Indonesia's parliamentary committee on Monday endorsed key provisions of a bill to establish international financial centers, clearing the way for a final vote in parliament expected on Tuesday, Reuters reported Monday.
The proposed legislation is designed to attract foreign capital and boost Indonesia's position as a regional financial hub. The bill will establish a supervisory body for the financial centers reporting to the president and parliament, along with a dedicated arbitration body and special court to resolve disputes. It also proposes incentives including tax holidays of up to 50 years for eligible investors, exemptions on overseas income and certain value-added taxes, and special inheritance tax arrangements, according to the report.
Officials have previously said the framework could mirror incentives offered by financial centres such as Dubai, with Bali identified as a potential location. Indonesia's finance ministry estimates the initiative could draw 300 trillion to 500 trillion rupiah in investment, including foreign bank branches and other financial services firms, the news agency said.
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