(BSS/AFP) - Indonesia`s parliament passed a bill on Tuesday to establish an international financial centre, with the resort island of Bali previously floated as a possible location.

Finance Minister Purbaya Yudhi Sadewa said the financial centre, known as PFII, is expected to draw foreign investment and help accelerate the country`s growth.

"PFII attracts foreign capital flows and a sustainable portfolio investment as a long-term source of financing to expand the national economic pie so that Indonesia`s economy can grow faster," Purbaya told lawmakers on Tuesday.

"If the national economy can expand and grow faster, this will yield significant long-term benefits for national development throughout Indonesia."

The bill, which was passed unanimously, covers the institutional framework for the financial centre as well as tax incentives, according to lawmaker Mohamad Hekal.

An arbitration body and a special court authorised to examine and decide cases within the centre would also be established, he added.

The text of the bill has not yet been made public.

Bali was proposed as a possible site for the financial centre, according to a statement in May from the Coordinating Ministry of Economic Affairs.

President Prabowo Subianto has set an economic growth target of eight percent by 2029, powered by a boost in public spending.

The economy grew 5.6 percent year-on-year in the first quarter of 2026, according to the national statistics agency.