The Indonesian Researchers Association, known as PPI, is calling on the government to offer competitive fiscal incentives as it moves forward with the International Financial Center, or PFII, Law. The group argues that strong policy support will be important if Indonesia wants to draw global investment and compete with other financial hubs.
According to the report, PPI sees fiscal incentives as a key part of making the PFII framework attractive to international investors. In its view, regulations alone may not be enough to encourage large inflows of capital, especially when investors compare tax treatment, operating costs and overall ease of doing business across different markets.
The discussion highlights a broader challenge for Indonesia as it seeks to position itself more strongly in global finance. A financial center typically needs not only legal certainty, but also incentives that help improve competitiveness and reduce barriers for institutions considering expansion or relocation.
PPI’s appeal adds to the policy debate around how the PFII Law should be implemented in practice. The central message is that if Indonesia wants the International Financial Center initiative to succeed, fiscal measures will need to be designed in a way that is compelling enough to attract sustained global investor interest.
