Law 6/2026 creates the Indonesia International Financial Center (PFII): a special financial zone with its own court, English as its language and income-tax facilities of up to 50 years — in force since 19 August, but the implementing regulations and the zone itself are still to come

Law No. 6 of 2026 on the Indonesia International Financial Center (Pusat Finansial Internasional Indonesia, PFII) was ratified and promulgated on 19 August 2026 (State Gazette 2026 No. 111) and entered into force on promulgation. The DPR passed it on 21 July 2026. It is a framework law of 10 chapters and 73 articles: it lets the government establish one or more financial centres by Government Regulation, and it sets out their governance, a dedicated arbitration institution and court, income-tax, VAT and customs facilities, English as the working language, and a foreign-currency regime. We confirmed the text on 8 November; it was widely reported only from about 30 October, so this entry is published after the fact. Nothing operates yet: we found no Government Regulation establishing a PFII and no implementing regulation, which the law says are due within six months of promulgation, that is by about 19 February 2027. President Prabowo said on 14 August that the first location is Jakarta, with Bali next.

Key points

• Source and dates: Undang-Undang Nomor 6 Tahun 2026 tentang Pusat Finansial Internasional Indonesia, ratified and promulgated 19 August 2026, State Gazette (Lembaran Negara) 2026 No. 111, in force on promulgation (Article 73). The DPR passed it at its plenary session on 21 July 2026. It implements a mandate in Law 4/2026, which amended the P2SK financial-sector law. We read the full text in the Ortax database; we have not read the elucidation line by line.
• Not operating yet: a PFII is created by a Government Regulation (PP) on the Finance Minister's proposal, which sets the location, the capital and a feasibility study; there may be more than one PFII, and it may not lie inside a special economic zone (Article 3). As of 8 November we found no such PP and no implementing regulation. Article 72 requires the implementing regulations within six months of promulgation, about 19 February 2027. Where: President Prabowo announced on 14 August (ANTARA) that the temporary location is Jakarta, Bali to follow and other regions possible; Coordinating Minister Airlangga Hartarto said on 28 October that regulations are being prepared, Jakarta first (Kompas.com, from ANTARA).
• What may be done there: financial activities (banking, insurance, Islamic finance, capital markets and derivatives, a carbon exchange, pensions, financing, venture capital, fintech, guarantees, international commodity trading, bullion, trusts, financial holding companies, foreign-exchange and money markets, family offices, investment management); supporting services (public accountants, valuers, notaries, legal, financial and tax consultants, actuaries); and some other sectors such as transport, accommodation, health, waste, tourism and food and beverage (Article 5). Purposes named include attracting financial institutions, funds, family offices, regional headquarters and treasury centres (Article 4).
• Governance: a PFII Governor, accountable to the President, chairs a PFII Council (a body of its own kind) with the heads of the management body (LP PFII) and of the financial-services supervisor (LPJK PFII) and up to four community members, on five-year terms renewable once; an Advisory Council is chaired by the Finance Minister with the Bank Indonesia Governor and the heads of OJK, LPS and PPATK (Articles 10–15). The initial capital of LP PFII may come from Danantara (as a special investment), businesses, grants of state or regional property and other lawful sources; operating costs may be funded from the state budget (Articles 24–26).
• Courts: a PFII Arbitration Institution (Chapter V) and a PFII Court (Chapter VI), a special court within the general courts under the Supreme Court. Its exclusive jurisdiction covers PFII business, contracts performed wholly or partly in a PFII, disputes over tax facilities, bankruptcy and restructuring of PFII-registered entities, matters the parties agree to bring, and challenges to decisions of the Council, LP PFII and LPJK PFII. It sits at first instance and appeal, with at least one Supreme Court justice on each panel; appeal rulings cannot go to cassation, judicial review (PK) or any other remedy, with one exception: a ruling that refuses to recognise and enforce an international arbitral award on a matter of national interest can go to the Supreme Court on cassation. Criminal cases stay with the district courts, with an emphasis on restorative justice, and foreign ad hoc judges are possible.
• Tax and customs facilities (Chapter VIII): income-tax facilities for up to 50 years for core financial activities and foreign taxpayers' investment, shorter for supporting and other sectors and for LP PFII and LPJK PFII, with the periods and qualifying conditions to be set by Ministerial Regulation. The forms named are an exemption for foreign-source income of businesses and foreign financial experts; a 100% reduction of corporate income tax; a 0% final income tax for financial experts and ad hoc judges; no domestic tax-subject status for foreigners registered with a family office who hold a golden visa and have no active business or employment income in Indonesia while the visa is valid; and withholding exemptions on foreign investors' investment income in the PFII and on purchases of very luxury homes in the PFII by individuals or entities that do business, serve, are based or live there. VAT is not collected and luxury-goods tax (PPnBM) does not apply to strategic goods and services (new buildings, rent, infrastructure construction, capital-goods imports); goods for PFII development are exempt from import duty; there is no inheritance tax in the PFII where the assets are registered with a PFII family office and the deceased is a foreign national registered with it; and grants that fund LP PFII's initial capital bear 0% final tax. Obligations remain: an NPWP, bookkeeping, withholding, annual returns and reporting on the use of the facilities, with revocation, repayment and sanctions for misuse (Article 64).
• Special provisions (Chapter IX): English is the language of the PFII (Article 66); Indonesian law applies except Indonesian civil and business-law provisions and other rules set by the Council (Article 67); a PFII licence does not authorise business elsewhere in Indonesia, but cross-border business from the PFII is allowed (Article 68); business may be done in foreign currency (rupiah for operating and daily needs) with free transfer and repatriation, and foreign-exchange and capital controls outside the PFII do not apply unless a Council regulation says so, but anti-money-laundering, beneficial-ownership transparency and tax-information-exchange rules apply (Article 69); financial transactions are regulated by LPJK PFII (Article 70); and the sector, judicial, arbitration, tax, language, currency, civil, foreign-exchange and regional-government laws do not apply to the extent specially regulated (Article 71). Immigration, labour, licensing, residency, golden-visa and residence-permit facilities are to be set by Council regulations (Article 65).

Sources

• Ortax database — Undang-Undang Nomor 6 Tahun 2026 tentang Pusat Finansial Internasional Indonesia (text; ratified and promulgated 19 August 2026, State Gazette 2026 No. 111)
• DPR RI — UU PFII Sah, DPR Bangun Fondasi Indonesia Naik Kelas di Peta Keuangan Global (plenary session of 21 July 2026)
• Kontan — Resmi Diterbitkan, UU PFII Atur 73 Pasal, Mulai Pajak hingga Pengadilan Khusus (14:11 WIB, 30 October 2026)
• Infobank — UU PFII Terbit, Modal Awal dari Danantara hingga APBN (3 November 2026)
• Kompas.com — Pusat Finansial Internasional Indonesia Bakal Dimulai di Jakarta, Bali Menyusul (09:58 WIB, 29 October 2026; Airlangga Hartarto, from ANTARA)
• ANTARA News — Prabowo umumkan Jakarta dan Bali jadi lokasi PFII (18:03 WIB, 14 August 2026)