Indonesia has unveiled a new vision to transform the holiday island of Bali into a global finance hub inspired by destinations such as Dubai, Hong Kong and Singapore, but the tourist hotspot faces a raft of systemic and infrastructural hurdles before it can attain the lofty goal.
Indonesian Chief Economic Minister Airlangga Hartarto earlier this week said the government was finalising regulations to establish a financial hub in the Kura Kura Special Economic Zone (SEZ) on Serangan island, 500 metres south of Denpasar, the provincial capital of Bali.
Last month, President Prabowo Subianto said he was planning to set up a financial centre to capitalise on Indonesia’s status as a safe country, particularly amid the war in the Middle East.
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“Indonesia is among the countries considered the safest if World War III ever breaks out. Just see how many Russians and Ukrainians are in Bali. We are planning to set up a special financial centre,” Prabowo said on April 8.
Haryo Limanseto, a spokesman with the Coordinating Ministry of Economic Affairs, said in a statement on Monday that Bali “could serve as a barometer for the financial sector”.
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“The international financial centre [IFC] is a strategic step in strengthening national economic competitiveness,” Haryo said.