Can Bali become a wealth-management hub?
Indonesia’s government hopes so. During the summer, senior government officials floated the notion of transforming the verdant and heavily touristed island into a leading destination for super-wealthy family offices.
Investment minister Luhut Pandjaitan said in June that wealthy families from around the world would come to see Bali as an “alternative place… to invest”, adding: “If Singapore, Abu Dhabi and Hong Kong can do it, why can’t we?”
He told a parliamentary hearing in Jakarta: “I think as long as Indonesia gets $100 billion to $200 billion in stages from this policy, it would be great.” Pandjaitan later claimed to have secured approval from president Joko Widodo.
As ambitions go, it’s undeniably bold. And as ambitions go, it is undeniably quirky.
Assuming Pandjaitan is speaking on behalf of not only the government but also the country’s popular and outgoing president, it’s helpful to explore why Indonesia might choose this moment in time to devote more of its attention to the thorny issue of working to retain more of the private wealth its citizens create.
In the latest issue of its biannual World Economic Outlook, the IMF tips Indonesia’s economy to expand by 5% in 2024 and 5.1%