Jakarta – The House of Representatives of the Republic of Indonesia (DPR RI) officially passed the Bill on the Indonesian International Financial Center (IIFC/PFII) into law during the 26th Plenary Meeting of Session V for the 2025–2026 Legislative Year at the Nusantara II Building, Senayan, Jakarta, on Tuesday (July 21, 2026). The approval was granted after all political party factions declared their agreement on the bill, which fulfills the mandate of Law No. 4 of 2026 on the Amendment to the Law on the Development and Strengthening of the Financial Sector (P2SK).

Speaker of the DPR RI, Puan Maharani, who presided over the session, sought the consent of all assembly members before tapping the gavel to signify approval. "Now, I ask all session participants once again: Can the Bill on the Indonesian International Financial Center be approved and enacted into law?" asked Puan, which was met with a unanimous chorus of "Agreed" from the plenary attendees.

Following the enactment, Puan expressed her appreciation to the government and the DPR RI for successfully completing the deliberation of the bill. She extended her gratitude to the Minister of Finance, the Minister of Law, the Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM), the Minister of the State Secretariat, and the entire government apparatus for their active participation throughout the process.

She also commended the leadership and members of Commission XI of the DPR RI for concluding the discussions on the IIFC Bill so it could proceed to the decision-making stage in the plenary meeting. "We express our gratitude and appreciation to the leadership and members of Commission XI of the DPR RI, who have smoothly completed the deliberation of this bill," she stated.

Furthermore, she appreciated the various stakeholders who provided input during the drafting process. In her view, the perspectives and suggestions from stakeholders were vital in refining the substance of the legislation.

"We would also like to thank the various parties who provided their insights and recommendations, allowing this law to be successfully finalized," concluded the granddaughter of Indonesia's Proclamation Leader.

For context, the Law on the IIFC was drafted as the legal foundation for establishing an international financial center in Indonesia, as mandated by the P2SK Law. The enactment of this regulation is expected to serve as a stepping stone for Indonesia to bolster the competitiveness of its financial services sector while attracting a greater volume of international investments and financial activities to the country.

The establishment of the IIFC is considered a strategic step to fortify Indonesia's standing in the global financial arena. Historically, international financial activities in the Asian region have been concentrated in a few established financial hubs. Through the IIFC, Indonesia aims to build a financial services ecosystem capable of attracting global financial institutions and investors, thereby bringing more international financing, investment, and transactional activities into the country.

For the public, the presence of the IIFC is expected not only to benefit the financial industry but also to drive more inclusive economic growth. Inflows of new investment have the potential to create jobs, expand access to financing for businesses—including Micro, Small, and Medium Enterprises (MSMEs)—enhance the national financial sector's competitiveness, and boost state revenue in the long run. The international financial center is also anticipated to accelerate the transformation of Indonesia’s financial system into a more modern, efficient, transparent, and internationally compliant model.

During the deliberation process, the Working Committee (Panja) for the IIFC Bill held a series of public hearings with diverse stakeholders, ranging from national banks, financial services associations, and capital market players to academics and legal experts. Discussions focused on strengthening the IIFC's institutional design, governance, incentive structures, oversight mechanisms, and legal certainty for investors.

The government is also preparing derivative regulations in parallel with the law's passage to ensure the IIFC can be implemented immediately once the law officially takes effect. Substantively, the law governs various fiscal incentives, the establishment of a zone management institution, international commercial dispute resolution mechanisms, and the implementation of international standards regarding Anti-Money Laundering (AML), tax information exchange, and global compliance principles.

Industry players and academics had previously recommended that the IIFC maintain a competitive advantage over other international financial hubs while balancing investment incentives, legal certainty, good governance, and the protection of national interests. With the passage of this law, Indonesia is expected to possess a robust legal foundation to build an international financial center capable of deepening national financial markets, attracting high-quality investment, boosting economic competitiveness, and delivering tangible benefits to the public. (um)