Commission XI of the DPR and the Government Agree on the Indonesian International Financial Center Bill

JAKARTA - The government and Commission XI of the Indonesian House of Representatives officially agreed on the Draft Law on the Indonesian International Financial Center (PFII Law) at the I level discussion.

The bill, which was drafted by the Working Committee (Panja) since July 6, 2026, will then be brought to the DPR RI Plenary Meeting to obtain approval at the second level of talks scheduled to take place on July 21, 2026.

Chairman of Commission XI of the House of Representatives, Mukhamad Misbakhun, conveyed that all eight factions in Commission XI had expressed their approval of the PFII bill. Thus, the discussion at the commission level was declared complete and the bill was ready to be submitted in the plenary session of the House of Representatives.

"We can conclude that the 8 fractions in Commission XI of the DPR RI have approved the bill on PFII. For this reason, it will be brought to the 2nd level of discussion in the plenary session of the DPR RI which will be held tomorrow, July 21, 2026," he said while knocking on the session hammer in the meeting room of Commission XI of the DPR, Monday, July 20.

The I-level approval meeting was also attended by Minister of Finance Purbaya Yudhi Sadewa and government officials, including representatives from the Ministry of Law, the Ministry of State Secretariat, and the Ministry of Investment and Industrialization/Investment Coordinating Board (BKPM).

On this occasion, the Minister of Finance expressed his appreciation to the leadership and members of Commission XI of the DPR RI and the Panja RUU PFII for their cooperation and the discussion process which was considered to have taken place constructively, productively, and effectively.

According to him, the synergy between the government and the DPR reflects a common commitment to strengthening the foundation of the national economy through the development of a deeper, innovative, efficient, and integrated financial sector with the global financial system.

"The government has a view in line with the DPR RI that the establishment of the Indonesian International Financial Center is a strategic step to be a catalyst for deepening the financial market, diversifying instruments, and sources of financing, increasing investment, and strengthening Indonesia's position as part of the global financial ecosystem," he explained.

The establishment of PFII is also a mandate of Article 48A of Law Number 4 of 2026 concerning Amendments to Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector. This provision requires the implementation of PFII to be regulated by a separate law.

Purbaya explained that the PFII bill also regulates the establishment of areas with special characteristics that have a certain level of independence and are supported by independent and international standard institutions.

He hopes that this area is able to support various activities in the financial sector as well as other business that is global oriented.

Purbaya said that the main objective of the establishment of PFII is to increase Indonesia's competitiveness as an international financial center, encourage financial sector innovation, attract domestic and foreign investment, expand access to financing for various strategic sectors, including infrastructure, sustainable financing, climate financing, and strengthen the contribution of the financial sector to national economic growth.

"The Indonesian International Financial Center is not only aimed at gathering financial sector activities, but also to strengthen the financing of the rill sector, so that it will encourage the increase in productive investment that creates jobs and strengthens national economic growth," he said.

He added that PFII also aims to improve economic equality, strengthen human resource capacity, and support the development of green economy, blue economy, sharia finance, capital markets, financial technology, digital finance, and financial market infrastructure that are globally competitive.

"To achieve these goals, the Government and the DPR agree that the PFII bill focuses on several arrangements and material changes, including regarding the establishment of the position and purpose of PFII, including the authority of the regulator and its institutions, as well as the direction of the development of PFII as an international financial center that is competitive, able to attract investment, strengthen the financial sector, and the national economy. Other regulations are related to business activities in PFII, namely the financial sector, supporting financial sector business activities, and other sector business activities in the PFII area," he explained.

The bill also regulates a number of important aspects, including the establishment of the PFII institution consisting of the Advisory Council, the PFII Council, the PFII Management Institution, the PFII Financial Services Supervisory Institution, the PFII Arbitration Institution, to the establishment of the PFII Court as part of the dispute resolution mechanism.

As for investment, the PFII bill provides various incentives in the form of tax facilities, such as income tax, value added tax (VAT), luxury goods sales tax (PPnBM), and customs facilities. In addition, there are also various non-fiscal facilities, including Golden Visa, immigration facilities, employment, licensing, and residency.

In addition, this bill also contains a number of special provisions, such as the use of English in certain activities, the use of foreign currencies in transactions in the PFII area, and the application of regulations that can adopt the principles of international law, global commercial practices, and international standards in accordance with the principles of reasonableness and fairness.

"On behalf of the government, we accept the results of the discussion of the draft law at the panja level which is the basis for the decision-making of the first-level talks today. Furthermore, based on the decision that has been made in this first-level discussion, the government agrees to be continued in the second-level discussion or decision-making on the Indonesian International Financial Center Bill in the plenary session of the DPR RI," he concluded.