Jakarta. Finance Minister Purbaya Yudhi Sadewa said Indonesia's planned International Financial Center (PFII) will broaden the government's funding sources by attracting global investors to finance development projects and purchase government bonds directly.

The government is preparing legislation to establish the PFII as a dedicated financial hub aimed at channeling international capital into Indonesia while strengthening the country's position as a regional financial center.

"If we issue government bonds, they can buy them. Our financing sources will become more diversified, with investors from the United States, Japan, Australia, and China able to participate here, making our financing position stronger," Purbaya told lawmakers at the House of Representatives on Thursday.

Beyond purchasing sovereign bonds, investors will also be offered commercially viable development projects, including some under the sovereign wealth fund Danantara.

"The projects will be market-based, so we will offer investments that are attractive to them. Several Danantara projects are appealing, but there are also attractive opportunities outside Danantara," he said.

Purbaya said the PFII is part of the government's broader effort to build a stronger, more inclusive, sustainable, and globally competitive economy by deepening Indonesia's financial sector and expanding access to investment.

He said the financial hub is expected to serve as a catalyst for financial market development, innovation in financial services, investment growth, financing for priority sectors and national strategic projects, sustainable finance, and a greater contribution from the financial sector to economic growth.

The government is finalizing a bill on the PFII to provide the legal foundation for the initiative as part of Indonesia's financial sector transformation agenda.

The proposed law would establish the PFII as a special jurisdiction within Indonesia with a dedicated regulatory framework to support financial services, supporting industries, and other economic activities that contribute to the development of an international financial center.

The government conceived the PFII to deepen Indonesia's domestic financial markets and reduce reliance on conventional financing sources such as the state budget and bilateral foreign loans for large infrastructure and national strategic projects.

Through the integrated financial center, Indonesia aims to compete with established financial hubs such as Singapore, Hong Kong, and Dubai by creating an investor-friendly ecosystem capable of attracting global liquidity directly into the country. The initiative will be supported by Danantara, which is tasked with consolidating state-owned assets and developing investment-ready projects.

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