IIFC Draft Law Near Completion, MoF Targets IDR500 Trillion Capital
JAKARTA, DDTCNews - The Ministry of Finance (MoF) believes that the establishment of the Indonesian International Financial Centre (IIFC) will attract stated capital worth IDR300 trillion to IDR500 trillion.
To attract such capital, Director General of Financial Sector Stability and Development, Herman Saheruddin, stated that the IIFC will offer competitive incentives and regulations as well as unique characteristics not found in the financial centres of other countries.
"The point is that we can compete with other financial centres. It's just that Indonesia is distinctive. It's not purely a financial centre. We have enormous resources," said Herman, as quoted on Thursday (9/7/2026).
Foreign financial institutions operating within the IIFC will be permitted to provide financing for projects related to natural resources in Indonesia without being bound by regulations outside the IIFC.
"At present, if foreign parties wish to finance our projects, they must comply with various domestic regulations. If speed is the priority, we will provide a limited special zone where international standards apply," said Herman.
On another note, the government and the House of Representatives (Dewan Perwakilan Rakyat/DPR in Indonesian) are currently deliberating the IIFC Draft Law as a follow-up to Law 4/2026. The said Draft Law is targeted for completion by the end of this month.
The IIFC will become a territory with financial and administrative autonomy as well as certain legal specificities that adopt, incorporate, implement, and/or align with international principles and/or standards.
The IIFC Draft Law contains a range of facilities covering immigration, residency, employment, permits and taxation. Further, the IIFC Draft Law also provides for the establishment of a dedicated court with jurisdiction to examine, adjudicate and rule on disputes relating to business activities within the IIFC. (dik)
