Indonesia prepares rules for international financial center

Jakarta (ANTARA) - The government is preparing implementing regulations for the establishment of the upcoming Indonesian International Financial Center (PFII), a strategic initiative designed to establish the country as a major global economic hub.

Coordinating Minister for Economic Affairs Airlangga Hartarto said on Wednesday (Oct 28) that implementing regulations are being drafted.

The multi-phase project will debut in Jakarta before expanding to Bali, adhering to a directive issued by President Prabowo Subianto.

"The regulations are currently being prepared," Airlangga said in Jakarta.

According to the minister, the PFII is being modeled directly after the Dubai International Financial Center (DIFC).

Jakarta was selected as the initial location due to its readiness as a global city, though officials are actively finalizing the regulatory infrastructure, supporting rules, and specialized human resources.

Under the planned framework, the PFII will feature a specialized two-tier dispute settlement mechanism with appeals limited to a single instance.

The Supreme Court will appoint judges, and the system will incorporate elements of international legal frameworks, including common law characteristics, to ensure legal certainty for international investments.

Contracts within the hub may be executed in English, and the architecture permits commercial law principles and international standards. Furthermore, ad hoc judges may be drawn from prominent legal experts in Indonesia and abroad.

Announced by President Prabowo last August, the PFII is structured to encompass an Advisory Council, a Management Institute, a Financial Services Supervisory Agency, a specialized PFII Court and an Arbitration Institute.

The hub is intended to accommodate a wide range of financial sectors, including banking, insurance, capital markets and derivatives, carbon exchanges, bullion trading, fintech, Islamic finance, family offices, treasury centers, and investment management.

To bolster global competitiveness, the government is preparing investment incentives such as golden visas, streamlined licensing, and guarantees for capital and profit repatriation.

Officials said that strict compliance measures, including anti-money laundering regulations, beneficial ownership transparency, and international tax-sharing standards, will remain fully enforced.

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Translator: Bayu Saputra, Yashinta Difa
Editor: Bayu Prasetyo
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