Indonesia is preparing one of its most ambitious financial projects to date. The government wants the country to become more than just a destination for foreign investment. To achieve that goal, the government has started developing the Indonesian International Financial Center (PFII).
It also aims to position Indonesia as a global center where international wealth can be managed, including assets belonging to some of the world’s richest families.
The International Financial Center project in Indonesia is expected to establish international financial hubs in several locations across the country, following a model similar to the Dubai International Financial Centre (DIFC) in the United Arab Emirates.
The planned financial center is designed to serve as a hub for global capital, including family office funds owned by billionaires and ultra-wealthy families.
Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, believes Indonesia has the potential to attract as much as US$500 billion in foreign assets through the establishment of family offices. Based on an exchange rate of Rp17,800 per US dollar, that would be equivalent to around Rp8.9 quadrillion.
The amount highlights the scale of the government’s ambitions. At approximately Rp8.9 quadrillion, the projected inflow would far exceed the value of Indonesia’s annual State Budget (APBN). That is why PFII is being positioned as a strategic initiative to transform Indonesia into both an investment destination and a global financial management center.
Unlike a conventional business district, PFII is planned as a special financial jurisdiction with its own administrative and financial autonomy, supported by a dedicated legal framework.
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Under the initial proposal, financial activities within the zone would operate under regulations that are more closely aligned with international standards. This includes legal certainty, dispute resolution mechanisms, and tax policies tailored to global financial practices.
The government envisions PFII as a home for a broad range of international financial services. These include international banking, asset management, capital markets, insurance, reinsurance, fintech companies, special purpose vehicles (SPVs), wealth management services, family offices, and financing for strategic national projects.
The legal basis for creating PFII has already been included in Law No. 4 of 2026, which amended the Law on Financial Sector Development and Strengthening, commonly known as the P2SK Law.
Article 248A of the legislation identifies PFII as an instrument to promote sustainable economic growth, deepen Indonesia’s financial markets, and diversify the country’s economy.
The government’s next step is to finalize the dedicated PFII Bill, which has already been included in the 2026 Priority National Legislative Program (Prolegnas). According to the House of Representatives (DPR), drafting the bill is a direct mandate under the revised P2SK Law. The implementing regulations must be completed no later than three months after the law was enacted on June 17, 2026.
As Indonesia shapes its own international financial center, Dubai has become one of its closest reference points.
The Dubai International Financial Centre, or DIFC, is a specialized financial free zone located in the heart of Dubai. Established in 2004, it was created under Federal Decree No. 35 of 2004, while Federal Law No. 8 of 2004 established the legal foundation for financial free zones across the United Arab Emirates.
Those laws allow financial free zones to operate under their own civil and commercial legal systems. However, federal criminal laws, including anti-money laundering regulations, continue to apply throughout the jurisdiction.
DIFC covers approximately 110 hectares in central Dubai near Sheikh Zayed Road. Its landmark Gate Building serves as the center of the district, which was purpose-built as a concentrated hub for international financial services rather than a standard office complex.
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