The PFII Law Establishes a Judicial and Legal Profession Enclave

The establishment of Indonesian International Financial Center (Pusat Finansial Internasional Indonesia - “PFII”) through the enactment of the Draft Bill (“Draft Bill”) into law at a plenary session of the Parliament Complex not only creates a financial free zone but also has the potential to establish a new legal enclave. Although the PFII Court may appoint foreign nationals as ad hoc judges, its highest-ranking judicial officer must remain a Supreme Court Justice appointed by the Chief Justice of Indonesia’s Supreme Court (“MA”).

“The composition and jurisdiction of the PFII Court judges are still under review,” said Syamsul Ma'arif, Head of the MA's Chamber for Supervision.

Based on the draft PFII Bill obtained by Hukumonline, Article 27 paragraph (1) grants the Chief Judge of the PFII Court independent authority to determine, regulate, and supervise procedural rights, admission to practice, registration, licensing, as well as the conduct and discipline of advocates and legal consultants appearing before the court. This provision has the potential to create a dual regulatory regime—or a separate "licensing enclave"—distinct from the national framework governing the legal profession.

“Once again, the most important consideration is legal certainty,” said the Minister of Finance Purbaya Yudhi Sadewa.