(BALI, INDONESIA) – Indonesia is considering a Bali-based international financial centre offering 0% income tax, a 100% corporate income tax reduction, and broad tax exemptions to attract foreign financial-sector activity after a July 6, 2026 public hearing.

Current discussions place the project in Bali’s Kura Kura special economic zone, a site that would serve as a finance-focused hub with its own legal and administrative structure. Lawmakers discussed the bill on July 6, 2026 and aimed to pass it in the following weeks.

The draft package is unusually wide. It would give foreign financial-sector experts a full personal tax break inside the zone, cut corporate income tax by 100% for zone-based businesses, and remove several transaction and trade taxes that often shape where firms choose to set up.

Overseas investors would also be able to receive dividends and other returns from the hub without Indonesian withholding or collection tax. The bill adds a value-added tax waiver, a luxury-goods sales tax exemption, and import duty exemptions. Those terms are meant to pull in capital, firms, and highly paid foreign staff at the same time.

Indonesia’s government is not only offering tax relief. The proposal would also create a special court and arbitration body inside the zone, with court rulings final except in limited international-arbitration cases. That kind of legal autonomy is often pitched as a way to give investors faster dispute resolution.

Immigration sits inside the same proposal. A Governor (appointed by the president) would oversee the zone and could issue rules on immigration, labour, and residency. That gives the project a direct link between tax incentives and who may live and work there.

Overview of the proposed financial centre

The proposed centre is designed for cross-border finance, not general tourism or residential development. Reported activities include banking, insurance, pensions, capital markets, bullion, family offices, accounting, legal counsel, and financial consulting. The mix suggests a bid to build a full service platform rather than a single-industry enclave.

Bali has drawn global attention for tourism and remote work, but this plan points in a different direction. The Kura Kura special economic zone would be marketed as a place where foreign firms can base investment, advisory, and wealth-management work under a separate rule set.

Tax and investment incentives

The tax package starts with the headline numbers: 0% income tax for foreign financial-sector experts in the zone and a 100% corporate income tax reduction for zone-based businesses. On top of that, overseas investors may receive dividends or other returns without Indonesian withholding or collection tax.

Indirect taxes are also part of the draft. The proposal would waive VAT, exempt luxury-goods sales tax, and lift import duties for qualifying activity in the zone. Together, those measures may lower the cost of setting up offices, importing equipment, and moving capital through the hub.

Scope of activity and legal structure

Financial hubs often compete on process as much as tax. Indonesia’s draft adds a special court and arbitration body inside the zone, with final rulings except for limited international-arbitration cases. Businesses usually watch that kind of clause closely because contract enforcement can shape where disputes are heard.

Administrative power would sit with a governor who is appointed by and accountable to the president. That official could issue rules on immigration, labour, and residency. A zone where tax rules and entry rules can be shaped together may appeal to firms moving both capital and staff across borders.

The plan also carries immigration consequences beyond finance firms. Bali has already been part of wider debates over remote work, long stays, and tax residence for foreigners. This proposal does not create a standard digital nomad program, but it touches similar questions about how a foreigner’s visa status relates to tax residency.

Golden Visas and tax residency

One of the most closely watched clauses involves Golden Visas. Foreigners holding Golden Visas in the zone may not be treated as domestic tax residents. That distinction may affect how income is taxed, where filing duties arise, and whether a person is treated as resident under Indonesian rules.

That point matters because immigration status and tax residence are not always the same thing. A person may hold a lawful long-stay status yet still face a separate test for domestic tax residency. Anyone weighing relocation to Bali for finance work would usually need to review both systems together.

Indonesia has already drawn remote workers and foreign investors to Bali under existing entry routes. The proposed zone may sharpen that divide by creating a setting where some foreigners can live or work under zone-specific immigration rules while receiving different tax treatment from ordinary residents. Exact outcomes would still depend on the final law and personal facts.

Timeline and legislative process

The bill reached a public hearing on July 6, 2026. Reports from the hearing indicated that lawmakers wanted passage in the weeks after that session, putting the proposal on a short political timetable.

Speed does not settle the details. Draft language can change before a final vote, especially on issues such as residency treatment, who qualifies as a foreign financial expert, and how the zone’s legal bodies would interact with national institutions. Investors and potential residents usually watch the final text more closely than early headlines.

Bali’s role is still central even though the final location was not treated as fully settled in every report. If the hub is established in Bali’s Kura Kura special economic zone, Indonesia would be pairing a major tourism destination with a low-tax finance district and a separate rulebook for courts, immigration, and residency. That is a striking mix.

This article discusses proposed tax and immigration incentives that are not yet law. Readers should consult official sources and qualified professionals for up-to-date guidance.

Tax residency and Golden Visa implications can vary by individual circumstances and are subject to change with future legislation. The next date to watch is the period immediately after July 6, 2026, when lawmakers said they wanted the bill passed.