Indonesia Plans Special Financial Center to Attract Global Investment Amid Geopolitical Uncertainty
Jakarta, The Gulf Observer: Prabowo Subianto has announced plans to establish a Special Financial Center aimed at strengthening Indonesia’s position as a secure and attractive investment destination in the face of rising global geopolitical tensions.
Speaking during a cabinet meeting at the State Palace in Jakarta, President Prabowo said the government is currently identifying a suitable location for the proposed financial hub. The initiative, he noted, was first suggested several years ago by Luhut Binsar Pandjaitan, with Bali initially considered as a potential site.
The president emphasized that the proposal has gained renewed importance as Indonesia seeks to reassure international investors about the stability of its business environment despite global uncertainties. He cited the influx of Russian and Ukrainian nationals relocating to Bali following the outbreak of the Russia-Ukraine War as an example of shifting global dynamics.
According to President Prabowo, the planned financial center could attract investors who had previously focused on the Middle East but are now reassessing their strategies due to escalating regional tensions. He underscored that global crises should be viewed not only as risks but also as opportunities for Indonesia to expand its economic footprint.
Highlighting the country’s economic ambitions, he said volatility presents an opportunity to introduce strategic initiatives and accelerate priority development programmes. “The key point is that we have significant potential, but we must work harder and with greater precision,” he stated.
The government is intensifying efforts to attract investment across key sectors, including renewable energy and the digital economy, in line with its 2026 targets. Indonesia aims to secure Rp2,175 trillion (approximately $128 billion) in investment this year.
Official data from the Ministry of Investment and Downstreaming showed that realized investment in 2025 reached Rp1,931.2 trillion, surpassing the official target of Rp1,905.6 trillion, reflecting strong investor confidence in the country’s economic trajectory.
