Indonesia is preparing an ambitious new financial hub in Bali, and the government wants it to compete on an international level. The planned Indonesia Financial Center in Bali, or IFC, is being designed with a concept inspired by Dubai, complete with special legal rules and tax incentives aimed at attracting global capital.
Finance Minister Purbaya Yudhi Sadewa said the financial sector special economic zone will occupy around 100 hectares of land in Bali. The area is expected to operate under a separate legal framework tailored specifically for international financial activities.
“We will create something like Dubai, around 100 hectares or slightly more. Indonesia Financial Center in Bali will become a special economic zone. Certain common law regulations will apply there. Money coming from overseas into the area will not be taxed,” Purbaya said during the press conference on the Results of the KSSK Scale II Meeting 2026 in Jakarta on Thursday, May 7.
The government believes the tax exemption policy can help attract foreign capital without hurting state finances. According to Purbaya, the incoming funds would not simply remain idle inside the financial center. Instead, they are expected to support domestic investment financing.
Part of the funding could flow into projects managed through Danantara, particularly projects capable of generating strong returns. Foreign capital entering the IFC may also be invested in government bonds and state debt securities.
For the government, this approach could open access to a new financing source that is considered more sustainable and potentially cheaper than current funding options.
“So we will have a new financing source that may be cheaper than what we have now and make our financing more sustainable,” Purbaya explained.
At the moment, the regulatory framework for the Financial Sector Special Economic Zone in Bali is still being finalized. The government is preparing rules covering management structures, legal arrangements, and facilities designed to make the area attractive for international investors.
Danantara CEO Rosan Roeslani confirmed that a separate authority body will eventually be established to oversee the Indonesia Financial Center. He stressed that the center itself will not be managed directly by Danantara.
“There will later be a separate authority body for the center,” Rosan said while speaking at the Coordinating Ministry for Economic Affairs on Tuesday, May 5.
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Even so, Danantara is still expected to play an important role in supporting the development process. Rosan explained that the institution, as one of the initiators behind the project, may assist in both funding and policy preparation.
“In this case, we will also act as an initiator, possibly for the development of the financial center area itself,” he said.
Rosan, who also serves as Minister of Investment and Downstreaming, added that the government is currently mapping out what still needs to be prepared for the regulatory framework. This includes legal aspects as well as incentive structures that will support the future operation of the financial center.
“That is the focus of the discussion, including what tasks we still need to follow up on,” he stated.
The project reflects Indonesia’s broader effort to strengthen its position in regional and global finance. With Bali chosen as the location, the government appears to be aiming for more than just another special economic zone. The IFC is being positioned as a long-term gateway for international capital entering Indonesia.
