Indonesia’s plan for a Singapore rival starts to take shape
Indonesia wants to build a financial centre to rival Singapore, Hong Kong or Dubai, but analysts say the real work of persuading global investors has barely begun. Parliament’s passage of the enabling legislation on Tuesday laid the legal foundation for the hub, marking a milesto
AdvertisementIndonesiaThis Week in AsiaEconomicsIndonesia’s plan for a Singapore rival starts to take shapeA new law lays the legal groundwork, but economists warn governance will decide the financial centre’s fate3-MIN READ3-MINKolette LimPublished: 8:00am, 26 Jul 2026Indonesia wants to build a financial centre to rival Singapore, Hong Kong or Dubai, but analysts say the real work of persuading global investors has barely begun.Parliament’s passage of the enabling legislation on Tuesday laid the legal foundation for the hub, marking a milestone in President Prabowo Subianto’s push to attract more foreign capital into Southeast Asia’s largest economy and lift growth towards 8 per cent by the end of his term in 2029.Yet observers caution that the centre, which is projected to attract billions of US dollars in investment, is unlikely to deliver an overnight transformation, as crucial details surrounding tax incentives, investor requirements and regulatory safeguards are still to be finalised.
Indonesia’s Investment Minister Rosan Roeslani said the legislation “addressed a clear gap” as despite the country’s “strong economic fundamentals”, it had never had a dedicated centre meeting the governance benchmarks that global financial institutions had come to expect.Indonesia’s President Prabowo Subianto delivers a speech during the inauguration of a bullion banking service in Jakarta last year. Photo: AFPThe new legal framework will include an arbitration body and a special court to settle disputes arising within the financial centre, alongside a supervisory board and a dedicated governmental body answerable directly to the president and parliament.
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