President Prabowo Subianto announced Indonesia's intention to create a specialized financial hub to enhance its status as a secure investment haven in light of escalating worldwide geopolitical conflicts.
“We are planning to establish a Special Financial Center and are currently identifying a suitable location,” he said during a cabinet meeting at the State Palace.
Also Read: Defense Minister Urges Military Overhaul Over Troop Shortage
The concept was initially introduced a few years ago by the Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, with Bali being initially contemplated as the location.
Prabowo stated that the proposal has gained increased significance as Indonesia strives to reaffirm to investors that its economic environment remains steady amidst the uncertainty prevailing globally.
He cited the increase in Russian and Ukrainian expatriates moving to Bali in response to the war outbreak in 2022 as evidence of changing international relations.
As per the president's statement, the proposed financial center has the potential to draw in investors who were previously focused on the Middle East but are now reevaluating their options due to the increasing conflicts in that region.
He emphasized that viewing global crises as both risks and opportunities is essential for Indonesia to further enhance its economic influence. Prabowo emphasized that the presence of volatility creates an opportunity to implement strategic initiatives and expedite key development projects.
“The key point is that we have significant potential, but we must work harder and with greater precision,” he says.
The government is intensifying its initiatives to attract investment across various industries, including renewable energy and the digital economy, in order to achieve its goal for 2026. Indonesia's objective for the year is to attract a total of Rp2,175 trillion, equivalent to approximately US$128 billion, in investments.
Also Read: Strong Leadership, Systemic Reform Could Combat Corruption: Azam
According to statistics provided by the Ministry of Investment and Downstreaming, the actual investment in 2025 amounted to Rp1,931.2 trillion, surpassing the predetermined target of Rp1,905.6 trillion. Moreover, during President Prabowo Subianto's visit, Indonesia has successfully garnered over Rp380 trillion (US$22.6 billion) in investment pledges from Japan, underscoring a substantial enhancement of bilateral economic relations.
Cabinet Secretary Teddy Indra Wijaya highlighted that these commitments exemplify Indonesia's increasing attractiveness as an international investment hub and are integral components of broader bilateral accords established with Japan. He emphasized that this agreement underscores the global trust in Indonesia's commercial environment and economic sustainability.
Prabowo is slated to convene for a bilateral discussion with Japanese Prime Minister Sanae Takaichi, in addition to interacting with prominent Japanese corporate leaders arranged by Minister of Investment and Downstream Industry Rosan Roeslani and Minister of Energy and Mineral Resources Bahlil Lahadalia.
Also Read: Defense Minister Praises Growing Military Ties With China
Teddy mentioned that approximately 12 major Japanese corporations are scheduled to hold a meeting with the president, emphasizing a sustained level of investor enthusiasm following comparable interactions that took place during Prabowo's most recent trip to the US.
Prabowo commenced his formal visit by engaging in discussions at the Imperial Palace, holding meetings with Emperor Naruhito and Crown Prince Fumihito to deliberate on strategic collaboration, encompassing areas such as environmental preservation and safeguarding of forests. The duration of the meeting was approximately 45 minutes, after which a state luncheon ensued. The total duration of all palace activities surpassed two hours, as reported by the Cabinet Secretariat.