Indonesia is planning to create a financial hub in tourist hotspot Bali as it seeks to boost its lagging economy by attracting international banks, asset managers and private equity firms, according to people familiar with the matter.
President Prabowo Subianto has endorsed his government’s proposal to model the tourist island after the likes of India’s Gujarat International Finance Tec-City, also known as GIFT City, and the Dubai International Financial Centre, said the people who asked not to be named because the plan was not public.
The Bali financial zone would offer tax and regulatory exemptions, cut red tape and complex bureaucracy – a perennial problem for companies wanting to do business in Southeast Asia’s largest economy.
To do so, Indonesia was planning to implement a different legal framework in the hub, and was considering Singapore’s system as a possible model due to its business-friendly reputation, the people said.
Officials are working on a draft proposal for a possible parliament vote at the end of the year. Still, the proposed Indonesia Financial City was at a conceptual stage and subject to change, the people said.
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