Indonesia Prepares Implementing Rules for International Financial Centre

Key Takeaways

• Indonesia is drafting implementing regulations for the Indonesian International Financial Center (PFII), officials confirmed on October 28, 2026.
• Jakarta is the initial location, with Bali a possible future location, under a directive issued in August 2026.
• The model follows the Dubai International Financial Center (DIFC), with English-language contracts and common law elements.
• The PFII framework comprises an Advisory Council, a PFII Council, a Management Agency, a Financial Services Supervisory Agency, a specialized PFII Court, and an Arbitration Center.
• Planned incentives include golden visas, streamlined licensing, and capital and profit repatriation guarantees.
• Anti-money laundering rules, beneficial ownership transparency, and international tax information-sharing standards will remain in force.

What Is the Indonesian International Financial Center?

How could Indonesia's financial centre regulations shape opportunities for investors in its planned international hub? In this article, we examine the Indonesian International Financial Center (PFII), its rollout, legal framework, incentives, and compliance requirements. On October 28, 2026, officials at the Coordinating Ministry for Economic Affairs confirmed that the hub's detailed rules were being drafted.

The head of state announced the project in August 2026, identifying Jakarta as the initial location and Bali as a possible future location. Development is to begin in Jakarta, which officials chose in part because of its readiness as a global city.

The PFII is modeled directly on the Dubai International Financial Center (DIFC), which reported 1,134 regulated financial services firms at the end of June 2026. Work is also under way on the regulatory infrastructure, supporting rules, and specialist staff needed to operate the hub.

The detailed rules will be important to turning the government's commitment into an operating financial district. Their preparation is therefore a significant stage in the project.

How Will Disputes Be Settled Inside the Hub?

A dedicated legal system sits at the heart of the design. Officials describe a two-tier system for settling disputes, in which a case can be appealed only once. The structure is intended to keep commercial disputes fast and final.

Alongside the PFII Court's regular bench, ad hoc judges may be drawn from respected legal experts in Indonesia and abroad. That could give international counterparties a more familiar bench.

The legal design borrows from international practice, including features of common law. Parties inside the hub will be able to sign contracts in English and rely on commercial law principles and international standards.

For investors accustomed to common law contracting, this marks a meaningful shift from Indonesia's civil law court tradition. Capping appeals at one round is intended to support commercially predictable outcomes. Both features are hallmarks of the DIFC model the government is following.

Planned Sectors and Investment Incentives

One supervisor is meant to oversee a wide mix of financial businesses in the hub. Planned coverage includes:

• Banking and insurance
• Capital markets and derivatives
• Carbon exchanges and bullion trading
• Fintech and Islamic finance
• Family offices, treasury centers, and investment management

The PFII framework comprises an Advisory Council, a PFII Council, a Management Agency, a Financial Services Supervisory Agency, a specialized PFII Court, and an Arbitration Center.

To compete for international business, the government plans to offer golden visas, simpler licensing and guaranteed repatriation of capital and profits. Repatriation certainty is a key consideration for treasury centers and fund managers that move money across borders regularly.

Investors entering the wider Indonesian market already begin with a company registration number (NIB) issued through the OSS licensing system. If implemented, streamlined licensing inside the hub could simplify entry for financial sector participants.

What Does the PFII Mean for Foreign Investors?

For multinationals and financial institutions, the project signals Indonesia's ambition to compete for regional treasury, fund administration, and family office activity. Southeast Asia's largest economy has long watched that business settle offshore. An onshore hub with proposed repatriation guarantees could bring part of it home.

The sector list also reads like a modern capital markets wishlist. Carbon exchanges and bullion trading tie into Indonesia's commodity strengths. Islamic finance and family offices target Gulf and regional Asian wealth. Fintech inclusion opens the door for technology firms serving banks and fund managers.

Officials have framed the PFII as a compliant center rather than a low-transparency jurisdiction. Money-laundering controls, disclosure of beneficial owners and cross-border tax information exchange will all continue to apply in full. Law No. 6 of 2026 provides tax facilities for eligible PFII participants, including a 100% corporate income tax reduction subject to applicable conditions. That compliance stance is consistent with measures already visible in Indonesia's digital tax collection from foreign technology companies.

No effective date for the implementing regulations has been announced as of November 1, 2026. Businesses in banking, capital markets, fintech, and professional services should monitor announcements from the Coordinating Ministry for Economic Affairs and the Financial Services Authority (OJK). As a Corporate Services Provider managing regional expansions, we help clients track these developments and position their Indonesian entities ahead of the hub's opening.

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