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View all search resultsDoubts over Bali’s readiness to become a financial hub
The government has set its sights on turning Bali into a global financial hub as it seeks to move forward with the family office plan thought up by the previous presidential administration, but there are doubts as to whether the resort island is cut out for such a role.
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Foreign tourists are pictured walking on February 2016 on Bali's famous Kuta Beach. (Antara/Fikri Yusuf)
T
he government has set its sights on turning Bali into a global financial hub as it seeks to move forward with the family office plan thought up by the previous presidential administration, but there are doubts as to whether the resort island is cut out for such a role.
National Economic Council (DEN) spokesperson Jodi Mahardi told The Jakarta Post on Friday that risk assessments for the initiative were underway with regard to regulatory and governance aspects as well as economic implications.
“Discussions are ongoing between the DEN and relevant institutions to ensure the initiative is carefully and responsibly designed,” he stated.
The plan to make Bali a financial hub that could rival Singapore and Hong Kong originated from a proposal made last year by Luhut Pandjaitan, who served as coordinating maritime affairs and investment minister at the time and now helms the DEN.
The initiative, which initially focused on the idea of attracting business leaders to set up family offices, recently sparked debate among officials, with Finance Minister Purbaya Yudhi Sadewa ruling out state budget funding.
Luhut responded by saying the family office plan would not rely on the state budget, as it is designed to attract both domestic and foreign investors to place their funds in the country under a zero-tax scheme in the initial phase.
“However, we must create certainty. They [investors] ask for a common law, so we’re conducting the study [...], we’ve rarely done proper studies for a project. We tend to go straight into execution,” Luhut said on Thursday.
