PFII Bill is being discussed, DPR and Government Target to Complete 20 Days

Rupiah (Photo: between)

JAKARTA - The government together with the Indonesian House of Representatives (DPR) officially started discussing the Draft Law (RUU) on the Indonesian International Financial Center (PFII).

The bill has been included in the 2026 National Legislation Program (Prolegnas) as a government initiative proposal, while the academic manuscript has been submitted to Commission XI of the DPR RI as a basis for discussion.

The preparation of the PFII bill is an obligation under Article 248A of Law Number 4 of 2026 concerning Amendments to Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK).

Chairman of Commission XI of the Indonesian House of Representatives, Misbakhun, said that the government and the DPR had about 20 days to complete the discussion of the bill before the session ended on July 22, 2026, so Commission XI would prioritize the discussion of the PFII by clearing other agendas.

"This will have to be resolved during the DPR session which will end on July 22, there are 20 days, we will have to be able to set the pace so that there will be long, substantive discussions, ranging from lobbying to everything we will do, in order to carry out the mandate of the law," said Misbakhun in a working meeting with Purbaya at the DPR RI, Thursday, July 2.

He explained that the discussion at level I was targeted to be completed on July 20, while the approval at level II was scheduled a day later or on July 21.

Misbakhun revealed that the concept of the establishment of PFII had actually been discussed since the drafting of the P2SK Law. However, because the scope of regulation was considered very broad, the government and the DPR agreed to regulate it through a separate law.

"We are discussing it since the P2SK law. In the P2SK law we already have all the drafts, then because at that time we saw that this could not be fully in the P2SK law," he said.

He is optimistic that the discussion can be completed according to the target so that the PFII bill can be brought to the plenary meeting for approval at the II level on July 21, before President Prabowo Subianto submits the Financial Statement.

"So if we look at that law, it was formed within 3 months. So we will start in June, July, August, we will discuss the law," he said.

According to Misbakhun, PFII will be an area with various special provisions or exemptions, ranging from taxation aspects, financial sector supervision, to dispute resolution mechanisms.

He added that one of the concepts being studied is the implementation of a common law system for business disputes so that the settlement process is faster and provides legal certainty for investors.

Misbakhun hopes that the scheme will be able to increase Indonesia's competitiveness in competing with international financial centers in the region, such as Labuan in Malaysia and the Dubai International Financial Centre.

"Because this will be a law that is expected in the future, it will attract foreign investors to the Indonesian region. So they are interested in registering their companies in the Indonesian jurisdiction that has been given this special authority," he said.

Misbakhun added that the PFII area will be targeted to become a center of activity for various financial services institutions, ranging from banking, insurance companies, pension funds, venture capital, to securities companies.

Regarding the location, the government and the DPR are still studying a number of alternatives. Bali is one of the candidates proposed by the government, but other options such as Batam, the Capital of Nusantara (IKN), Mandalika, to Labuan Bajo are still under discussion.

However, he emphasized that there was no decision regarding the location or number of PFII areas to be formed. All options will be discussed further with the government, experts, and industry players during the process of drafting the bill.

Meanwhile, Finance Minister Purbaya Yudhi Sadewa ensured that the government targeted the discussion of the PFII bill to be completed in July 2026. After being passed, the implementation of the regulation is targeted to start running at the end of the year.

"July's law is complete. In August, the President hopes that it can be read in the President's speech, I think that by the end of this year it will be on track," he told the media.

For information, PFII is a special area prepared by the government as a center for international financial activities in Indonesia, and this area is designed to attract global investment, expand financing access, and strengthen the competitiveness of the national financial services sector.

To support this goal, PFII will be equipped with various business facilitation, tax incentives, and legal mechanisms that refer to international standards.

In addition, the government hopes that the existence of this area can encourage economic growth, create high-value-added jobs, and strengthen Indonesia's position in the global financial ecosystem.

JAKARTA - The government together with the Indonesian House of Representatives (DPR) officially started discussing the Draft Law (RUU) on the Indonesian International Financial Center (PFII).

The bill has been included in the 2026 National Legislation Program (Prolegnas) as a government initiative proposal, while the academic manuscript has been submitted to Commission XI of the DPR RI as a basis for discussion.

The preparation of the PFII bill is an obligation under Article 248A of Law Number 4 of 2026 concerning Amendments to Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK).

Chairman of Commission XI of the Indonesian House of Representatives, Misbakhun, said that the government and the DPR had about 20 days to complete the discussion of the bill before the session ended on July 22, 2026, so Commission XI would prioritize the discussion of the PFII by clearing other agendas.

"This will have to be resolved during the DPR session which will end on July 22, there are 20 days, we will have to be able to set the pace so that there will be long, substantive discussions, ranging from lobbying to everything we will do, in order to carry out the mandate of the law," said Misbakhun in a working meeting with Purbaya at the DPR RI, Thursday, July 2.

He explained that the discussion at level I was targeted to be completed on July 20, while the approval at level II was scheduled a day later or on July 21.

Misbakhun revealed that the concept of the establishment of PFII had actually been discussed since the drafting of the P2SK Law. However, because the scope of regulation was considered very broad, the government and the DPR agreed to regulate it through a separate law.

"We are discussing it since the P2SK law. In the P2SK law we already have all the drafts, then because at that time we saw that this could not be fully in the P2SK law," he said.

He is optimistic that the discussion can be completed according to the target so that the PFII bill can be brought to the plenary meeting for approval at the II level on July 21, before President Prabowo Subianto submits the Financial Statement.

"So if we look at that law, it was formed within 3 months. So we will start in June, July, August, we will discuss the law," he said.

According to Misbakhun, PFII will be an area with various special provisions or exemptions, ranging from taxation aspects, financial sector supervision, to dispute resolution mechanisms.

He added that one of the concepts being studied is the implementation of a common law system for business disputes so that the settlement process is faster and provides legal certainty for investors.

Misbakhun hopes that the scheme will be able to increase Indonesia's competitiveness in competing with international financial centers in the region, such as Labuan in Malaysia and the Dubai International Financial Centre.

"Because this will be a law that is expected in the future, it will attract foreign investors to the Indonesian region. So they are interested in registering their companies in the Indonesian jurisdiction that has been given this special authority," he said.

Misbakhun added that the PFII area will be targeted to become a center of activity for various financial services institutions, ranging from banking, insurance companies, pension funds, venture capital, to securities companies.

Regarding the location, the government and the DPR are still studying a number of alternatives. Bali is one of the candidates proposed by the government, but other options such as Batam, the Capital of Nusantara (IKN), Mandalika, to Labuan Bajo are still under discussion.

However, he emphasized that there was no decision regarding the location or number of PFII areas to be formed. All options will be discussed further with the government, experts, and industry players during the process of drafting the bill.

Meanwhile, Finance Minister Purbaya Yudhi Sadewa ensured that the government targeted the discussion of the PFII bill to be completed in July 2026. After being passed, the implementation of the regulation is targeted to start running at the end of the year.

"July's law is complete. In August, the President hopes that it can be read in the President's speech, I think that by the end of this year it will be on track," he told the media.

For information, PFII is a special area prepared by the government as a center for international financial activities in Indonesia, and this area is designed to attract global investment, expand financing access, and strengthen the competitiveness of the national financial services sector.

To support this goal, PFII will be equipped with various business facilitation, tax incentives, and legal mechanisms that refer to international standards.

In addition, the government hopes that the existence of this area can encourage economic growth, create high-value-added jobs, and strengthen Indonesia's position in the global financial ecosystem.