Jakarta, July 15 -- Bank Indonesia (BI) backed the government's plan to establish the Indonesian International Financial Center (PFII), saying the initiative could strengthen external resilience by attracting capital inflows and improving the country's balance of payments.

"The biggest challenge facing our economy is the external sector," BI Senior Deputy Governor Destry Damayanti said at the 2026 Investment Forum in Jakarta on Wednesday.

Indonesia continues to post a goods trade surplus but still runs a services deficit, weighing on the overall balance of payments, she said.

Damayanti said the PFII would strengthen the external sector while attracting more portfolio inflows and foreign direct investment into the real economy.

She sai...