Few Bali headlines this year were as large as this one: Indonesia will build a financial centre to compete with Dubai and Singapore, and it will be on Bali. Parts of that are law. Other parts are plans, and some are what sellers add. For a property decision the difference matters.
21 July 2026
the Indonesian parliament passed the law on the international financial centre (PFII)
Jakarta first
the President named Jakarta as the temporary location on 14 August. Bali follows “as soon as it is ready”.
Not yet set
the site on Bali. The law does not name one; a government regulation will.
What is decided
The legal basis is Law 4/2026, signed on 17 June 2026, which amended the financial sector law and ordered a financial centre to be set up. Parliament passed the detailed PFII law on 21 July. It creates the centre’s own institutions: a governor who reports to the President, a management authority, a separate financial regulator, an arbitration institute and a court that can work in English. Eligible activities are financial: banking, insurance, capital markets, fund and wealth management, family offices, fintech.
The incentives are generous on paper. Qualifying income can be exempt from corporate tax for up to 50 years, with relief on VAT and luxury goods tax. Large multinational groups still pay the 15% global minimum tax.
What is not decided
- The site on Bali. According to the parliamentary committee, the location is set by government regulation on the finance minister’s proposal. On 20 August the coordinating minister for the economy said the Bali site is land owned by Danantara, the state investment fund, and is still being evaluated. The press has mentioned Kura Kura on Serangan, Sanur and North Bali.
- The date. The President said on 14 August that the centre starts in Jakarta and opens on Bali “as soon as it is ready”. There is no date for Bali.
- The implementing rules. The regulations were due within three months of the June law. At the time of writing we have not seen them published.
What it does not do for a villa buyer
The tax incentives apply to financial activity inside the centre, not to property. Buying a villa does not bring a tax benefit, and it does not qualify for Indonesia’s golden visa either: for individual investors that requires financial assets such as government bonds, listed shares or deposits.
The investment figures also need reading with care. The special economic zone at Kura Kura has a development target of about USD 6.3 billion, and the financial centre as a whole aims to attract USD 19–31 billion. By the first quarter of 2026 about USD 93 million had actually been invested in the zone. The large numbers are targets.
The critical view
The law went through parliament quickly, and not everyone is convinced. Critics point out that Bali lacks Jakarta’s workforce and corporate base, that building height limits do not suit a financial district, and that broad tax exemptions and provisions shielding certain bond buyers raise money-laundering concerns. One expert said a tax-free Bali haven would never happen. These are opinions, not facts, but a balanced reading includes them.
How we read it
If the centre does come to Bali, it can bring something the island has lacked: demand that does not depend on tourism. Professionals and their families rent for months, not nights, and they look near their offices. That would help South Bali most, and it would take years.
Our rule is simple. A price should make sense without the financial centre. If a seller’s case depends on it, or a brochure calls a site “next to the financial hub” before the site is set, ask for the source. Treat the centre as possible upside, not as part of the return.
EM Villas is in Pererenan, Canggu, not in the areas mentioned for the financial centre. We do not include the centre in its return model.
This article is general information, not legal, tax or investment advice. Rules in Indonesia change, sometimes by administrative decision. Confirm your own position with a qualified adviser before you commit.