Jakarta, IndonesiaSentinel.com — The Indonesian government is setting its sights on attracting 28,000 of the world’s ultra-wealthy to store their assets through the development of Indonesia family offices.
This initiative is part of the government’s strategy to boost investment and position the country as a global financial hub for the super-rich.
Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, highlighted that Indonesia family offices represent a “golden opportunity” to increase capital inflows. By creating a favorable environment for the world’s wealthiest, Indonesia hopes to become a top destination for family office setups.
“This is a golden opportunity. I just spoke with Mr. Sandi earlier today about how there are approximately 28,000 ultra-wealthy individuals globally looking for a place to store their wealth. We just need to prepare Indonesia family offices for them,” Luhut shared during a discussion in Tangerang on Tuesday, Sept 17, 2024.
Luhut emphasized that these high-net-worth individuals view locations like Bali as attractive hubs for their assets.
Seizing this opportunity, the government is accelerating the creation of Indonesia family offices to ensure they can compete globally.
The concept is moving forward with support from the Coordinating Minister for Economic Affairs, Airlangga Hartarto. Both ministers have agreed to fast-track the process in response to the significant interest from the global wealthy community.
“Last night, I spoke with Mr. Airlangga about the plan to accelerate the setup of Indonesia family offices. We aim to cater to these 28,000 individuals who are seeking places like Indonesia, including Bali, to store their wealth,” Luhut explained.
He added that competitive regulations and policies will be crucial to attracting global wealth to Indonesia family offices.
Regarding the legal framework, Luhut expressed hope that the necessary regulations will be completed before the end of President Joko Widodo’s term. However, he assured that if delays occur, the incoming administration under President-elect Prabowo Subianto will continue supporting the initiative.
“We hope to complete it during President Jokowi’s tenure, but should it extend into the next term, Mr. Prabowo is already well-versed in this plan. If needed, the Indonesia family office regulations will be finalized after his inauguration,” Luhut stated confidently.
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This initiative marks a significant step in Indonesia’s efforts to position itself as a global hub for the world’s ultra-wealthy, leveraging the appeal of its unique locations and competitive investment climate.
(Ray)
