Otago Volts will play in the final Saturday (January 18) against the winner of Friday's clash between Canterbury Wizards and SKYCITY Northern Knights.
The Otago Cricket Association (OCA) came to the decision to sign Holder in light of the unavailability of Nathan McCullum, Jimmy Neesham and Jesse Ryder because of international commitments.
Ian Butler is also still recovering from injury, prompting Otago's need for reinforcements.
"Jason was keen to be involved," said OCA chief executive, Ross Dykes.
"He has IPL experience and is obviously bowling-fit as a result of the current series (New Zealand v West Indies)."
Holder is already in New Zealand as part of the limited-overs series, which ended Wednesday with a Twenty20 in Wellington.
He was part of the Chennai Super Kings squad for both the Indian Premier League and Champions League T20 last year and has taken 29 wickets in 35 T20 matches, at an average of 29.13.