Indonesia's International Financial Center Bill Set for Plenary Approval

Indonesia is set to establish its International Financial Center (IFC) following the agreement between the government and the House of Representatives (DPR) to pass the International Financial Center Bill (RUU PFII). The bill is scheduled for ratification in a plenary session on Tuesday, July 21, 2026.

This agreement was reached after an final meeting at Commission XI of the DPR. The bill, which has been in development since July 2, 2026, by a special working committee, consists of 10 chapters and 73 articles. It aims to create a conducive environment for international financial activities.

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The government and the DPR believe that the RUU PFII focuses on several main points of regulation and changes.

Key provisions of the bill include the establishment of the IFC's position and objectives, along with its governance structure. This involves setting up a Deliberative Council, the IFC Council itself, a Management Agency, and a Financial Services Supervisory Agency. An IFC Arbitration Agency will also be formed to provide an alternative dispute resolution mechanism.

To attract significant investment, the RUU PFII outlines a range of tax incentives, including exemptions or reductions for income tax (PPh), value-added tax (PPN), luxury goods sales tax (PPnBM), and customs duties. Additionally, special facilities related to golden visas, immigration, employment, licensing, and residency are included. The IFC will also operate with English as its official language for business activities and utilize foreign currency, adopting international legal principles and practices.

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For that reason, it will be brought to the second level of discussion in the DPR RI Plenary Session, which God willing will be held tomorrow, July 21, 2026.