President Prabowo Accelerates Establishment of Indonesia International Financial Center to Strengthen Investment Competitiveness
President Prabowo Subianto, on Thursday (7/23) led a limited meeting with several ministers of the Red-and-White Cabinet at the Presidential Palace in Jakarta. One of the topics discussed at the meeting was accelerating the establishment of the Indonesia International Financial Center (IIFC) to strengthen Indonesia’s competitiveness as an investment destination and international financial service center.
Minister of Investment and Downstream Development/Head of the Investment Coordinating Board (BKPM) who also serves as Head of BPI Danantara, Rosan Roeslani, said that President Prabowo ordered to continue the establishment process of the Indonesia International Financial Center after its legal basis has been approved by the House of Representatives (DPR).
“The plan for establishing the Indonesia International Financial Center has been approved by the House of Representatives (DPR), and the President has requested immediate action. We plan to build it in Bali, but it should be prepared around two or three years to become an international-standard financial center that can attract investors,” Rosan said in a press statement to the media after the meeting.
He said the Government has received a very positive response from investors for the plan. He said that a few days earlier, he had met with several investors in Bali to present the plan.
“A few days ago, I was in Bali to meet with 11 investors from family offices and others, and the responses have been very positive regarding the future financial center in Indonesia,” he said.
He said that during the transition period leading to the development of the main area in Bali, the Government will begin operations of the Indonesia International Financial Center in Jakarta. This transition period is expected to last two to three years while various institutional arrangements and supporting infrastructure are prepared.
“During this transition period, in the next two or three years, it will be built first in Jakarta before being further developed, possibly in Jakarta and also in Bali,” said Rosan.
To support the initial implementation phase, the Government has prepared a building that will be used as the operational location in Jakarta, adding that Danantara will act as the regional developer, while the management of the Indonesia International Financial Center will be led by the regional head and a governor, who will be responsible for establishing all systems and governance so that the financial center can operate optimally.
“Danantara acts as the regional developer, while the financial center will be led by the regional head and the governor, who will also set up all the necessary equipment so that the financial center can function properly and correctly,” Rosan said.
The establishment of the Indonesia International Financial Center serves as the Government’s strategic steps to strengthen the national investment ecosystem. Through accelerated establishment of the international-standard financial service center, President Prabowo hopes that Indonesia will become more competitive in attracting global investment, expanding access to financing, and encouraging sustainable economic growth. (BPMI of Presidential Secretariat) (JAS/LW)
