Indonesia proposes law to establish International Financial Center

..the proposed center would strengthen the financial sector’s contribution to Southeast Asia’s largest economy while supporting long-term economic growth and diversification.

Jakarta (ANTARA) - Indonesia on Tuesday proposed including a bill on the Indonesia International Financial Center (IIFC) in the 2026 National Legislation Program, aiming to strengthen the country's competitiveness as an international financial center and attract investment.

Deputy Minister of Law Edward Omar Sharif Hiariej told a parliamentary working meeting in Jakarta that the proposed law would serve as the legal basis for establishing the Indonesia International Financial Center (IIFC), in line with mandates under the Financial Sector Development and Strengthening Law.

"The first objective is to improve Indonesia's competitiveness as an international financial center; second, to encourage financial sector deepening and innovation; third, to attract investment and business players from both domestic and international financial sectors," Hiariej said.

He added that the initiative also aims to facilitate financing for the real sector, national strategic projects, sustainable financing, climate-related funding, infrastructure development, and other strategic financing needs.

The government said the proposed center would strengthen the financial sector’s contribution to Southeast Asia’s largest economy while supporting long-term economic growth and diversification.

"These are the key points underlying the urgency to establish the Law on the Indonesia International Financial Center," he said.

Hiariej noted that Law No. 4 of 2026 on Financial Sector Development and Strengthening requires that the IIFC be regulated through specific legislation, which must be enacted within three months after the law takes effect on June 17, 2026.

The IIFC is envisioned as a hub for financial services, financial technology development, and related support services, operating under principles of efficiency, transparency, and integrity.

Following the meeting, the House of Representatives' Legislative Body approved the government's proposal to proceed with deliberations on the bill under standard legislative procedures.

Legislative Body Chair Bob Hasan urged the government to ensure "meaningful public participation" during the legislative process.

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Translator: Fath Putra Mulya, Martha Herlinawati Simanjuntak

Editor: M Razi Rahman

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