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Indonesia eyes $100-200 million inflow from family offices, Luhut says
Demand for family offices is set to rise in the Asia region, according to one consultancy company.
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Coordinating Minister for Investment and Maritime Affairs Luhut Panjaitan holds a meeting with Coordinating Minister for Economic Affairs Airlangga Hartarto on Feb. 22, 2024. (The Jakarta Post/Instagram)
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ndonesia is seeking to make itself an alternative hub for wealthy individuals of the region to run their family’s business affairs, with a senior minister suggesting it could see between US$100 million and 200 million flowing into the country’s financial system when implemented.
Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said on Monday that the country would realize the plan by pitching Bali to compete against other already established destinations.
“Later, a lot of rich people will see Bali as an alternative place for them to invest their money in Indonesia, [as they have] in Singapore, Hong Kong and Abu Dhabi. But don’t tax them,” Luhut told lawmakers during a meeting at the House of Representatives.
Read also: Bali to become family office hub, Luhut says
About 9 percent of the total 20,000 family offices around the world are located in Asia and 59 percent of them are situated in neighboring Singapore, according to the 2023 Global Family Office Compensation Benchmark Report released by consultancy firm KPMG.
The report indicated that the Asia region had the highest number of billionaires, with 40 percent of family businesses having established their offices there since at least 2010.
Karmen Yeung, tax partner at KPMG Private Enterprises in China said in the report that the firm expected demand for family offices to be on the rise in the region. This was particularly driven by the rapid growth of wealth in Asia and government initiatives promoting the concept.
