The government is preparing a major meeting in Bali this July to discuss the establishment of family offices as part of efforts to attract global capital flows into Indonesia.
Luhut Binsar Pandjaitan, Chairman of the National Economic Council, said the initiative is aimed at positioning Indonesia as a global wealth management hub while drawing new investment into the country.
“The President gave further instructions regarding the International Financial Center, Family Office, which will be held around July in Bali,” Luhut said during a press conference at the Presidential Palace on Tuesday, June 9, 2026.
He noted that the potential inflows are significant, with estimates reaching hundreds of billions of US dollars if the investment ecosystem and governance are well‑established.
“We hope there is potential, perhaps hundreds of billions of dollars, to flow into Indonesia. We must safeguard this potential with the positive news about Indonesia,” he said.
Zero Tax Incentives to Attract Investors
To support the plan, Luhut emphasized the need for stronger governance, digitalized public services, and investor confidence in Indonesia’s economic outlook.
He explained that the family office scheme will allow large investors, both domestic and foreign, to place funds in Indonesia with initial zero tax incentives. Taxes will only apply once the funds are invested in domestic projects.
“The issue is how to ensure that our people and foreigners invest their money in Indonesia, with zero tax, and then once they are in Indonesia, they will be taxed, because they are invested in many projects in Indonesia,” he explained.
According to Luhut, similar models have been adopted in global financial centers such as Singapore, Hong Kong, and Abu Dhabi. He added that many foreign investors are keen to invest in Indonesia, provided there is legal certainty and sound governance.
Sources : Kontan
Feat Image : via AntaraNews/Ni Putu Putri Muliantari
