JAKARTA - The Indonesian House of Representatives (DPR) has officially passed the Draft Law (RUU) on the Indonesian International Financial Center (PFII) into law at the 26th Plenary Meeting of the V Session of the 2025-2026 Session.
The ratification is an important milestone because Indonesia now has a legal basis to establish the Indonesian International Financial Center, and the presence of the PFII is expected to be able to attract global investment while strengthening the structure and depth of the national financial sector.
The Chairperson of the House of Representatives, Puan Maharani, asked for the approval of all factions of the bill in the 26th Plenary Meeting of the V Session Period of 2025-2026.
"Now we will ask all factions whether the bill on the Indonesian International Financial Center can be approved to be enacted into law, agree?" he asked on Tuesday, July 21.
All participants in the trial expressed their approval, which was then ratified through the beating of the hammer led by the trial.
Deputy Chairman of Commission XI of the Indonesian House of Representatives, Mohamad Hekal, explained that the discussion on the PFII bill began on July 2, 2026 through a working meeting between Commission XI of the Indonesian House of Representatives and the government, and after that, the discussion continued through a series of Working Committee (Panja) meetings.
In the first meeting, the government explained the substance of the bill, while all factions agreed that the discussion should continue through the Panja mechanism.
As part of the implementation of the principle of meaningful participation, the Committee also held public hearings (RDPU) on July 6, 8, and 9, 2026 by inviting academics, relevant ministries and agencies, financial sector authorities, banking associations, and professional organizations in the field of financial services.
"In the RDPU, the Panja RUU on PFII listened and received very constructive input related to various aspects of regulation in the RUU on PFII from various parties and stakeholders, including academics from various universities, related ministries and agencies, financial sector authorities, banking associations, and associations of various professions in the financial sector," he explained.
The discussion of the substance of the bill was then continued in the Panja meeting on July 8, 9, 13, 14, 15, and 16, 2026, after which the Drafting Team and the Synchronization Team refined the text on July 17-19, 2026 before finally being passed in the Panja meeting on July 19 and 20, 2026.
On July 20, 2026, Commission XI together with the government held a working meeting for the first level decision-making. At the meeting, all factions in Commission XI of the DPR RI and the government agreed that the PFII bill be brought to the second level of discussion to obtain approval in the plenary session of the DPR RI.
Hekal hopes that the PFII Law can become a strategic instrument in strengthening the national economy through the optimization of investment and strengthening the financial sector.
According to him, the regulation is expected to be able to maintain balance, encourage progress, and strengthen the unity of the national economy in order to realize an Indonesian society that is just, prosperous, and prosperous in accordance with the mandate of Pancasila and the 1945 Constitution.
Meanwhile, Minister of Finance Purbaya Yudhi Sadewa stated that the discussion of the second level of the PFII bill was an important and historic momentum for the direction of Indonesia's economic development.
According to Purbaya, in the midst of global economic challenges, Indonesia needs strategic steps to strengthen economic resilience, expand sources of development financing, and strengthen its position as a new emerging economic powerhouse.
"The draft law on PFII was born out of the realization that as the largest Southeast Asian country and a member of the G20, Indonesia is now ready to have its own financial center that is credible, independent, and has integrity and global competitiveness," he explained.
Purbaya added that PFII was not formed to replace the existing national financial system, but to complement it through the development of an international standard financial services ecosystem.
He said during the discussion process, the government and the DPR also ensured that the regulation remained in the national interest, in addition to being able to attract global investors.
He explained that the PFII Law is built on three main pillars, namely the first pillar is access to capital and investment, where PFII is expected to be able to attract foreign capital flows and quality portfolio investments as a source of long-term financing that can accelerate national economic growth to reach the target of 8 percent as proclaimed by President Prabowo Subianto.
"If the national economy can grow bigger and grow faster, this will generate great long-term benefits for national development throughout Indonesia. New tax bases will also be created and the creation of new jobs will further be a multiplier effect of the availability of new long-term financing sources from the international community for the equalization of national development," he said.
The second pillar is innovation and governance, namely PFII will build a modern financial services ecosystem with the support of cutting-edge technology, international cyber security systems, and the implementation of good governance.
"The uniqueness of PFII also lies in the strengthening of the legal aspect, namely the existence of PFII courts and efficient, consistent, and independent PFII arbitration institutions that prioritize certainty and justice for business actors while adhering to the sovereignty of the Indonesian legal system," he said.
Furthermore, the third pillar is the improvement of competitiveness and human resource capacity, namely through PFII, the government hopes to create more jobs for Indonesian talents while encouraging technology and knowledge transfer, especially in the financial sector.
"The long-term impact is capital cost efficiency and increased competitiveness for the national economy," he said.
Purbaya explained that in general terms, the PFII Law regulates various aspects, ranging from general provisions, establishment, status and purpose of PFII, business activities, institutions, arbitration institutions, special PFII courts, central and regional government support, tax facilities, other special facilities, to closing provisions.
"The leadership and members of the Council whom we respect, this draft law on PFII is not just a formal regulation, but a new architecture for the future of Indonesian finance. This is a joint commitment between the DPR RI and the government to confirm Indonesia's position as a key pillar of the world economy," he concluded.
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