The Indonesian government has officially proposed the establishment of a specialized court to handle international business disputes. This strategic plan is outlined in the draft Bill on the Indonesian International Financial Center (IIFC), aimed at creating a more conducive and competitive investment climate on the global stage.
Minister of Finance, Purbaya Yudhi Sadewa, during a working meeting with Commission XI of the House of Representatives (DPR RI) on Thursday (2/7/2026), emphasized that the availability of a professional and efficient dispute resolution mechanism is a core pillar for the success of an international financial center. According to him, business confidence relies heavily on the speed and legal credibility in resolving cross-border commercial issues.
"This bill mandates the establishment of an IIFC court with full authority to adjudicate disputes related to business activities in the zone, as well as international commercial cases with legal ties to Indonesian territory," Purbaya said. This move is taken as a concrete effort by the government to provide strong legal certainty for foreign investors.
Furthermore, the government is optimistic that the presence of this specialized court will enhance Indonesia's competitiveness globally. With a legal framework on par with standards of other global financial centers, Indonesia is expected to attract more foreign capital and strengthen its strategic position as a regional financial hub.
