Tangerang, Chief Investment Minister Luhut Binsar Pandjaitan recently met with two of the world’s wealthiest families in Bali to discuss plans for establishing family offices in Indonesia. The meetings were part of a government effort to attract foreign wealth and bolster the national economy.

Luhut had discussions with Ray Dalio, the founder of Bridgewater Associates, the world’s largest hedge fund managing assets worth $124 billion. He also met with members of the Porsche family, owners of the luxury car manufacturer.

“I met with two wealthy families. I had dinner with the Porsche family and Ray Dalio. I spent three days in Bali with Ray Dalio,” Luhut said in Tangerang on Tuesday.

A family office is a private company that handles investment management and wealth management for wealthy families, typically those with investable assets of at least $50–100 million. The goal is to effectively grow and transfer wealth across generations.

Minister Luhut Aims to Establish Family Offices in Indonesia by October 2024

Luhut is moving forward with plans to establish family offices in Bali and the new capital city, Nusantara (IKN) in East Kalimantan, ahead of President Joko "Jokowi" Widodo's term conclusion in October 2024. These family offices will be taxed by the government as part of an initiative to attract foreign wealth and stimulate economic growth. In addition to increasing capital inflows, the family offices are expected to create jobs, encourage investment, and enhance domestic consumption.

Luhut noted that both the Dalio and Porsche families are interested in placing their funds in family offices in Indonesia, particularly in Bali. “This country needs to be competitive. If we can compete in terms of family offices with Singapore, Hong Kong, Abu Dhabi, and Dubai, people will come here,” he said.

He emphasized that the government must focus on what it can offer investors, not just what it can gain. “We shouldn’t only calculate what the government gets. We must also consider what they receive. It needs to be reciprocal. Once they place their funds here, they must invest,” Luhut added.

Once investments are made, the government can impose taxes. “Billions of dollars in funds will strengthen our rupiah and foreign exchange reserves,” Luhut explained.