Finance Minister Purbaya Yudhi Sadewa said the proposed Indonesia International Financial Center (PFII) bill is a strategic step to strengthen Indonesia’s economic resilience and establish a globally competitive financial center (21/07).

Purbaya made the statement during a plenary meeting on the decision-making process for the PFII bill in Jakarta on Tuesday. He said Indonesia, as the largest country in Southeast Asia and a member of the G20, should have its own credible, independent, integrated, and globally competitive financial center.

“The draft law on PFII was created from the awareness that as the largest country in Southeast Asia and a member of the G20, Indonesia should have its own financial center that is credible, independent, and integrated as well as globally competitive,” Purbaya said.

PFII Aims to Expand Investment Access and Long-Term Financing

Purbaya explained that PFII would not replace the existing national financial system but would complement it by developing a world-class financial ecosystem.

The Finance Minister said PFII is expected to attract global investors and expand sources of long-term financing to support national development.

The establishment of PFII is part of efforts to strengthen Indonesia’s financial sector through an additional financial ecosystem that supports competitiveness at the global level.

Three Pillars Form Foundation of Indonesia International Financial Center

Purbaya stated that PFII would be developed through three main pillars.

The first pillar is increasing access to capital and investment. The second pillar focuses on strengthening financial innovation and governance, while the third pillar aims to improve competitiveness and national resource capacity.

The Finance Minister said the PFII bill includes provisions on general regulations, establishment, position, and objectives of the Indonesia International Financial Center.

The bill also covers business activities, institutional arrangements, PFII arbitration institutions, PFII courts, support from central and regional governments, tax facilities, special facilities, specific arrangements for PFII, and closing provisions.

“Key points of the PFII bill include general provisions, the establishment, position, and objectives of the Indonesia International Financial Center, business activities, institutions, PFII arbitration institutions, PFII courts, support from the central and regional governments, tax facilities and other special facilities, specific arrangements for PFII, and closing provisions,” Purbaya said.

Government Seeks DPR Approval for PFII Bill

Purbaya expressed hope that the House of Representatives (DPR RI) would approve the PFII bill as a joint commitment between the government and parliament.

He said the approval would support the development of a new architecture for Indonesia’s financial sector and strengthen Indonesia’s role in the global economy.

“The government expresses its gratitude for the support from the leadership of the DPR RI, the leadership and members of Commission XI, all DPR RI factions, and the PFII bill working committee. May Allah SWT, God Almighty, always provide guidance and protection to all of us in carrying out the mandate of the people, to realize an advanced, fair, and prosperous Indonesia,” Purbaya said.

PHOTO: MINISTRY OF FINANCE

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