As Indonesia moves forward with plans to establish an international financial center, the government is pushing back against concerns that the initiative could be linked to money laundering or illicit financial activities. Officials insist that the proposed Indonesian International Financial Center (PFII) is designed to attract legitimate global investment while maintaining compliance with international financial standards.
Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that the government’s efforts to bring more foreign capital into Indonesia should not be associated with money laundering practices. According to him, the initiative aligns with Indonesia’s longstanding commitment to the Anti-Money Laundering and Combating the Financing of Terrorism (AML-CFT) framework.
Indonesia’s position within the global financial compliance system has also strengthened in recent years. The country became a permanent member of the Financial Action Task Force (FATF) in 2023, a milestone that reflected years of work to meet international standards on anti-money laundering and counter-terrorism financing.
“Of course, if we are seeking to attract investment, it is not part of money laundering,” Airlangga told reporters at the Coordinating Ministry for Economic Affairs office in Jakarta on Wednesday (June 24, 2026).
The government’s vision for the PFII includes a financial center built on transparency and regulatory safeguards. Airlangga explained that the proposed framework would incorporate mechanisms designed to anticipate and mitigate risks related to money laundering, as well as funds or capital originating from activities connected to financial crimes.
To support the initiative, the government is currently preparing the Indonesian International Financial Center Bill. The proposed legislation has already secured a place in the 2026 National Legislative Program (Prolegnas), paving the way for further discussion and development.
Despite the government’s assurances, the PFII proposal has sparked debate among policymakers, economists, and financial regulators. The issue has also drawn attention from the Financial Transaction Reports and Analysis Center (PPATK), Indonesia’s financial intelligence agency.
Alongside the PFII, PPATK is closely monitoring discussions surrounding Danantara’s special bond issuances, known as the Patriot Bond and Merah Putih Bond. The agency has acknowledged that both the establishment of the PFII and the legal protections offered to buyers of these special bonds could affect how FATF views Indonesia’s membership status.
The concern carries significant weight because PPATK has spent years leading Indonesia’s efforts to achieve compliance with international Anti-Money Laundering and Counter-Terrorism Financing standards. The agency played a central role in helping Indonesia meet the requirements necessary to gain FATF membership.
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At the same time, the government continues to advance the PFII initiative and has not ruled out the possibility that Indonesia could eventually be perceived as a tax haven. This prospect has fueled further debate among observers and market participants.
Several economists have also raised concerns about the potential for so-called “dark funds” to flow into the Patriot Bond and Merah Putih Bond programs. Such warnings have added another layer of scrutiny to the broader discussion surrounding financial sector reforms and investment attraction strategies.
“We continue discussing this internally, including its impact on FATF’s perception because of our position as a permanent FATF member,” PPATK Chairman Ivan Yustiavandana said, as quoted by Bisnis.
The discussion is becoming increasingly important as Indonesia approaches a major international review. In 2029, FATF will conduct a Mutual Evaluation Review (MER) to assess the country’s compliance with the organization’s standards.
According to Ivan, several FATF member countries are expected to visit Indonesia directly as part of the on-site evaluation process. The review will examine how effectively Indonesia continues to implement international anti-money laundering and counter-terrorism financing standards.
“We have anticipated the implementation of the P2SK Law from now on through cross-agency coordination. It will certainly become one of FATF’s concerns going forward. We will provide comprehensive and thorough explanations regarding all aspects of Indonesia’s compliance with international standards issued by FATF,” Ivan said.
As preparations for the PFII continue, the government faces the challenge of balancing its ambition to attract more international investment with the need to preserve confidence in Indonesia’s commitment to global financial transparency standards. The debate surrounding the proposed financial center, Danantara’s special bonds, and future FATF evaluations is likely to remain a key topic in the years ahead.
