Indonesia is reviewing investment laws in hopes of hosting single family offices (SFOs) in the holiday island of Bali, as it looks to replicate the wealth management success of neighbouring Singapore, a cabinet minister said on Wednesday.
SFOs, or private companies set up to manage the wealth and business of rich families, are far more numerous in the city-state than in Indonesia, which is hardly known for wealth management, despite being Southeast Asia’s largest economy.
“If Singapore, Abu Dhabi and Hong Kong can do it, why can’t we have it also?” Indonesia’s chief investment minister, Luhut Pandjaitan, told a parliamentary hearing.
“I think as long as Indonesia gets $100 billion to $200 billion in stages from this policy, it would be great.”
Luhut said rich families had approached him to ask if it was possible for Jakarta to adopt a common law system in Bali, particularly for international arbitration, as a condition for setting up SFOs and he was considering such a move.
Indonesia uses a civil law system.
Proposals for rule changes to lure SFOs are near completion and will be taken to President Joko Widodo for approval, Luhut said, adding they were drawn up after talks with six consultants.
Bali is Indonesia’s most popular holiday destination.
Indonesia has also launched a golden visa scheme granting foreign investors a residence permit for an extended period of up to 10 years in exchange for investment of a certain amount of funds.
Reuters
