Indonesia passes bill to create international financial centre

Indonesia's parliament unanimously passed a bill on Tuesday to create an international financial centre known as PFII. Finance Minister Purbaya Yudhi Sadewa told lawmakers the centre is expected to attract foreign capital flows and sustainable portfolio investment as a long-term source of financing, which he said would help expand Indonesia's economy and support national development.

Lawmaker Mohamad Hekal said the bill covers the institutional framework for the financial centre and tax incentives. He said an arbitration body and a special court authorised to examine and decide cases within the centre would also be established.

The text of the bill has not yet been made public. Bali had previously been proposed as a possible site for the centre, according to a May statement from the Coordinating Ministry of Economic Affairs.

President Prabowo Subianto has set a target for economic growth of eight percent by 2029, supported by increased public spending. Indonesia's economy grew 5.6 percent year-on-year in the first quarter of 2026, according to the national statistics agency.