Academia
Finance Minister Purbaya Yudhi Sadewa delivers the government's final statement on behalf of President Prabowo Subianto on June 4, 2026, during a plenary session on amendments to the 2023 Financial Sector Development and Strengthening (P2SK) Law at the Senayan Legislative Complex in Central Jakarta. (Antara/Rivan Awal Lingga)
The establishment of the Indonesia International Financial Center (IFC), introduced through the revised Financial Sector Development and Strengthening (P2SK) Law, has raised concerns that it could become a channel for illicit funds. The concern stems from the law's simultaneous introduction of legal protections for buyers of special government bonds, shielding them from criminal, civil and tax investigations while prohibiting the bonds from being used for tax assessments or as evidence in court proceedings.The IFC represents an ambitious effort to position Indonesia as an international financial hub. However, the legal protections afforded to buyers of Danantara's special bonds, including the Patriot Bonds and Red and White Bonds, risk undermining the credibility the IFC needs to attract sophisticated institutional investors, including family offices. Moreover, the government's three-month deadline to complete the IFC Law may leave insufficient time to develop the robust institutional framework such a financial center requires.
