Luhut Panjaitan Opens Door for Family Offices in Bali; Legal Certainty Is Key
BeritaBali reports that, in the view of Luhut Binsar Pandjaitan, the chairman of the National Economic Council (DEN), Bali has the potential to become a hub for “family offices”—private wealth management firms—as part of larger plans for the development of Private Financial Investment Institutions (PFII).
Pandjaitan said Bali is a region of interest for major investors, though the government is still evaluating the most suitable location and operating framework.
”It is certainly a possibility; it just depends on where the best fit is. But from what I’ve heard from many major investors, they favor Bali,” Luhut said during a press conference at the DEN Office on Tuesday, 27 October 2026.
The government is currently benchmarking family office practices across eight countries, including Singapore, Abu Dhabi (UAE), Dubai (UAE), and Gujarat (India). This study will form the basis for a model that attracts investment while safeguarding national interests and ensuring legal certainty.
Although Bali is under consideration, the final decision regarding the location for these “family offices” awaits final direction from President Prabowo Subianto. The government has also emphasized that this framework must not be misused as a vehicle for tax avoidance.
Luhut noted that legal certainty is a critical factor for foreign investors before committing capital to Indonesia. Several prospective investors—including those from the Middle East—have expressed interest, yet they remain concerned about legal guarantees and investment security amidst global geopolitical uncertainty.
”Legal certainty is absolutely vital for all investors,” Luhut remarked during the press conference at the DEN office on Tuesday, 27 October 2026.
According to Luhut, Indonesia has a significant opportunity to attract global investment capital by developing “family offices.” He pointed to Singapore as an example, noting that the country successfully attracted up to US$ 30 billion in funds in just one quarter.
”If we let this opportunity pass, they will simply look elsewhere to land,” warned Luhut.
To accelerate policy formulation, the National Economic Council (DEN)—in collaboration with the Coordinating Minister for Law, Human Rights, Immigration, and Correctional Affairs, Yusril Ihza Mahendra, and several legal experts—is conducting an in-depth review of the relevant regulations. The government aims to complete the review within about one week, after which it will submit it in writing to the President.
”Most importantly, there must be clear legal certainty,” Luhut stated.
The DEN has also involved the Attorney General’s Office, the Corruption Eradication Commission (KPK), and the parliament in these discussions. Including these institutions is intended to help draft regulations that accommodate investors’ needs without compromising the state’s interests.
Luhut emphasized that the regulatory overhaul is not intended to eliminate provisions regarding state losses; rather, it aims to clarify legal boundaries so that their application does not create doubt or uncertainty for business operators.
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