Prabowo Reveals the Location and Institutional Structure of the Indonesian International Financial Center

Indonesian President Prabowo Subianto (Photo: Antara)

JAKARTA - President Prabowo Subianto announced the location plan for the Indonesian International Financial Center (PFII), namely for the initial phase, PFII will be centered in Jakarta, with development opportunities in Bali and a number of other regions in Indonesia.

"Today I announce the plan for the location of the Indonesia Financial Center or the Indonesian International Financial Center, abbreviated PFII. We have determined the temporary location of PFII in Jakarta and once we can open it, we will also open PFII in Bali and maybe there will be other areas in other parts of the Republic of Indonesia that are attractive for large funds from abroad," he said in the Government's Introduction/Explanation of the State Budget Bill for Fiscal Year 2027 along with the Financial Note and Supporting Documents, Friday, August 14.

According to Prabowo, the presence of PFII will be a new face of Indonesia's financial center so that Jakarta and Bali will later be directed as a center for financial activities, investment, financial technology, arbitration, and the resolution of commercial disputes with international standards.

In addition to location, Prabowo also explained the institutional structure of PFII, namely the structure will include the Advisory Council, the PFII Council, the PFII Management Institution, the PFII Financial Services Supervisory Institution, the PFII Court under the Supreme Court, and the PFII Arbitration Institution.

"The institutional framework of PFEI consists of a consideration council, PFII council, PFII management institution, PFII financial services supervisory institution, PFII court under the Supreme Court, and PFII arbitration institution," he said.

Prabowo said the government also provided flexibility in the use of English as the contract language in PFII, and there were opportunities to adopt commercial law principles and international standards to support business and investment activities.

The PFII will cover various sectors, including banking, insurance, capital markets, derivatives, carbon exchanges, bullion, fintech, Islamic finance, family offices, treasury centers, and investment management.

To support the attractiveness of PFII, he added that the government would provide certainty regarding capital transfers and repatriation as well as profits and also prepare tax facilities for activities that meet the provisions, golden visa, and competitive licensing services.

Despite offering various facilities, Prabowo emphasized that PFII will still implement anti-money laundering provisions, transparency of beneficial owners, tax obligations, and international information exchange.

"We are building PFII so that the world's capital finds certainty in Indonesia, the best talents work in Indonesia and transactions on Indonesian wealth are settled in Indonesia," he concluded.