Bank Indonesia backs financial hub to boost external resilience

Jakarta (ANTARA) - Bank Indonesia (BI) backed the government's plan to establish the Indonesian International Financial Center (PFII), saying the initiative could strengthen external resilience by attracting capital inflows and improving the country's balance of payments.

"The biggest challenge facing our economy is the external sector," BI Senior Deputy Governor Destry Damayanti said at the 2026 Investment Forum in Jakarta on Wednesday.

Indonesia continues to post a goods trade surplus but still runs a services deficit, weighing on the overall balance of payments, she said.

Damayanti said the PFII would strengthen the external sector while attracting more portfolio inflows and foreign direct investment into the real economy.

She said the benefits of the financial center would extend beyond its host region by encouraging broader investment across the national economy.

"Long-term investment in the real sector will strengthen confidence in our economy and generate wider economic activity," Damayanti said.

BI also supports the establishment of the Indonesian Resources Fund (DSI), which aims to integrate the management of Indonesia's natural resource exports.

The government expects the DSI to improve commodity trade governance by addressing practices such as under-invoicing and transfer pricing.

BI also expects the DSI, supported by a mineral exchange, to increase transparency in natural resource trading.

As a resource-rich nation, Indonesia could capture greater economic value by improving commodity trade governance, Damayanti said.

"With the DSI, especially if supported by a mineral exchange, price transparency will improve significantly," she said.

"Like a stock exchange, quoted prices, transaction values and traded volumes will be visible in real time," she added.

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Translator: Rizka Khaerunnisa, Cindy Frishanti Octavia

Editor: Rahmad Nasution

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