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Bali to become family office hub, Luhut says
Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said the government was pushing for Bali to welcome privately held companies handling family-controlled business operations, pitching the island as an alternative base to Hong Kong and Singapore.
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Tech billionaire Elon Musk (left) walks with Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan during his arrival at I Gusti Ngurah Rai International Airport in Denpasar, Bali on May 19, 2024. (AFP/Sonny Tumbelaka)
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oordinating Maritime Affairs and Investment Minister Luhut Pandjaitan has pitched Bali as an alternative hub for wealthy individuals of the region from where to run their family’s business affairs, pitting the island against the popular locations of Hong Kong and Singapore.
The number of Singapore-registered family offices, which manage tens of billions of dollars in private wealth, has skyrocketed from 50 in 2018 to 1,100 by the end of 2022, according to the Monetary Authority of Singapore, as reported by the Financial Times.
Most of the family offices in Singapore were set up during the pandemic, and a long line of businesspeople are still looking to make the city-state their base, according to the same article, published in November last year, prompting increased scrutiny from local authorities to prevent money laundering.
“There has been a discussion about urging Bali to become a hub for family offices like Hong Kong and Singapore,” Luhut said on Saturday, as reported by CNBC Indonesia.
The vast majority of businesses in Indonesia are family-owned. According to PwC data from 2014, this applied to 95 percent of all businesses in the country at the time.
Read also: Indonesia’s family businesses could be a gold mine if mindsets change
The senior minister said he had met with 20 delegations from various countries and major companies, who had shown interest in Bali and were willing to invest through family offices there.
