The House of Representatives has approved legislation to establish the Indonesia International Financial Centre (Pusat Finansial Indonesia Internasional/PFII), introducing a package of tax incentives aimed at attracting foreign capital, international financial institutions, and global professionals.
Among the most notable proposals is a new tax benefit linked to the Indonesia Golden Visa programme. Eligible Golden Visa holders operating within the future financial centre could receive non-resident tax status, potentially making Indonesia a more attractive destination for long-term investors and internationally mobile executives.
Although the law has now been passed, many of the operational details, including where the financial centre will be located and who will ultimately qualify for the incentives, are still awaiting implementing regulations from the government.
What Is Indonesia’s New International Financial Centre?
The new legislation establishes a dedicated financial jurisdiction operating under its own regulatory framework, separate from Indonesia’s conventional business ecosystem.
Rather than functioning as a traditional Special Economic Zone (SEZ), the International Financial Centre has been designed to support cross-border financial services while attracting long-term international investment.
Under the new framework, qualifying businesses may become eligible for incentives such as:
- 100% Corporate Income Tax exemption
- Personal Income Tax exemption for eligible foreign financial professionals
- Non-resident tax treatment for qualifying Indonesia Golden Visa holders
- Exemptions from withholding tax on selected overseas investment income
- Relief from Value Added Tax (VAT), Luxury Goods Sales Tax, and certain import duties
- Additional fiscal incentives introduced through future regulations
Although no official location has been announced, Bali’s Kura Kura Special Economic Zone remains one of the sites being considered by the government.
Why Does This Matter for Indonesia Golden Visa Holders?
The legislation represents one of the strongest links yet between Indonesia’s immigration and investment policies.
If implemented as proposed, qualifying Indonesia Golden Visa holders connected to the International Financial Centre may receive non-resident tax status, allowing them to benefit from a more favourable tax regime while living and investing in Indonesia.
The move reflects Indonesia’s broader ambition to compete with established financial centres by encouraging internationally mobile entrepreneurs, executives, family offices, and institutional investors to establish a long-term presence in the country.
However, the precise eligibility criteria will only become clear once the implementing regulations are published.
A Quick Guide to the Indonesia Golden Visa
Launched in July 2024, the Indonesia Golden Visa is a long-term residence programme designed to attract investors, business leaders, and highly skilled global talent.
Unlike conventional stay permits, the Golden Visa provides an extended period of residence for individuals making qualifying investments in Indonesia.
Current investment thresholds include:
- Five-year Golden Visa: Minimum investment of US$350,000 in qualifying government bonds, bank deposits, or publicly listed Indonesian company shares.
- Ten-year Golden Visa: Minimum investment of US$700,000 under the same investment categories.
Separate investment requirements also apply to corporate investors, company founders, directors, commissioners, and institutional applicants.
While the visa allows long-term residence, it does not provide Indonesian citizenship or permanent residency. Instead, it offers a flexible immigration pathway for investors who intend to contribute to Indonesia’s economic growth over the longer term.
According to government figures, the programme had generated approximately IDR 52.1 trillion in investment through 1,274 Golden Visas as of 18 May 2026, with corporate investors accounting for the majority of total investment.
Read more about Indonesia Golden Visa here.
Which Businesses Will Operate Within the Financial Centre?
The International Financial Centre is expected to focus on specialised financial industries rather than general commercial businesses.
Permitted sectors are expected to include:
- Banking
- Insurance
- Capital markets
- Pension funds
- Bullion trading
- Family offices
- Accounting
- Legal advisory
- Financial consulting
Companies established within the zone will generally be restricted from serving Indonesia’s domestic retail market directly, reinforcing the centre’s role as an international financial hub.
The legislation also provides for its own governance structure, including a governor appointed by the President, a dedicated arbitration institution, and a specialised court.
What Still Needs to Be Confirmed?
Although Parliament has approved the legislation, several important questions remain unanswered.
The government has yet to announce:
- The official location of the International Financial Centre;
- Which businesses will qualify for the proposed tax incentives;
- How non-resident tax treatment will be applied to Indonesia Golden Visa holders;
- The operational framework for companies within the centre; and
- The official implementation timeline.
These details are expected to be introduced through future government regulations.
What Does This Mean for Foreign Investors?
The proposed International Financial Centre demonstrates Indonesia’s continuing efforts to attract long-term international investment by combining fiscal incentives with investor-focused immigration policies.
For businesses exploring expansion into Indonesia, the initiative could create new opportunities, particularly for multinational companies, financial institutions, family offices, and investors looking for a long-term base in Southeast Asia.
At the same time, investors should remember that immigration, taxation, business licensing, and company establishment remain subject to Indonesia’s evolving legal framework. As further regulations are introduced, understanding the practical implications will become increasingly important for businesses planning their next move.
Stay Informed with LMI Consultancy
Indonesia’s immigration and investment landscape continues to evolve as the government introduces new policies to strengthen the country’s competitiveness. Whether you are considering an Indonesia Golden Visa, establishing a PT PMA, or planning a long-term relocation, staying informed can help you make confident decisions.
For the latest immigration news, business updates, and regulatory insights, LMI Consultancy provides professional guidance on Golden Visa applications, company establishment, investor immigration, business licensing, and ongoing corporate compliance.
Stay updated with Indonesia’s immigration and business regulations with LMI Consultancy, and keep following Social Expat for the latest news affecting expatriates and global professionals living in Indonesia.
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Photo Cover by Jeffry Surianto
