Indonesia's Financial Center Push Needs Credible Investment Ecosystem: Valuers Society

Indonesia's ambition to become an International Financial Center (IFC) hinges on more than just financial regulations; it requires a robust and credible investment ecosystem. The Indonesian Valuers Society (MAPPI) argues that an independent asset valuation system, adhering to international standards, is crucial for attracting global investment and bolstering Indonesia's competitiveness.

During a hearing with the House of Representatives' Commission XI, MAPPI stressed the importance of aligning the upcoming bill on the IFC with a dedicated law for the valuation profession. "The success of the IFC does not solely depend on financial transaction regulations, but also on a credible ecosystem, including the valuation profession which guarantees reliability, independence, and accuracy of asset valuations for domestic and international investors," stated Budi Prasodjo, Chairman of MAPPI's National Board.

MAPPI highlighted that Indonesia currently lacks a specific law governing the valuation profession, with existing regulations scattered across various provisions. This absence creates legal uncertainty compared to other financial support professions. A dedicated law, MAPPI believes, would solidify valuation reports as key references in tax, civil, banking, and insurance disputes, while also enhancing the international recognition of Indonesian valuation standards.

To align with global expectations, MAPPI has adopted International Valuation Standards (IVS) and is updating its standards to match IVS 2025. The society advocates for the accelerated and integrated discussion of the Valuers Bill alongside the IFC Bill. Key proposals include strengthening the recognition of valuation professional standards, establishing an independent supervisory body, and affirming the status of valuation reports in dispute resolution. "If the appraisers are strengthened by law, then the IFC can also be trusted," Budi concluded.