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Indonesia advances plan for financial centre with new legal framework
The legislation sets up an arbitration body and a special court to handle disputes tied to the planned financial hub, a key governance step for attracting foreign investors.
Indonesia has taken a regulatory milestone toward building a financial centre intended to rival Singapore, Hong Kong, or Dubai, after parliament passed enabling legislation on Tuesday.
According to SCMP Economy, the new framework is designed to support President Prabowo Subianto’s push to draw more foreign capital into Southeast Asia’s largest economy, with a stated goal of lifting growth toward 8.0% by the end of his term in 2029.
The outlet reports that the centre’s “real work” of persuading global investors has not yet begun, because key areas including tax incentives, investor requirements, and regulatory safeguards still need to be finalized.
Indonesian Investment Minister Rosan Roeslani said the legislation filled a gap, as Indonesia previously lacked a dedicated centre meeting governance benchmarks expected by global financial institutions, and it will include an arbitration body and a special court to settle disputes, plus oversight and a dedicated governmental body accountable to the president and parliament.