The Indonesian government has designated Bali as the site for the Indonesia International Financial Center (PFII), according to Coordinating Minister for Economic Affairs Airlangga Hartarto. The move aims to attract world-class investment by combining competitive regulations with a lifestyle-oriented environment, with a target to have all preparations ready before August 16.
Bali’s Selection as a Global Financial Hub
Minister Airlangga Hartarto stated on July 10, 2026, that Bali was chosen because global financial centers require more than just competitive regulations; they need an environment that supports investors. He noted that Bali is not too crowded, offering a lifestyle that is relatively less busy than other hubs.
Airlangga compared this approach to certain areas in Dubai that offer a similar balance of business and leisure. He highlighted Bali’s natural appeal, specifically mentioning its beaches and traditional dances as key advantages for the PFII.
Legal Framework and Competitive Benchmarks
The government is currently designing a legal system and incentive package intended to be on par with international centers like Singapore and Dubai. Airlangga pointed to Singapore’s success, noting that its financial center manages approximately US$ 5 trillion in assets, which are then distributed across ASEAN countries, including Indonesia.
According to Airlangga, the trust investors place in Singapore stems from its legal framework. The PFII is intended to serve as a similar vessel for investment by establishing a trustworthy legal environment.
Timeline for Implementation
The PFII’s legal foundation is currently moving through two stages. The draft law (RUU PFII) is being discussed in the DPR and is targeted for completion by the end of July.
Once the law is passed, the government will issue the necessary Government Regulation (PP) to formalize the location. Airlangga expressed hope that these steps will be completed so that everything is ready before August 16.
A possible next step involves the official rollout of the specific incentives and legal protections once the PP is signed, which may determine the speed at which global funds relocate to the island.
Frequently Asked Questions
Where exactly will the PFII be located in Bali?
The PFII will be located in Bali, but Minister Airlangga Hartarto specified it will be built separately and outside of the Sanur Health Special Economic Zone (KEK).
Why did the government compare the PFII to Singapore?
Minister Airlangga cited Singapore as an example of a successful financial center that manages US$ 5 trillion in assets, noting that investors rely on Singapore’s legal system.
When is the PFII expected to be ready?
The draft law is targeted for completion by the end of July, and the Minister hopes all preparations, including the Government Regulation, will be ready before August 16.
Do you believe a lifestyle-focused environment is as important as legal regulation for attracting global investors?
