Chairman of Commission XI of the DPR said that the PFII Law is a Transformative Initiative of the President to attract global capital to Indonesia.

Chairman of Commission XI of the Indonesian House of Representatives, Mukhamad Misbakhun/ Photo: IST

Chairman of Commission XI of the Indonesian House of Representatives, Mukhamad Misbakhun, assessed that the enactment of the Law on the Indonesian International Financial Center (PFII) is a transformative step initiated by the President to strengthen Indonesia's competitiveness in competing for global capital flows amid changes in the world's economic landscape.

After attending the DPR RI Plenary Meeting at the Parliament Complex, Jakarta, Thursday, Misbakhun said the presence of the PFII Law was not merely to form an area or provide investment incentives, but to build a new institutional foundation so that Indonesia is able to become the main destination for international capital.

"PFII is a transformative initiative. This is a good step taken by the President to bring global capital into Indonesia. We can no longer rely solely on domestic sources of financing if we want to jump to a developed country," Misbakhun told reporters.

According to him, competition between countries in attracting global investment is getting tighter. Therefore, Indonesia needs institutional instruments that are able to provide legal certainty, regulatory efficiency, and ease of doing business so that it can compete with various international financial centers in the region and the world.

Misbakhun explained that the enactment of the PFII Law is part of the national economic transformation which places the financial services sector as one of the new growth engines.

Until now, Indonesia has been considered to have strong economic fundamentals, but has not been able to fully optimize this potential to become a magnet for international investment flows.

"If we want Indonesia to rise in class, then we must build institutions that also rise in class. PFII is one of the instruments to answer that challenge," he said.

He said that the existence of PFII is expected to be able to expand the source of development financing, deepen the domestic financial market, as well as improve Indonesia's position in the global investment network.

Furthermore, Misbakhun assessed that the benefits of the PFII Law are not only measured by the amount of investment that enters, but also by the economic impact generated, ranging from the creation of quality jobs, the development of modern financial services industries, the increase in technology and knowledge transfer, to the increase in value-added economic activities in the country.

"What we want to build is not only capital flows, but a new economic ecosystem that is capable of creating a multiplier effect for the national economy," he said.

He added that the success of the implementation of the PFII Law will depend on the government's consistency in drafting various credible, simple, and capable implementation rules that provide certainty for investors without neglecting the principles of good governance.

According to Misbakhun, global investor confidence is ultimately not only formed by incentives, but also by legal certainty, regulatory quality, economic stability, and government policy consistency.

"If the entire ecosystem runs well, I am optimistic that PFII will be one of the important levers to increase Indonesia's competitiveness in attracting international investment," he said.

According to Misbakhun, the attractiveness of PFII also needs to be supported by a competitive incentive package so that Indonesia has more value than other international financial centers. However, he emphasized that the provision of incentives must remain measured and directed to attract new investments that add value to the national economy, not just moving business activities or company registration into the PFII area.

The DPR RI in the Plenary Meeting, Thursday, July 24, 2026, approved the Draft Law on the Indonesian International Financial Center into law. The regulation is expected to become a legal basis for the development of international financial centers that are able to increase the competitiveness of the national economy, strengthen the financial sector, and support Indonesia's long-term economic growth target.