Indonesia seeks global funds with international finance hub

Jakarta (ANTARA) - Indonesia is accelerating plans to establish the Indonesia International Financial Center (PFII) to attract global capital seeking new destinations amid geopolitical uncertainty, a senior lawmaker said. Mohamad Hekal, deputy chairman of the House of Representatives' Commission XI, said the PFII initiative was driven by a limited window of opportunity as international funds, including family wealth, seek new investment bases. "The P2SK Law created the idea of PFII and requires its establishment through legislation within three months. The urgency is not the law itself, but the geopolitical situation," Hekal said in Jakarta on Monday. He said global funds could choose other countries if Indonesia failed to provide a new financial hub soon, and they might not return to consider Indonesia in the near future. The PFII is mandated under the Financial Sector Development and Strengthening Law (P2SK), which requires the government to establish the center. Indonesia aims to use shifting global economic and geopolitical conditions to attract international capital through PFII, strengthening its role as a regional financial center. Hekal said conflicts in the Middle East, the Russia-Ukraine war, and changes in the global economy had created opportunities for Indonesia to draw investment flows. He said PFII was part of Indonesia's broader transformation from a capital seeker into a global financial activity center. To attract investors, Hekal said PFII would have internationally competitive legal frameworks, including specialized dispute resolution, commercial courts with ad hoc judges, arbitration, English-language contracts, and compliance with global anti-money laundering and counterterrorism financing standards. The measures are expected to provide legal certainty and improve Indonesia's competitiveness against established global financial hubs. Permata Bank Chief Economist Josua Pardede said PFII could become a capital gateway that deepens domestic financial markets and expands long-term financing sources for national development. He said Indonesia should use global uncertainty to build a credible, transparent, and internationally aligned financial ecosystem. "PFII can attract global funds, deepen Indonesia's financial markets, and support strategic projects such as downstream industries, infrastructure, and energy transition," Josua said. "However, success depends on consistent regulations, legal certainty, professional governance, and transparency to build long-term investor confidence," he added.