Indonesia’s New Financial Centre to Attract USD 27.8 Billion in Investment
Indonesia is moving forward with a major plan to attract global investment by establishing an international financial centre. The government estimates the project, which has now been legally authorised following parliamentary approval, could bring in up to 500 trillion rupiah, or roughly USD 27.8 billion . This initiative is a key part of President Prabowo Subianto’s strategy to boost economic growth to 8% by 2029 . The law, passed on July 21, 2026, creates the framework for a specialised financial ecosystem with its own court, arbitration body, and regulatory oversight .
The core idea is to offer incentives and legal certainty to attract global banks, wealth management firms, and family offices. Indonesia aims to reduce its reliance on offshore centres like Singapore and instead capture a share of the trillions of dollars held by the world’s richest families. Parliament deputy Mohamad Hekal noted that 65% of the USD 3.2 trillion held in family offices globally is looking for a new home, a target Indonesia hopes to capture .
To be competitive, the new centre will offer significant tax breaks, including a 50-year corporate income tax holiday for qualifying investors . It will also allow for the use of foreign currencies in business transactions, a departure from the rule that the rupiah was the sole legal tender . To ensure legal confidence, a special PFII court and arbitration institute are being established to handle commercial disputes according to international standards, with provisions allowing English in contracts .
President Prabowo has announced that the first centre will be in Jakarta, with a second location to be opened in Bali . This decision comes after initial speculation, with Bali often cited as a potential site given its international connectivity and tourism profile . The government believes these locations will provide the necessary infrastructure and global appeal to make the project a success. A supervisory board and a new governmental body will be set up to oversee the centre, reporting directly to the president and parliament .
For businesses and investors, this development signals a significant shift in Indonesia’s financial landscape. The initiative is not just about attracting capital; it aims to ensure major Indonesian transactions are settled within the country and to provide long-term financing for large-scale national projects . While the full details of the incentives and implementation are still being drafted, the legal foundation is now in place for what could become a key financial hub in the region.
