Jakarta (VNA) - Indonesia's parliament on July 21 approved a bill establishing the Indonesia International Financial Centre (PFII), a move expected to attract stronger foreign capital inflows and provide fresh momentum for economic growth in Southeast Asia's largest economy.
According to Indonesian Finance Minister Purbaya Yudhi Sadewa, by attracting sustainable foreign direct investment and high-quality portfolio inflows, the bill aims to expand the economy and provide the long-term financing needed to hit the country's growth target.
He added that a larger economy would provide Indonesia with greater resources to sustain long-term national development.
The bill was passed unanimously, creating the legal framework for the new financial centre and introducing a range of tax incentives designed to enhance its appeal to international investors.
Lawmaker Mohamad Hekal said the legislation also provides for the establishment of an arbitration body and a specialised court to handle disputes arising from activities within the financial centre. The full text of the bill has yet to be released.
Earlier, Indonesia's Coordinating Ministry for Economic Affairs proposed the resort island of Bali as one of the potential locations for the international financial centre.
The establishment of the PFII forms part of President Prabowo Subianto's strategy to achieve 8% economic growth by 2029, driven by expanded public investment and stronger international capital inflows. According to Statistics Indonesia, the country's economy grew 5.6% year-on-year in the first quarter of 2026./.
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