Indonesia Prepares Jakarta as Candidate Location for International Financial Center

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that not only preparing Bali as the location of the Indonesian International Financial Center (PFII), but also has prepared an area in Jakarta. Airlangga said the government had prepared a building in Jakarta which was Danantara's asset to support the operation of PFII. "One location in Jakarta has been prepared, the building is already there," he told the media, Thursday, July 23. However, he was not ready to reveal the exact location to be used, because the government was still preparing several alternatives before announcing the final decision. "Later it will be announced if everything is ready," he said. Airlangga explained that the location determination would consider the readiness of infrastructure and ease of implementation so that the government could immediately realize the project. "The consideration is which is the low hanging fruit that we can set up the fastest." Regarding the location in Bali, Airlangga only mentioned that the area was on land owned by Danantara and did not specify the exact point. Previously, the government planned to use the Danareksa Building in Jakarta as the initial location of the Indonesia International Financial Center before the main area was developed in Bali. Danantara's Chief Executive Officer (CEO), Rosan Roeslani, said the building was chosen because it was new and was under the management of a company related to Danantara. "We will use one of our buildings. It so happens that the Danareksa Building is a new building and the plan is to use it when preparing the financial center in Jakarta first," said Rosan at the Presidential Palace Complex, Jakarta, Thursday, July 23. Jakarta will be the location of the transition for two to three years and the Government needs time to build an international-standard financial center in Bali. Danantara will act as the developer of the area. However, Rosan has not detailed the amount of initial capital that will be prepared or the budget needs to build the financial center. According to Rosan, the management of the financial center will be led by the regional chairman and a governor appointed by President Prabowo Subianto. They will prepare the devices, systems, and institutions so that the financial center can function. "Danantara as a developer of the area. The financial center will later be led by the head of the area and the governor." Rosan said the law on the financial center had been approved by the DPR. The President then asked that its implementation be prepared immediately. The government plans to develop the financial center in Jakarta and Bali. However, Rosan has not explained the form of the division of functions of the two locations after the financial center in Bali is completed. He also has not said when the temporary office at the Danareksa Building will be used.