Financial Centre and Family Offices to Boost Confidence in Indonesia
JAKARTA, DDTCNews - The Chairperson of the National Economic Council (Dewan Ekonomi Nasional/DEN in Indonesian), Luhut Binsar Pandjaitan, has stated that the establishment of a financial centre and family offices will increase investors' confidence in Indonesia.
Luhut said the financial centre and family offices are instruments for establishing legal certainty in Indonesia. Investors' confidence in placing stated capital in Indonesia's financial centre through family offices will also boost confidence in the Indonesian economy more broadly.
"A year and a half ago, the proposal was for an international financial centre with family offices there. My actual intention at the time was to build our credibility regarding the law, because we are known for being inconsistent on legal matters," said Luhut on Thursday (25/6/2026).
According to Luhut, the financial centre planned to be located in Bali will adopt common law and recruit arbitration judges from abroad to establish trust and confidence.
Luhut also claimed that a number of high-wealth individuals (HWIs) are interested in establishing family offices at Indonesia's financial centre. Numerous wealthy individuals wish to establish family offices in Indonesia as it is regarded as a safe location.
"They said, in Dubai and Abu Dhabi, during the war, 'You had already spoken about family offices. What is the status? We want a safe area'," said Luhut.
On another note, the establishment of a financial centre in Indonesia is accommodated by Article 248A of Law 4/2026 concerning the Amendment to Law 4/2023 on the Development and Strengthening of the Financial Sector (pengembangan dan penguatan sektor keuangan/P2SK in Indonesian).
That Law defines a financial centre as a zone with financial and administrative independence and certain legal specificities that adopts, incorporates, applies nd/or aligns with international principles and/or standards.
Business activities in the said zone encompass financial sector activities, financial sector support activities and other sectors. Indonesia's international financial centre will subsequently be managed by the board of Indonesia's international financial centre.
The administration of the financial centre will be regulated under a separate law entitled the Law concerning Indonesia's International Financial Centre, which is targeted for completion within 3 months. (dik)
