The government's plan to establish the Indonesia International Financial Center (PFII) has drawn critical attention from economic observers. Chief Economist of Trimegah Sekuritas Indonesia, Fakhrul Fulvian, emphasized that the competitiveness of the special economic zone cannot rely solely on tax discounts or fiscal incentives.
According to Fakhrul, the integrity of a global financial hub depends heavily on investor confidence in the prevailing legal ecosystem. He stressed that while incentives are an attractive supplement, guaranteed security for long-term capital placement remains the top priority for foreign investors looking to operate in Indonesia.
International investors generally conduct in-depth assessments of regulatory parameters before making commitments. Key indicators of interest include the quality of investor rights protection, efficiency of capital flows, ease of transactions, and the depth of the financial market itself. Without a solid legal foundation, efforts to attract capital inflows will face significant challenges.
As a strategic move, the government is currently preparing a comprehensive facilitation package, ranging from licensing simplification to labor and immigration rules. Proposals have even emerged to establish a specialized judicial body within the PFII area. This court is planned to have the authority to independently handle international business and commercial disputes, addressing market players' concerns over legal certainty.
Fakhrul welcomed the prospect of PFII being able to lower the funding costs of national strategic projects independently and sustainably. However, he cautioned that the zone's governance must maintain high transparency and healthy market mechanisms, ensuring that PFII acts not merely as an administrative channel, but as a globally competitive financial hub.
