Bali's Bid for International Financial Center Under Evaluation

Coordinating Minister for Economic Affairs Airlangga Hartarto has confirmed that the proposed Indonesian International Financial Center (PFII) in Bali is still undergoing evaluation, with no definitive location established as of yet. In a statement to the press on Thursday, August 20, 2026, Hartarto indicated that the project remains in its initial assessment phase.

When queried about potential sites within Bali, including North Bali, Kura-Kura, and Sanur, Hartarto provided scant details, merely noting that the land under consideration is owned by Danantara, a significant player in the Indonesian financial landscape. "No, the location is one of the sites owned by Danantara," he said, refraining from offering additional specifics.

The PFII, as proposed by President Prabowo Subianto, aims to establish a financial hub that spans both Jakarta and Bali, with Jakarta designated as the initial development site. The government envisions Bali as a burgeoning financial center, with the possibility of similar zones emerging in other regions of Indonesia, aiming to attract substantial foreign investment.

According to Hartarto, the PFII represents a pivotal transformation for Indonesia's financial sector, focusing on various domains such as investment, financial technology, arbitration, and commercial dispute resolution, which are aligned with international standards. "We'll see later. I haven't looked into it further yet," Hartarto added, underscoring the project's ongoing evaluation status.

The government is preparing a comprehensive suite of incentives aimed at enhancing the appeal of the PFII to global investors. These incentives include guarantees for capital and profit repatriation, targeted tax relief measures, golden visas, competitive licensing services, and stringent compliance standards designed to meet the expectations of international investors.

The establishment of the PFII is expected to encompass a wide array of financial activities, including banking, insurance, capital markets, derivatives, carbon trading, bullion, fintech, Islamic finance, family offices, treasury hubs, and asset management, thereby creating a diverse financial ecosystem.

As the government finalizes the technical Government Regulation (PP) for the PFII, initially set to be completed by August 16, 2026, stakeholders in the financial sector are closely monitoring developments. The successful implementation of this project could significantly elevate Indonesia's status in the global financial arena, positioning Bali as not only a tourist destination but also a key player in international finance.

While the project is still in its infancy, the ambitious plans reflect a broader strategy by the Indonesian government to diversify its economic portfolio and capitalize on the growing trend of global financial services. As the evaluation continues, the potential for Bali to emerge as a financial center remains a topic of significant interest and speculation among local and international investors alike.