Expert calls Bali tax‑free plan 'PR stunt'

Indonesia’s government has begun promoting Bali’s Kura Kura special economic zone as a possible international financial center, adding a new layer to the island’s long-running push to diversify beyond tourism. Coordinating Minister for Economic Affairs Airlangga Hartarto said on May 1 that the zone was being prepared as one of the areas with potential for an Indonesia Financial Center, according to government statements published on May 10. The proposal has also drawn skepticism from outside advisers. IMI Daily reported on May 20 that Singapore-based consultant Philippe May called the idea of a Bali tax-free haven a “PR stunt” and said it would “never happen.” ### What exactly did the Indonesian government announce? Airlangga Hartarto visited the Kura Kura Bali Special Economic Zone in Serangan Village, Denpasar, on May 1 and reviewed its readiness as a potential site for an Indonesia Financial Center, according to state news agency Antara and the Coordinating Ministry for Economic Affairs. Both reports said the work followed direction from President Prabowo Subianto. (en.antaranews.com) The Kura Kura Bali zone is not a new legal entity. Indonesia’s State Secretariat said Government Regulation No. 23 of 2023 established the Kura Kura Bali special economic zone in South Denpasar with an area of 498 hectares. The 2023 regulation described the zone’s business focus as tourism and creative industries. ### Is a tax-free haven already part of the law? (en.antaranews.com) The legal framework available as of May 21 does not show a published national rule creating a tax-free financial haven in Bali. The State Secretariat’s 2023 regulation for Kura Kura Bali covers the formation of the special economic zone and its initial business scope, but the material surfaced in current government statements describes a plan to prepare the zone for financial-center functions rather than a completed legal change. (setneg.go.id) Kompas, citing Airlangga’s May 1 remarks, reported that a regulation would be the basis for forming a financial-sector special economic zone designed to accommodate management schemes and facilities intended to attract global investors. That wording points to a further rule still to come, rather than one already in force. ### Why did Philippe May dismiss the proposal? (setneg.go.id) IMI Daily reported on May 20 that Philippe May said the Bali tax-free haven idea was a “PR stunt” and that “it will never happen.” The publication said May argued there was no legislation and no timeline for implementation. May’s comments were published as the government was presenting Bali as a possible destination for family offices, sovereign wealth funds, pension funds and venture capital, according to Antara and the economic ministry’s account of Airlangga’s visit. (kompas.com) Those official statements set out the ambition for an international finance hub, but they did not, in the material reviewed, include a published implementation schedule for a tax-free regime. (imidaily.com) ### What is already on the ground at Kura Kura Bali? Kura Kura Bali has been under development for years as a broader mixed-use and special economic zone project in southern Denpasar. Earlier government material described the area in terms of tourism, education, technology and creative-economy development, showing that the financial-center concept is an expansion of the site’s earlier mandate rather than a stand-alone new islandwide policy. (en.antaranews.com) Antara said the zone is also preparing supporting infrastructure for financial-center operations, including a business hub tied to blended-finance and investment activity. Government-backed and related reports have framed that build-out as part of a wider effort to reduce Bali’s dependence on tourism. ### What should readers watch next? Any formal move from concept to policy would likely appear first in an Indonesian regulation, ministry release or official legal database rather than in promotional coverage. (setneg.go.id) As of May 21, the published materials show a government plan to prepare Kura Kura Bali for financial-center status and a separate outside critique that no legislation or timetable for a tax-free haven has yet been issued. (jdih.setneg.go.id) (en.antaranews.com)