TEMPO.CO, Jakarta - Indonesia is gearing up to attract investors to channel capital into the planned Indonesian International Financial Center (IIFC), according to the country's Finance Minister Purbaya Yudhi Sadewa.
Speaking in Jakarta on Thursday, Purbaya mentioned that the government is planning to ease immigration, employment, residency, licensing, and taxation requirements to draw investments into the IIFC.
He also proposed establishing a dedicated court to handle disputes related to the IIFC, emphasizing the importance of legal certainty.
“Among the most important factors in the success of an international financial center is legal certainty and the presence of an agile, professional dispute resolution mechanism trusted by international business actors,” he told Commission XI of the House of Representatives (DPR) on Thursday, July 2.
He added that the proposed court would be authorized to examine, hear, and rule on disputes arising from business activity conducted within the IIFC or related to the envisaged financial hub.
Purbaya emphasized that Indonesia has the strengths to play a greater role in the global financial ecosystem, citing the country’s large economy, sizeable domestic market, strategic geographic position, ample natural resources, and prospects for long-term growth.
However, Indonesia has not been able to fully capitalize on those advantages due to the absence of a robust, competitive international financial zone comparable to established financial hubs worldwide.
Bearing that in mind, the minister underscored the IIFC plan as a strategic move to develop a dedicated zone capable of catering to global financial service needs while driving the deepening of the national financial sector.
He further noted the IIFC is expected to encourage financial innovation, attract investment, expand financing for the real sector and national strategic projects, and boost the financial sector’s contribution to economic growth.
On the legal basis, the state treasurer pointed to Article 248A of Law No. 4 of 2026, which mandates the drafting of a bill on the IIFC.
The government and DPR have recently initiated deliberation on the bill, with legislation targeted for completion by August 2026.
Read: Minister Purbaya Channels Rp400 Trillion to State-Owned Banks
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