Jakarta. The government stands firm in its plan to establish an international financial center in Bali, which will offer tax breaks and a special legal framework as the country seeks to attract more foreign capital and channel funds into commercially viable strategic projects.

Chief of Economic Affairs Minister Airlangga Hartarto said the government is finalizing the bill on the Indonesia International Financial Center (PFII) while simultaneously preparing implementing regulations through a government regulation.

The government and the House of Representatives are currently deliberating the PFII bill, with lawmakers targeting its completion by the end of July 2026 and implementation by the end of the year.

Airlangga said Bali was chosen because of its global appeal as a tourism destination and its existing infrastructure, including special economic zones (SEZs) focused on tourism and healthcare. The island currently hosts the Sanur SEZ and Kura Kura Bali SEZ.

“In parallel, we are preparing a government regulation designating the area, which will be in Bali. When we talk about a financial center, lifestyle is also an important consideration, particularly a relatively less hectic environment. Bali is one of the places that can offer that, along with first-class healthcare facilities. We already have the Sanur SEZ,” Airlangga told reporters at the Economic Affairs Ministry's office in Jakarta on Friday.

Addressing concerns over potential overlap between the PFII and existing SEZs, Airlangga said the government would establish a separate designated area for the financial center.

“There will be no overlap. It will not be within the Sanur SEZ but will have its own special economic zone,” he said.

The government expects the PFII to boost foreign investment inflows by offering incentives designed to make it easier for investors to manage and deploy their capital. These include corporate income tax exemptions, income tax exemptions for foreign workers, and a special legal framework governing activities within the financial center.

Singapore has consistently ranked among Indonesia's largest sources of foreign direct investment. According to data from the Investment Coordinating Board (BKPM), investment from Singapore reached $4.6 billion in the first quarter of 2026.

“Singapore is one of Indonesia's largest sources of investment because investors trust and rely on its legal system. We hope that with the financial center in Bali, funds can flow into the center and then be invested in various countries, including Indonesia itself,” Airlangga said.