Indonesia Eyes 2026 Launch for International Financial Center, Location Under Review

Indonesia's Finance Minister, Purbaya Yudhi Sadewa, aims for the Indonesia International Financial Center (PFII) to commence operations within the current year. The necessary government regulations to govern its functioning are still being drafted, though the PFII law itself has already been ratified by the House of Representatives.

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The government regulations are not yet drafted, we will try to do it as quickly as possible. We can aim for this year.

"The government regulations are not yet drafted, we will try to do it as quickly as possible. We can aim for this year," Purbaya stated on Tuesday, July 21, 2026, following an APBN press conference at the Ministry of Finance in Jakarta. He emphasized that the current period of high global uncertainty is an opportune moment for the PFII to launch, as it can attract investment interest when other financial centers face instability.

Under the PFII law, the Finance Minister holds the authority to designate the location for the international financial hub. Minister Purbaya indicated that no specific site has been finalized yet, as he is currently reviewing various proposals. He mentioned that potential locations such as the Kura Kura or Sanur Special Economic Zones (KEK) in Bali have been suggested. A dedicated team will evaluate these proposals based on criteria including the speed of implementation, cost-effectiveness, and the potential to attract foreign investors.

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Because the uncertainty is high. That's when the demand for financial centers increases. When uncertainty is high. But when everything is calm, we will find it harder to compete.

"But fundamentally, we will see what is best. What is clear is that the infrastructure must be easy to build or partially exist, and the location must be attractive to wealthy foreign investors," Purbaya added. Previously, Mohamad Hekal, Deputy Chairman of Commission XI and head of the PFII Lawmaking Committee, noted that the government is examining several potential areas for the financial center, with at least two or three regions in Bali under consideration, and the possibility of adding more locations.

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But fundamentally, we will see what is best. What is clear is that the infrastructure must be easy to build or partially exist, and the location must be attractive to wealthy foreign investors.