Indonesia House of Representatives approved legislation establishing the Indonesia International Financial Centre (Pusat Finansial Indonesia Internasional/PFII). The newly passed law introduces one of the country’s most ambitious tax incentive packages to date, offering substantial benefits for businesses, foreign financial professionals, overseas investors, and eligible Golden Visa holders operating within the designated financial centre.
The legislation forms part of Indonesia’s broader strategy to attract long-term foreign investment, strengthen its financial services industry, and compete with established international financial centres across Asia. While the exact location of the new financial hub has yet to be announced, Bali’s Kura Kura Special Economic Zone remains one of the locations under consideration.
For foreign investors and global businesses already operating, or planning to establish a presence, in Indonesia, the new framework could create significant opportunities once further implementing regulations are issued.
What is Indonesia’s New International Financial Centre?
The newly approved law establishes a dedicated financial zone operating under a separate regulatory framework designed specifically for international financial activities.
Within the financial centre, qualifying businesses may benefit from:
- A 100% corporate income tax exemption
- Personal income tax exemptions for eligible foreign financial-sector professionals
- Non-resident tax treatment for qualifying Golden Visa holders connected to the zone
- Exemptions from withholding tax on eligible overseas investment income
- Relief from Value Added Tax (VAT), Luxury Goods Sales Tax, and certain import duties
- Additional fiscal incentives that may be introduced through future government regulations
Rather than functioning as a conventional Special Economic Zone, the financial centre will operate as a specialised financial jurisdiction with greater administrative autonomy.
A Dedicated Financial Hub for International Business
The PFII has been designed to attract international financial institutions while limiting its impact on Indonesia’s domestic financial market.
Businesses operating within the centre will generally focus on international financial activities such as:
- Banking
- Insurance
- Capital markets
- Pension services
- Bullion trading
- Family offices
- Accounting
- Legal advisory
- Financial consulting
To preserve the distinction between the international financial centre and Indonesia’s domestic economy, companies established within the zone will not be permitted to raise funds from the Indonesian public or provide services directly to domestic consumers outside the designated area.
The financial centre will also have its own governance structure, including a governor appointed by the President, a dedicated arbitration body, and a specialised court to resolve disputes.
What Does This Mean for Indonesia’s Golden Visa Programme?
One of the most notable features of the new legislation is its connection to Indonesia’s Golden Visa programme.
Foreign nationals holding a qualifying Golden Visa that is linked to the financial centre may receive non-resident tax status, allowing them to benefit from favourable tax treatment while residing within the designated jurisdiction.
Although further implementing regulations are expected, the inclusion of Golden Visa holders signals the government’s intention to use immigration policy alongside fiscal incentives to attract internationally mobile investors and financial professionals.
A Brief Overview of Indonesia’s Golden Visa
Launched in July 2024, Indonesia’s Golden Visa programme was introduced to encourage long-term foreign investment by offering extended stay permits to eligible investors, entrepreneurs, executives, and global talent.
Currently, eligible individual investors may obtain:
- A five-year Golden Visa by investing at least US$350,000 in qualifying Indonesian government bonds, public company shares, or bank deposits.
- A ten-year Golden Visa with a qualifying investment of US$700,000.
Corporate investors and company directors may also qualify under separate investment thresholds.
Unlike citizenship or permanent residency programmes offered in some jurisdictions, Indonesia’s Golden Visa provides long-term residency but does not automatically grant permanent residence or Indonesian citizenship. Instead, it offers greater flexibility for foreign investors who wish to establish a long-term presence while contributing to Indonesia’s economy.
As of 18 May 2026, Indonesia’s Golden Visa programme had reportedly generated approximately IDR 52.1 trillion in investment through 1,274 permits, with the majority of investment originating from corporate applicants.
Requirements to apply for a Golden Visa Indonesia
Questions Remain Over Implementation
While the legislation has now been approved, several important details have yet to be finalised.
The government has not officially announced where the International Financial Centre will be located, although several locations in Bali have previously been discussed. The implementing regulations will also determine:
- Which investors will qualify for the new tax incentives;
- How Golden Visa holders will obtain non-resident tax treatment;
- Eligibility criteria for businesses operating within the financial centre; and
- The official launch timeline for the new jurisdiction.
These details are expected to be introduced through future government regulations.
What This Means for Foreign Investors
The establishment of the International Financial Centre reflects Indonesia’s broader ambition to strengthen its competitiveness as a destination for international capital.
For businesses considering regional expansion, the combination of favourable tax incentives, investment-friendly immigration policies, and ongoing regulatory reforms could make Indonesia an increasingly attractive jurisdiction for long-term investment.
However, foreign investors should also recognise that eligibility for tax incentives, company establishment, immigration status, licensing, and compliance obligations will continue to be governed by Indonesia’s evolving legal framework. Professional guidance remains essential to ensure businesses structure their investments appropriately from the outset.
Stay Updated and Stay Compliant with LMI Consultancy
Indonesia’s immigration, investment, tax, and corporate regulations continue to evolve as the government introduces new initiatives to attract international businesses and investors. Staying informed is essential for companies and individuals seeking to establish or expand their presence in Indonesia while maintaining full regulatory compliance.
At LMI Consultancy, our specialists provide comprehensive support across immigration, company incorporation, investor visas, Golden Visa applications, business licensing, tax compliance, and ongoing corporate advisory services.
Stay updated and stay compliant with Indonesia’s latest immigration and business regulations with LMI Consultancy. Our team is ready to help you navigate regulatory changes and build your investment journey in Indonesia with confidence.
