Jakarta. National Economic Council (DEN) Chairman Luhut Binsar Pandjaitan said on Sunday that Indonesia has the potential to attract up to $500 billion in assets through the development of a family office ecosystem aimed at serving ultra-high-net-worth individuals and global investors.

According to Luhut, the initiative could generate substantial capital inflows while strengthening investor confidence and enhancing Indonesia's credibility as an international investment destination.

His remarks came ahead of an international forum scheduled to take place in Bali on July 18, where the government plans to invite prominent global investors and business leaders to explore investment opportunities in Indonesia.

“Based on what I heard last night, there is potential for around $500 billion in funds to come in. Of course, they first want to see how Indonesia performs,” Luhut said in Jakarta.

Luhut added that the proposed family office framework is unrelated to government financing or the state budget, addressing concerns previously raised by Finance Minister Purbaya Yudhi Sadewa.

“Family offices should not be linked to the state budget. They have nothing to do with government financing,” he said.

Family offices are private wealth-management entities that oversee investments, financial planning, and asset management for ultra-wealthy individuals and families. Countries such as Singapore, the United Arab Emirates, and Switzerland have emerged as major hubs for family offices by offering favorable regulatory frameworks, investment opportunities, and legal certainty.

Luhut said Indonesia had been relatively slow to pursue the concept compared with other jurisdictions that have successfully attracted global wealth.

“I first proposed this early last year. Had it been implemented then, significant funds might already have entered Indonesia. Investors from the Middle East, including Dubai and Abu Dhabi, are looking for safe investment destinations amid ongoing geopolitical conflicts,” he said.

According to Luhut, the government is currently preparing the operational framework for a family office ecosystem, including the development of supporting digital platforms and administrative systems.

He said the initiative is expected to strengthen Indonesia's investment appeal and improve international confidence in the country's financial and regulatory environment.

“I am confident this can work, as long as we are united and do not create unnecessary internal disputes,” Luhut said.

The proposal forms part of broader government efforts to attract long-term foreign capital and position Indonesia as a regional hub for investment and wealth management at a time of heightened global economic and geopolitical uncertainty.