Indonesian government, under the leadership of President Joko Widodo, is taking significant steps to establish family offices within the country. Recognizing the growing demand among ultra-high-net-worth (UHNW) individuals and international investors, a new regulatory framework is being developed and is expected to be finalized by October 2024.Â
This strategic move is set to position Indonesia as a premier destination for global wealth management, making it a highly attractive option for foreign investors seeking a secure and sophisticated environment to manage their private fortunes.
What Are Family Offices?
Family offices are specialized entities that cater to the complex wealth management needs of UHNW families, typically with net worths ranging from USD 50 million to USD 100 million.
These private offices offer a wide range of services tailored to preserve and grow family wealth. While the definition of a family office may vary, the services they provide are generally comprehensive and includes:
Scope of Services | |
Investment management | Portfolio investment management Real-estate management Private equity and other assets |
Admin services | Asset custody and aggregation Accounts consolidation Records, cash flow, expenses and payroll management Concierge services |
Legal services | Legal advisory and structuring Trusts and fiduciary structures Banking, investments, mergers and acquisitions |
Tax services | Tax planning Tax compliance Tax filing |
Wealth and legacy planning | Family governance/planning Arrangement of family deeds Next-generation education planning |
Philanthropy | Grant reviews Grantmaking Project management  |
This wide array of services offered by family offices highlights the intricate and multifaceted nature of managing significant family wealth, addressing challenges such as inflation, market volatility, and economic downturns.
Rising UHNW Population and Its Impact
Indonesia is rapidly emerging as a leading center for family offices, following the footsteps of established markets like Singapore, China, and the UAE. The surge in family offices, particularly in Asia, is driven by the fact that the region’s wealthy population is growing faster than anywhere else in the world.
According to the Knight Frank Wealth Report 2024, approximately 35 new UHNW individuals are emerging daily, bringing the total to around 230,000—an increase of nearly 40% from 2023. With a projected growth of 38.34% between 2023 and 2028, the demand for wealth management services is expected to rise sharply.
Indonesia’s Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, has emphasized the country’s potential to establish itself as a Wealth Management Centre.
He points to Indonesia’s strong economic growth, stable political conditions, and neutral geopolitical stance as key factors that make the country an ideal choice for family offices. The Minister also estimates that Indonesia could generate up to USD 200 million from the establishment of family offices.
Why Invest in Indonesia?
Indonesia’s steady economic growth, stable political environment, and expanding market make it a prime destination for global investors. By investing in Indonesia, you can capitalize on one of the fastest-growing markets in the world, with access to a rising population of UHNW individuals and a rapidly growing middle class.
To successfully navigate the complexities of entering the Indonesian market, Seven Stones Indonesia provides comprehensive support tailored to your business needs.
Whether you’re looking to establish a new company, manage corporate finances, or secure the necessary visas and permits for business operations, our experienced team is dedicated to ensuring a seamless and successful process.Â
Reach out to us today to discuss your business plan. Partner with us to unlock Indonesia’s immense potential and achieve your investment goals.Â