Indonesia will launch its proposed Indonesia International Financial Center in Jakarta before expanding the project to Bali as part of a phased rollout over the next two to three years, senior government officials announced on Thursday.
Phased Rollout Plans for Jakarta and Bali
Chief Economic Minister Airlangga Hartarto stated that the government is prioritizing the location that is most ready for immediate operations. An official announcement will follow once preparations are finished.
“Several locations are being prepared. One of them is in Jakarta, where the building is already available. We will announce it once everything is ready,” Airlangga told reporters in Jakarta.
Danantara Indonesia Chief Executive Rosan Perkasa Roeslani added that the center will initially operate from Jakarta during a transition period. Following this phase, the project will expand to encompass both Jakarta and Bali.
“During the two- to three-year transition, we will start in Jakarta before further developing the financial center in Jakarta and Bali,” Rosan said.
Ecosystem Infrastructure and Leadership Appointments
The government intends to build a comprehensive financial ecosystem within the Indonesia International Financial Center. This framework is slated to include financial services institutions, arbitration bodies, and a dedicated commercial court.
Officials also plan to propose the appointment of officials to staff these new institutions to President Prabowo Subianto. For its initial operations, the financial center will utilize Danareksa Tower, which is a newly completed office building owned by the state investment group.
Did You Know? The initial operations for the Indonesia International Financial Center in Jakarta will be based at Danareksa Tower, a newly completed office building owned by the state investment group.
Investment Strategy and International Engagement
Financing for the project will draw from a combination of state budget funding and capital from Danantara. According to Finance Minister Purbaya Yudhi Sadewa, the sovereign investment fund is expected to supply the larger share of this capital.
Administrators plan to leverage the transition period to actively court international investors. Rosan noted that representatives have already introduced the financial center concept to 11 foreign investors during recent meetings held in Bali, describing the initial response as very positive.
Frequently Asked Questions
Where will the Indonesia International Financial Center first begin operations?
The center will initially launch and operate in Jakarta, utilizing the newly completed Danareksa Tower, before expanding to include Bali over a two- to three-year transition period.
What institutions are planned for the financial ecosystem?
The government plans to establish financial services institutions, arbitration bodies, and a dedicated commercial court within the Indonesia International Financial Center.
How will the project be funded?
The project will receive funding through a combination of the state budget and capital from Danantara, with the sovereign investment fund providing the larger share.
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