaya emphasized that the incentives will be carefully designed to encourage long-term investment while creating added value for domestic industries. (KEN)
