Indonesia’s proposed international financial centre could attract between 300 trillion and 500 trillion rupiah in new investment, according to a senior Finance Ministry official. At the upper end, the estimate is equal to about $27.79 billion based on the exchange rate reported when the announcement was made. The project is intended to bring new financial institutions and business operations into the country.

Herman Saheruddin, an official at the ministry, said investment could include the establishment of branches by foreign banks. New business entities could also be created within the centre. However, authorities have not yet selected the location for the proposed development.

A bill covering the financial centre is currently being considered in Indonesia. The planned legislation would set out its legal framework and the tax benefits available to participating companies. Earlier discussions involving lawmakers and economic specialists included proposals for full exemptions from corporate income tax.

Businesses operating inside the centre could also receive value-added tax exemptions on eligible goods and services. The final incentives will depend on the provisions approved through the legislative process. The project therefore remains at the planning stage, but the investment estimate indicates the scale expected by officials.

If implemented as proposed, the centre could expand Indonesia’s financial services sector and attract foreign banks, investors and other companies. Further details, including the location, development schedule and final tax rules, are expected after deliberations on the bill are completed.