Jakarta. President Prabowo Subianto has floated a plan to set up a “special financial center” as Indonesia intends to become a safe haven for investors amid the rising tensions in the Middle East. But an analyst said this plan should come with an independent regulator dedicated to this zone for it to actually work.

On Wednesday, Prabowo gathered senior government officials in the wake of the month-long Iran war that has fueled a worldwide energy crunch and uncertainties. In his hour-long live-broadcast speech, Prabowo said he sees dollar signs in the crisis, citing that investors move their assets out of the Gulf nations.

“Indonesia is among the countries considered the safest if World War III ever breaks out. Just see how many Russians and Ukrainians are in Bali. We are planning to set up a special financial center,” Prabowo said.

He went on to say that the government is currently looking for a location. Prabowo admitted that Luhut Binsar Pandjaitan — his top economic advisor and a former senior minister — had been nudging him into picking Bali. He revealed that Luhut had been trying to nudge him into forging ahead with this plan “for years”. And Gulf states — including the world’s financial powerhouse Dubai — find themselves dragged into the Iran war after Tehran fired attacks on US allies in the region.

“And look where we are now — where will the money in the Middle East go? Tell me a country that is currently not at war. Indonesia is one of the countries that is of interest [for investors],” Prabowo said.

He offered little detail on this proposed special financial center and did not give a timeline on when this hub would take shape. Bhima Yudhistira, the executive director of the economic think-tank Celios, said Indonesia could draw lessons from the Dubai Financial International Center (DIFC). The decades-old zone has the Dubai Financial Services Authority (DFSA), which is in charge of regulating the financial services conducted in or from the DIFC. This center has gained recognition as a leading financial hub for the Middle East, Africa, and South Asia region. 

“If we take a look at the DIFC, the key is in the independent and professional authority. Indonesia must have an authoritative body dedicated to making a financial center that has a good track record and of integrity,” Bhima told the Jakarta Globe via text on Thursday.

Just like the DFSA, Bhima hopes that its Indonesian counterpart enforces tough anti-money laundering regulations. Securing investors’ trust lies in whether Indonesia can ensure data security, robust financial infrastructure, and supportive regulations, according to the economist.

“Some financial centers have failed because they are deemed to be havens for money laundering and harboring funds for transnational terrorism. Predictable, consistent policies and political stability are key to building trust in financial centers,” Bhima said. 

The DIFC has 8,844 organically acquired active companies and 1,052 regulated firms as of 2025. The center also notched 2.13 billion AED 2.13 billion (nearly $580 million) in combined revenues last year. Its net profits also reached AED 1.48 billion (around $403 million).