Indonesia Financial Hub Proposal Includes Tax Incentives for Global Investors

Indonesia is considering sweeping tax incentives to support a proposed international financial centre as the government seeks to attract global capital, financial institutions and family offices.

The Indonesia financial hub proposal includes extensive fiscal incentives aimed at strengthening the country's competitiveness as a regional investment destination.

Lawmakers discussed legislation that would provide a 100% corporate income tax reduction for qualifying businesses and exempt foreign financial-sector professionals from personal income tax.

The proposal would also remove withholding tax on certain dividends and investment returns for overseas investors while waiving value-added tax, luxury-goods tax and import duties in selected cases.

The proposed financial hub would accommodate banking, insurance, pensions, capital markets, bullion trading, family offices and professional services, supported by an independent arbitration body, special court and enhanced financial autonomy.

Bali is among the locations under consideration.

The Indonesia financial hub initiative forms part of President Prabowo Subianto's broader strategy to attract international investment and accelerate long-term economic growth.