Indonesia Financial Center (PFII) Tracker: Where Things Stand
Updated: 5 days ago
BALI BUSINESS NEWS · TRACKER
Last updated: November 2, 2026
The law creating the Indonesia Financial Center is now official, but the Bali site is still open. Law No. 6 of 2026 on the Pusat Finansial Internasional Indonesia (PFII) was published at the end of October, with 73 articles covering everything from tax breaks to a dedicated court (Kontan). Jakarta will host the first zone. Bali is planned to follow, and the government has not yet chosen where on the island.
This page tracks every major step and is updated as news breaks. For the market backdrop, see our coverage of the October 16 MSCI selloff. Our coverage of the October 16 MSCI selloff
Status at a glance
Item | Status |
The law | Law No. 6 of 2026, 73 articles. Passed by parliament July 21, 2026, published late October 2026 |
First location | Jakarta |
Bali | Planned as the next location. Site not decided |
Bali candidates named | Kura Kura (Serangan), Sanur, North Bali. A Benoa area site and western Bali have also been mentioned |
Implementing regulations | Due within six months of promulgation, around April 2027. Being drafted |
Model | Dubai International Financial Center (DIFC) |
Market backdrop | MSCI is consulting on downgrading Indonesia until April 2027 |
Timeline
Date | Milestone |
May 2024 | Bill on an international financial center first proposed (Asia Times) |
April 2026 | President Prabowo announces plans for a special financial center. Bali emerges as a contender on Luhut Pandjaitan's recommendation (Indonesia Business Post) |
May 1, 2026 | Ministers Airlangga Hartarto and Rosan Roeslani visit Kura Kura Bali with Danantara leadership |
May 4, 2026 | Airlangga says Kura Kura is not the only option. Sanur, western Bali and a site near Benoa are also under review (Bisnis.com) |
July 10, 2026 | Airlangga says the Bali center will have its own zone, not inside the Sanur SEZ (Jakarta Globe) |
July 14, 2026 | Danantara pledges support for a Bali hub on the Dubai model |
July 21, 2026 | Parliament passes the PFII bill. Finance Minister Purbaya says no site is chosen and the PFII will not sit inside a special economic zone (ANTARA) |
August 14, 2026 | Prabowo names Jakarta as the first location, with Bali next |
October 16, 2026 | MSCI proposes downgrading Indonesia. The Jakarta index closes down 11.57% |
October 28, 2026 | Airlangga says implementing rules are being drafted, with Jakarta first and Bali later |
Late October 2026 | Law No. 6 of 2026 is published (Kontan) |
What the law says
Who runs it
The law sets up a PFII Governor, an Advisory Council, a PFII Council that sets strategy, a Management Agency that runs day to day operations, and its own Financial Services Authority to license and supervise businesses inside the zone (Kontan)..
Courts and disputes
A dedicated PFII Court sits within the general court system and has exclusive jurisdiction over business inside the zone. A separate PFII Arbitration Institute handles arbitration and mediation. Officials say contracts may be written in English, judges are appointed by the Supreme Court, and foreign legal experts may serve as ad hoc judges (ANTARA)..
Tax and other incentives
• Corporate income tax: a 100% reduction for businesses operating in the zone. Reports at the bill's passage put the tax holiday at 50 years.
• Individuals: 0% final income tax for qualifying financial experts and ad hoc judges.
• VAT, luxury goods tax and customs: exemptions for certain strategic goods and services, specified luxury housing, and imports for building the zone.
• Non tax benefits: immigration, residency, labor and licensing incentives, including a golden visa.
• Conditions: businesses must still meet reporting rules, and incentives can be revoked and repaid if conditions are not met.
What businesses can operate there
Banking, insurance, Islamic finance, capital markets, pensions, financing, fintech, family offices and investment management, plus businesses that support them (Kontan).
How locations are chosen
Each PFII is created by its own government regulation, proposed by the Finance Minister with a location, capital plan and feasibility study. More than one PFII is allowed. Article 3(5) says a proposed location may not be inside a special economic zone (Kontan)..
The Bali site question
This is the open question that matters most for Bali. Both Kura Kura Bali and Sanur are existing special economic zones. Kura Kura has held that status since 2023 (Setkab).. Under the final law, a PFII cannot sit inside one.
That does not rule Kura Kura out. Finance Minister Purbaya said in July that an existing zone's status is not a barrier and that a special economic zone could be dissolved if it is chosen. He named Kura Kura, Sanur and North Bali among the proposals and said the choice would favor the site that is fastest to build, cheapest for the state and most attractive to wealthy foreign investors (ANTARA).
Airlangga has leaned the other way, saying the Bali center will get its own zone rather than sit inside Sanur. The Finance Minister has the final say, and the answer will come in the government regulation that creates the Bali zone.
What it means for businesses in Bali
• Nothing changes yet. The incentives only apply inside a designated zone, and no Bali zone exists.
• The target market is finance. Banks, fund managers, family offices and fintech firms are the intended tenants, not general businesses or villa operators.
• Be careful with location claims. Until the government regulation names a site, any marketing that ties a property or project to the financial hub is speculation.
Concerns and criticism
• Tax revenue. Economist Achmad Nur Hidayat warned that a long tax holiday could erode revenue, invite profit shifting, and clash with the 15% global minimum tax (Kabar Bursa).
• Speed and transparency. The bill went through parliament in under three weeks and grew from 53 to 73 articles, with little public detail on its fiscal cost.
• Governance. Critics flagged a clause in the bill that would shield the management agency from bankruptcy, warning it could hurt confidence and Indonesia's standing with the Financial Action Task Force.
• Bali's readiness. Jakarta already has the depth for complex finance. Bali does not, and a downturn makes the second phase easier to delay.
• Market confidence. MSCI's proposed downgrade questions the transparency a financial center depends on. Its consultation runs until April 2027 (The Edge).
What to watch next
1. The government regulation creating the Jakarta PFII
2. Appointment of the PFII Governor and council
3. The government regulation naming the Bali site, and whether a special economic zone is dissolved to make way
4. The six month deadline for implementing regulations, around April 2027
5. MSCI's decision on Indonesia's market status after April 2027
Frequently asked questions
What is the PFII?
PFII stands for Pusat Finansial Internasional Indonesia, the Indonesia Financial Center. It is a special zone for financial businesses with its own regulator, court, arbitration body and tax incentives, set up under Law No. 6 of 2026.
Is the Bali financial hub confirmed?
Bali is confirmed as a planned location, but not as the first one. Jakarta comes first, and the government has not yet named a site in Bali. Each location must be set by a separate government regulation.
Will the Bali financial hub be at Kura Kura?
Not decided. Kura Kura, Sanur and North Bali have all been named as candidates. The law says a PFII cannot sit inside a special economic zone, so an existing zone like Kura Kura would have to give up that status, or the government would choose another area.
When will the rules be ready?
The law requires implementing regulations within six months of its promulgation, which points to around April 2027. Officials say the rules are being drafted now.
Do the tax breaks apply to businesses already in Bali?
No. The incentives apply to businesses operating inside a designated PFII zone. Until a zone is formally created, nothing changes for companies elsewhere in Bali.
This tracker is for general information only and is not legal, tax or investment advice.
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