Academia
For Indonesia’s new financial hub to become a global powerhouse rather than an ambitious policy fantasy, the nation must offer investors what matters most: unyielding legal certainty.
Singapore's financial business district is seen on July 12, 2019, from Marina Bay. (AFP/Roslan Rahman)
Indonesia is embarking on a new chapter in its economic trajectory with plans to establish the Indonesian International Financial Center (IFC). As Southeast Asia’s largest economy and a long-standing member of the Group of 20, the country has long been positioned to attract substantial international interest.However, this initiative poses a crucial question: Will the establishment of an IFC truly elevate the Indonesian economy, or will it prove to be little more than an ambitious policy fantasy?
Currently, the Indonesian IFC is in its institutional building phase—establishing its legal, regulatory and foundational frameworks. This initial stage is the most critical. Drafts of the IFC Law mandate the creation of a dedicated Special Economic Zone (SEZ) for the financial sector, operating with financial, administrative and operational independence. The objective is to concentrate financial services and technology development within an ecosystem anchored by efficiency, transparency and integrity.
