Luhut Pandjaitan, the head of Indonesia’s National Economic Council (DEN) and presidential advisory board, has suggested launching a family office program in February to help the country attract foreign investments from high-net-worth individuals (HNWIs). President Prabowo Subianto has approved the initiative, though an exact start date has yet to be finalized.
A family office is a private firm that offers wealth management and advisory services tailored to affluent individuals or families, managing significant investable assets. Speaking on Wednesday, Luhut emphasized the urgency of implementing the program, noting that Indonesia has been studying this concept for some time and aims to stay competitive with neighboring countries.
Luhut highlighted Malaysia’s recent move to establish a family office program in Johor’s Forest City, set to begin in early 2025, offering competitive incentives to attract wealthy investors. He expressed concern about falling behind Malaysia, which has created the Johor Economic Special Zone, and emphasized Indonesia’s commitment to offering better incentives to maintain its edge.
This initiative reflects Indonesia’s broader effort to enhance its business environment and attract global investors in a rapidly evolving economic landscape.
