INDEF urges PFII to build an edge through sharia system
It warns low tax incentives and loose rules are not a durable way to attract global investment.
INDEF said the Indonesia International Financial Center, or PFII, needs to build its advantage through a sharia architecture rather than rely only on fiscal incentives and regulatory easing. Nur Hidayah, head of the Center for Sharia Economic Development at INDEF, said sharia status in the PFII Law remains only recognition of business activity and has not yet become a binding institutional and governance regime. In a public discussion in Jakarta on Friday, she said a model built on low taxes is fragile because other countries can copy it and it risks eroding state revenue. According to her, a more durable appeal would come from legal certainty, stronger institutions and product specialization so PFII can stand out among global financial centers.