Jakarta, July 21 -- Indonesia's planned International Financial Center aims to attract long-term foreign investment and reduce the risk of sudden capital outflows, according to the Finance Ministry.

The center is designed to encourage foreign direct investment to remain in Indonesia longer rather than flow in and out quickly, Financial Sector Stability and Development Director General Herman Saheruddin said Monday.

Foreign investment typically enters Indonesia through capital markets, allowing funds to flow in easily but also making the country vulnerable to sudden outflows, he said.

The government is establishing the center as a specialized hub to encourage foreign investors to commit capital for the long term.

"The aim is to encoura...