Danantara pledges support for international financial hub in Bali

Jakarta (ANTARA) - The sovereign wealth fund, Danantara, stated its readiness to support Bali in hosting the proposed Indonesia International Financial Center (IIFC) to strengthen the country’s foothold in the global financial network.

“The IIFC initiative is not just about developing a financial zone; it also serves as an effort to build the world’s confidence in Indonesia,” Danantara Chief Operating Officer Dony Oskaria said in Jakarta on Wednesday.

He noted that the government had designated the Dubai International Financial Center (DIFC) in the United Arab Emirates as a benchmark, recognizing its pivotal role in transforming Dubai into a globally renowned financial hub.

According to him, the DIFC offers a wide range of advantages, most notably corporate tax exemptions of up to 40 years.

He added that the financial hub is now home to more than 50,000 professionals, earning the moniker of "the Wall Street of the Middle East, Africa, and South Asia."

Oskaria, who also chairs the State-Owned Enterprises Regulatory Agency (BP BUMN), explained that Danantara envisions the planned IIFC in Bali emulating Dubai’s approach to attract global investments, deepen the domestic financial market, expand financing access, and strengthen Indonesia’s competitiveness in the international financial ecosystem.

To advance preparations for the IIFC, he convened a meeting on Tuesday (July 14) with Danantara senior officials, including Chief Investment Officer Pandu Sjahrir.

The discussion focused on investment strategies, measures to develop a financial ecosystem aligned with global standards, and steps to optimize Danantara’s role in developing assets, infrastructure, and supporting services for the IIFC.

“Through a competitive and globally standardized system, we aim to present more investments that can make tangible contributions to national economic growth,” Oskaria said.

He expressed confidence that sound synergy among stakeholders would pave the way for the IIFC to become a magnet for international investment, position Indonesia as a regional financial hub, and support sustainable economic growth.

The Indonesian government and parliament on June 23 agreed to include a bill on establishing the IIFC in the 2026 National Legislation Program (Prolegnas).

That day, Deputy Law Minister Eddy Hiariej said that sustainable economic growth and diversification, including through the financial sector, are essential to improving public welfare.

On that note, he deemed it vital to establish an international financial center capable of supporting Indonesia’s long-term economic growth.

He emphasized that the government is designing the center as an efficient, credible, and integrated hub for financial services and the development of related technologies.

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Translator: K. Izan, Tegar Nurfitra

Editor: Azis Kurmala

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