Government and House to Draft Separate Law on Financial Center

JAKARTA, DDTCNews - Law 4/2026 concerning the Amendment to Law 4/2023 concerning the Development and Strengthening of the Financial Sector (pengembangan dan penguatan sektor keuangan/P2SK in Indonesian) does not contain detailed provisions on the establishment of a financial center or Indonesia's international financial center.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated the operation of the financial center would be regulated in greater detail under a separate law.

"As such, there will be a separate law," said Airlangga when questioned by journalists, as cited on Tuesday (23/6/2026).

As stipulated under Law 4/2026, the law concerning the administration of a financial center in Indonesia must be completed within 3 months from the time Law 4/2026 is promulgated.

According to Airlangga, the law concerning Indonesia's international financial center will be deliberated jointly with Commission XI of the House of Representatives (Dewan Perwakilan Rakyat/DPR in Indonesian) or the DPR's Legislation Body (Badan Legislasi/Baleg in Indonesian).

On another note, Law 4/2026 defines a financial center as a zone that has financial and administrative autonomy as well as certain legal specificities that adopt, incorporate, apply and/or align with international principles and/or standards.

Business activities within that zone encompass activities in the financial sector, financial sector support and other sectors. Indonesia's international financial center will ultimately be managed by the Indonesia international financial center board.

Entrepreneurs within that zone will receive special tax facilities as well as special tax treatment. Such facilities and special treatment are deemed necessary to achieve the objectives of establishing the financial center, namely to drive economic growth through the deepening and diversification of the national economy. (dik)