Indonesia Passes International Financial Center Law, Bali Eyed as Permanent Base with Golden Visa Incentives
Indonesia's parliament passed a law on July 21, 2026 establishing the Pusat Finansial Internasional Indonesia (PFII), a new international financial center, with Bali being considered as its permanent location. The law offers incentives such as golden visas and corporate tax exemptions for foreign investors, and local businesses in Bali, including wine producers, are anticipating economic benefits from an influx of high-net-worth individuals.
On July 21, 2026, Indonesia's House of Representatives (DPR) passed a law establishing the Pusat Finansial Internasional Indonesia (PFII), a new international financial center. While initial operations will be based in the Danareksa building in Jakarta, the government is considering Bali as the permanent location for the center. Coordinating Minister for Economic Affairs Airlangga Hartarto named West Bali and the Sanur Special Economic Zone (KEK Sanur) as candidate sites.
Under the PFII framework, qualifying financial companies will receive incentives including zero corporate tax for up to 50 years, exemption from value-added tax (VAT/PPN), simplified customs procedures, and access to a 'golden visa' pathway for foreign investors. The government is modeling the center on frameworks like the Dubai International Financial Centre (DIFC), aiming to attract high-net-worth individuals, family offices, and international institutions.
In response, Bali-based wine producer PT Hatten Bali Tbk (WINE) announced it sees the influx of foreign investors and wealthy individuals as an opportunity for its premium wine business, anticipating growth in the hospitality and premium food and beverage sectors. The company already distributes to over 1,500 restaurants and 900 hotels and has recently opened a new outlet in Jakarta.
However, implementing regulations are expected to be released within six months of the law's passage, and the government has not yet officially confirmed whether Bali will be designated as the permanent site for the financial center.
Things to Consider
As of now, only the enabling law has been passed; detailed implementing regulations and the final permanent location have not yet been announced. Foreigners considering long-term stays, investment, or business expansion in Bali should monitor official announcements from Indonesia's immigration authority and economic ministries over the next six months for details on golden visa eligibility and implementation rules. It is advisable to wait for official confirmation of the program details before committing to real estate investments or business plans tied to this initiative.
Source: Suara.com