Indonesia is promoting a ‘family office’ model to attract international private capital, hoping to raise up to $500 billion from ultra-high-net-worth individuals, thereby strengthening its position as a regional financial hub.
Indonesia is encouraging the development of a family office ecosystem to attract international private capital, in the hope of mobilizing up to $500 billion of assets from ultra-rich individuals and international investors.
According to well-informed sources in Jakarta, Luhut Binsar Pandjaitan, chairman of Indonesia’s National Economic Council (DEN), said that this plan could chart a new direction for attracting investment capital in Indonesia, while strengthening the country’s position as a regional hub for investment and asset management.
A ‘family office’ is a private wealth management model aimed at individuals and families with substantial wealth, offering services such as investment management, financial planning, wealth preservation, and intergenerational wealth transfer.
In recent years, financial centers such as Singapore, the United Arab Emirates (UAE), and Switzerland have attracted significant global assets by establishing legal environments favorable to this model.
According to the official, Indonesia has fallen behind other countries in developing this sector and is looking to capitalize on the global trend of asset relocation to attract long-term capital.
Meanwhile, many investors from the Middle East, notably from Dubai and Abu Dhabi, are seeking safe havens to diversify their portfolios amid increasing geopolitical instability.
Luhut stressed that this model is intended for private asset management and has no connection to the national budget. The Indonesian government is building the legal framework, operational mechanisms, and the digital platforms necessary to develop the family office ecosystem.
The development model of ‘family offices’ is seen as a relatively new direction for Indonesia in its capital-attraction strategy. Rather than focusing solely on foreign direct investment (FDI), Jakarta aims to access the vast assets managed by ultra-rich families around the world.
