Jakarta, Indonesia Sentinel — The Indonesian government is moving forward with plans to establish Wealth Management Consulting (WMC), commonly referred to as a “family office”. The initiative expected to begin in February.
Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, announced that the initiative has received approval from President Prabowo Subianto, allowing for swift implementation.
“We want to act quickly. If I meet the president, I will propose that we launch it next month. We’ve been studying this for a long time,” Luhut said during an event in South Jakarta on Wednesday, as reported by Detik Finance.
Competing with Regional Neighbors
Luhut emphasized the urgency of establishing a family office to keep pace with neighboring countries. He argued for a shift in mindset to ensure the program benefits both Indonesia and its investors.
“We don’t want to fall behind our neighbors. We need to rethink how we approach this, not just focusing on our gains but also on what benefits investors,” he stated.
Indonesia has lagged behind Malaysia in implementing family office structures. According to Luhut, Malaysia’s competitive incentives have been a key attraction for wealthy investors. “We need to offer more competitive incentives. Otherwise, we’ll lose out,” he stressed.
The DEN is collaborating with the Ministry of Finance to finalize the family office framework. Luhut expressed optimism that the program could be realized soon.
Family Office
A Family Office is a comprehensive financial structure to manage family wealth, encompassing investment strategies, tax planning, and inheritance management. Indonesia is banking on this model to attract affluent families worldwide, aiming to position itself as a premier investment hub in Southeast Asia.
The initiative is expected to draw significant global investments, providing a boost to Indonesia’s economy and enhancing its competitive edge on the international stage.
By establishing Family Office frameworks, Indonesia seeks to capitalize on the untapped potential of high-net-worth investors who often gravitate toward countries with more favorable investment policies.
The move aligns with the government’s vision of fostering a more inclusive economic growth model, inviting global investors to participate in Indonesia’s evolving financial landscape.
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The development of Family Offices was a pivotal step toward bolstering Indonesia’s economic sectors and reinforcing its role as a key player in the global economy. By implementing this initiative, the nation hopes to cement its status as a destination for sophisticated wealth management and long-term investment opportunities.
(Raidi/Agung)
