Bali is a candidate for an international financial center, Airlangga: Regulations are completed before August 16
JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto explained the reason why the government chose Bali as the location of the Indonesian International Financial Center (PFII).
According to him, an international financial center not only requires competitive regulations, but also a lifestyle that is able to attract global investors.
"In Bali because when it comes to financial centers, it also talks about lifestyle, and a lifestyle that is relatively not too busy or busy or crowded. So we offer like in Dubai, in certain areas it is not too busy, so are other places," he told the media, Friday, July 10.
He added that Bali already has the Sanur Health Special Economic Zone (KEK) which is considered to be able to support the needs of investors, especially in terms of international standard health services.
"So Bali is one of the places that also requires first-class health conditions. And we already have KAEK Sanur," he explained.
However, Airlangga emphasized that the PFII would not be built within the Sanur Special Economic Zone, but in a different special economic zone.
"KEK will be built, not in KEK Sanur, there is a separate KEK," he said.
The government hopes that the presence of PFII can attract global investment flows to Indonesia, Airlangga said that Singapore's financial center is able to manage investment funds (assets under management) of around 5 trillion US dollars which are then channeled to various countries, including Indonesia.
"The important thing is that this is a platform for investment. For example, the financial center in Singapore can invite their funds under management of 5 trillion US dollars. And from there it is only divided to all ASEAN countries. That's why one of Indonesia's largest investments is from Singapore. Well, that's because they trust and rely on the laws in Singapore," he said.
He also compared it to Dubai, which currently has funds under management of around US$800 billion and Indonesia has the opportunity to present an alternative to international financial centers in the region by offering a competitive legal framework such as Singapore and Dubai.
"In this region, he has no rivals, so hopefully, by encouraging alternatives for financial centers with the same legal framework as Dubai and Singapore," he said.
The government, continued Airlangga, will prepare various incentives and legal systems that are equivalent to international financial centers.
Airlangga said that the discussion of the Draft Law (RUU) on PFII is currently still ongoing in the DPR, while the government is also preparing a Government Regulation (PP) as an implementing regulation.
"The advantage (PFII) is in Bali, there are beaches, there are dances. This is parallel because we are waiting for the law as well, just wait for the PP," he explained.
Airlangga hopes that all supporting regulations for PFII will be completed before August 16, 2026, if the discussion of the bill goes according to schedule.
"Yes, immediately after that, hopefully before August 16th everything will be ready," he concluded.