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Luhut pushes for Singapore-like arbitration rules to lure family offices
Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan has said that arbitration rules modeled after Singapore’s would create legal certainty to attract more investment, including family offices, to Indonesia.
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Chinese Foreign Minister Wang Yi (left) meets Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan (right) ahead of the fourth high-level dialogue and cooperation mechanism (HDCM) between Indonesia and China in Labuan Bajo, East Nusa Tenggara, on April 19, 2024. (Office of the Coordinating Maritime Affairs and Investment Minister/-)
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oordinating Maritime Affairs and Investment Minister Luhut Pandjaitan has proposed creating a legal framework that includes arbitration rules like those enforced in Singapore to help attract more investment, including family offices, to Indonesia.
Speaking at the launch ceremony for the Mineral and Coal Information System (Simbara) on Monday, Luhut claimed that making arbitration, where disputes between parties from different countries are resolved outside of the jurisdiction via an impartial third party, final or non-appealable was “simple” and would bring legal certainty.
“When the [arbitrator] in the arbitration court that comes from abroad — international, certified ones — have decided A, then A [is the final decision], no more appeal. If there are appeals, that creates room for [foul play],” said Luhut, adding he had conveyed this to President Joko “Jokowi” Widodo.
In a press conference following the ceremony, the senior minister said final arbitration was practiced in Singapore, Abu Dhabi and Hong Kong, which were three of Asia’s main hubs for family offices, hence his proposal to put something similar in place in the archipelago.
“Implementing this will bring about legal certainty in our country, and there are so many people who want to put their money in Indonesia,” claimed Luhut.
A family office is an organization or firm responsible for managing the wealth of ultra-rich individuals or families. The entity differs from typical asset managers since it is built solely for managing the assets and investments of a small group of individuals or families.
Read also: Bali to become family office hub, Luhut says
