Jakarta. President Joko "Jokowi" Widodo convened ministers and agency heads at Jakarta's Presidential Palace on Monday to strategize on regulations for family office investment schemes. Tourism and Creative Economy Minister Sandiaga Salahuddin Uno highlighted the potential for managed funds to reach $500 billion.

"With total family office funds reaching $11.7 trillion, capturing just 5 percent would mean $500 billion, significant over the next five years," Sandiaga said at the Presidential Palace.

Family offices are private firms managing investment and wealth for wealthy families, typically with $50 million to $100 million in assets, aiming for intergenerational wealth growth.

Sandiaga, co-founder of Saratoga Investama Sedaya, a top Indonesian investment firm, said Chief Investment Minister Luhut Binsar Panjaitan would lead a team to assess regulatory preparation for family office funds.

"We view family offices as a financial cluster facilitating large family investments in Indonesia. We're analyzing potential and regulatory aspects with a dedicated team," Sandiaga explained post-meeting.

He noted forthcoming inter-ministerial discussions for deeper assessments. "We'll conduct cross-sector studies next month to seize this opportunity," Sandiaga added.

Sandiaga highlighted Indonesian family offices' current foreign investments. "An immediate win is directing these investments domestically," he noted.

The government aims regulatory adjustments to attract family office investments. "Indonesia offers financial access, green investment activities, and philanthropy appeal," Sandiaga outlined.

He envisioned Indonesia competing with Singapore, Dubai, and Hong Kong in attractiveness. "Bali garners strong global family office interest, despite regulatory reviews already in place like in IKN (Nusantara's new capital)," he concluded.

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