Indonesia Passes New Law for Financial Center Projected to Draw Billions
Updated
Updated · South China Morning Post · Jul 26
Indonesia Passes New Law for Financial Center Projected to Draw Billions
1 articles · Updated · South China Morning Post · Jul 26
Summary
A new Indonesian law creates the legal basis for a planned financial center, advancing Jakarta’s long-running ambition to build a regional hub that could attract billions of US dollars.
The framework adds an arbitration body, a special court for disputes, a supervisory board and a dedicated government body reporting directly to the president and parliament.
Investment Minister Rosan Roeslani said the law fills a gap because Indonesia, despite strong economic fundamentals, has lacked a dedicated center that meets governance standards expected by global financial institutions.
Key operating details still need to be finalized, including tax incentives, investor requirements and regulatory safeguards, leaving economists to argue governance will determine whether the project can rival Singapore.