The government's plan to position the Danantara Investment Management Agency as the primary capital backer in the establishment of the Indonesian International Financial Center (PFII) is currently under sharp scrutiny. Experts warn that this step is not merely a regulatory matter, but an institutional investment gamble that demands far stricter standards of governance and risk management.
Syafruddin Karimi, a Professor at the Faculty of Economics and Business, Andalas University, emphasized that investing in a financial center has a risk profile that is fundamentally different from the real sector. According to him, market trust is the key determining factor. If the government is not careful, this project has the potential to damage Danantara's balance sheet and credibility in the eyes of global investors, especially if the region is later perceived as a loophole for tax avoidance or round-tripping transactions.
To mitigate potential failures, observers suggest a transparent independent feasibility study, clear exposure limits, and the implementation of a measured exit strategy. The involvement of global private capital is considered crucial so that the risk burden is not entirely borne by state entities, thereby creating a competitive and accountable ecosystem.
On the other hand, the government, through the Coordinating Ministry for Economic Affairs, continues to expedite the legislative process so that the PFII Law can be completed before mid-August 2026. Bali is projected to be a strategic location for this financial center, with the hope that the region can attract high-quality foreign direct investment (FDI), rather than just facilitating the turnover of existing domestic funds.
The Financial Services Authority (OJK) has also reminded of the importance of synchronizing authority between the PFII Financial Services Supervisory Agency (LPJK) and domestic regulators. Solid coordination is deemed absolutely necessary to ensure that the space for financial innovation remains within the corridor of prudential principles, in order to maintain overall national financial system stability.
