Indonesia launches International Financial Center to attract global capital

Indonesia has launched the Indonesia International Financial Center (PFII) as a strategic move to bolster its competitiveness in attracting global capital. Mukhamad Misbakhun, Chairman of Commission XI of the House of Representatives, views the PFII as a crucial new instrument for Indonesia, moving beyond reliance on domestic financing amidst intense global investment competition.

Misbakhun emphasized that the PFII law is more than just creating an investment zone; it establishes an institutional foundation offering legal certainty, regulatory efficiency, and streamlined business processes for international investors. "The PFII is a transformative initiative. This is a good step taken by the President to bring global capital into Indonesia. We can no longer rely solely on domestic financing sources if we want to leap forward as a developed country," he stated.

He further explained that national economic transformation requires more than just strong economic fundamentals. Indonesia needs institutions capable of competing with international financial centers. The PFII is expected to become a new growth engine by strengthening the financial services sector, expanding development financing sources, deepening domestic financial markets, and enhancing Indonesia's position in the global investment network.

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PFII is a transformative initiative. This is a good step taken by the President to bring global capital into Indonesia. We can no longer rely solely on domestic financing sources if we want to leap forward as a developed country.

Misbakhun added that the PFII's success will be measured not only by the volume of investment but also by its broader economic impact, including quality job creation, the development of modern financial services, technology transfer, and the growth of value-added economic activities. "What we aim to build is not just capital flow, but a new economic ecosystem capable of creating a multiplier effect for the national economy," he said.

However, Misbakhun cautioned that the effective implementation of the PFII law hinges on the quality of its derivative regulations. The government must ensure these regulations are simple, credible, and provide legal certainty while adhering to good governance principles. Investor confidence, he noted, depends on economic stability, legal certainty, regulatory quality, and consistent government policies. He also urged the government to prepare competitive incentive packages for the PFII, ensuring they attract new investments that add value to the national economy.

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What we aim to build is not just capital flow, but a new economic ecosystem capable of creating a multiplier effect for the national economy.