The Indonesian parliament's financial commission has agreed to begin deliberating on a bill to create international financial centres with their own separate court system to settle business disputes, the head of the commission said on Thursday.
Here are the details:
The bill aims to draw in foreign capital and deepen Indonesia's financial markets, while still maintaining its legal sovereignty, Finance Minister Purbaya Yudhi Sadewa told the parliamentary commission.
The commission head, Mukhamad Misbakhun said all parties have agreed to deliberate on the bill, with the aim of passing it on July 21.
The government drafted the bill and has consulted with justices from the Supreme Court, Purbaya said
"Within certain limits, an international financial centre (IFC) is permitted to adopt, incorporate, apply, or adapt international commercial law principles," he said.
The bill will also set regulations for the establishment of a special court, called the IFC court, that will have "special authority to examine, adjudicate, and decide on disputes related to business activities in the IFC," Purbaya said, adding the court can also oversee international commercial disputes.
Purbaya said Indonesia will offer incentives in its IFCs similar to those given by authorities in places like Dubai.
The minister did not provide further details and the draft bill was not made public.
The draft bill builds on sweeping legislation passed by parliament last month that included a provision on the creation of IFCs.
Indonesia has previously considered drawing up special wealth management laws, including in 2024 when it explored possible legislation to allow the holiday island of Bali to compete with Singapore to host "single family offices" - private companies set up to manage the wealth and business of rich families.