Financial Centre Draft Law Clears Stage I, Heads to Plenary

JAKARTA, DDTCNews - The government and the House of Representatives (Dewan Perwakilan Rakyat/DPR in Indonesian) Commission XI have approved the Draft Law on the Indonesian International Financial Centre (IIFC). The IIFC Draft Law will subsequently be enacted at the Stage II deliberation in the House Plenary Session.

Commission XI Chairperson, Mukhamad Misbakhun, said both parties approved the contents and substance of the IIFC Draft Law following a reading of the draft law, a report from the Commission XI working committee, faction statements and the government's presentation. The establishment of a legal framework for the IIFC is considered to be proceeding on schedule, namely no later than three months after Law 4/2026 was promulgated.

"As we have all heard, the government has also approved the IIFC Draft Law. To that end, we have agreed [the House and the government] to advance the deliberation of this IIFC approval law to Stage II," he said at a working meeting on Monday (20/7/2026).

On the same occasion, Minister of Finance, Purbaya Yudhi Sadewa, expressed his appreciation to Commission XI for its constructive, productive and effective collaboration in drafting and deliberating the IIFC Draft Law.

In his view, the IIFC Draft Law is critically important for strengthening and enhancing the competitiveness of Indonesia's financial sector. He expressed hope that this measure would reinforce the foundations of the national economy.

"The establishment of the IIFC is a strategic measure to serve as a catalyst for deepening the financial market, diversifying instruments and sources of financing, increasing investment and strengthening Indonesia's position as part of the global financial ecosystem," said the Minister of Finance.

Purbaya explained that the establishment of the IIFC aims to attract investment and financial sector entrepreneurs, both domestic and international, and to promote the deepening and innovation of the financial sector. It also seeks to facilitate financing for the real sector, national strategic projects, sustainable finance, climate, infrastructure and other forms of financing.

Beyond that, the establishment of the IIFC is also intended to promote equal economic opportunity, technology transfer, job creation and the enhancement of Indonesian human resource capacity.

The establishment of the IIFC also aims to facilitate and strengthen the contribution of the sharia financial sector, green economy, blue economy and industrial transformation to the national economy.

Further, the establishment of the IIFC is also intended to develop capital markets, financial technology, digital finance and internationally competitive financial market infrastructure.

"To achieve these objectives, the government and the House of Representatives are in agreement that the IIFC Draft Law focuses on several key regulatory provisions and amendments," said the minister of finance.

Purbaya outlined that the key regulatory provisions and amendments in the IIFC Draft Law include, among others, the establishment, domicile, objectives and institutional structure of the IIFC.

Further provisions also cover business activities within the IIFC as well as the granting of tax facilities and special facilities with a view to attracting investment.

"On behalf of the government, we accept the outcome of the working committee deliberations on the IIFC Draft Law and approve its advancement to Stage II deliberation at the DPR Plenary Session. May this shared endeavour serve as an important milestone in realising Indonesia as a globally competitive financial centre whilst strengthening the national economy," stated Purbaya. (rig)