Indonesia Plans to Establish Bali as a New Financial Hub to Revitalize Economy
In an ambitious move to invigorate its slowing economy, Indonesia is preparing to develop a financial hub in the popular tourist destination of Bali. The initiative aims to attract international banks, asset managers, and private equity firms by creating a business environment with streamlined regulations and incentives.
Endorsed by President Prabowo Subianto, the proposed financial zone in Bali is envisioned as a pioneering economic center modeled after successful international counterparts such as India’s Gujarat International Finance Tec-City (GIFT City) and the Dubai International Financial Centre. These examples have demonstrated how specialized zones with favorable policies can attract global finance players and stimulate economic growth.
The plan includes offering tax exemptions and regulatory relief to reduce the bureaucratic hurdles that have traditionally hindered business operations in Indonesia, Southeast Asia’s largest economy. To facilitate this, the government is considering implementing a distinct legal framework within the hub, potentially drawing inspiration from Singapore’s well-regarded business-friendly system.
Officials involved in the project are currently drafting a formal proposal with the goal of presenting it for a parliamentary vote by the end of the year. However, sources familiar with the matter clarify that the Indonesia Financial City concept remains in its preliminary stages and may undergo modifications before final approval.
This strategic push to position Bali as a financial center represents Indonesia’s broader efforts to diversify and strengthen its economic landscape by leveraging the island’s global profile and favorable geographic location. If successful, the initiative could signal a significant shift in the country’s economic development trajectory.
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