Indonesia looks to host single family offices in Bali

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Indonesia has reportedly reviewed investment laws to host single family offices (SFOs) in Bali, in the hopes of replicating similar wealth management successes in neighbouring countries such as Singapore.

A family office is an entity that has been “established to provide services to high-net-worth families” as defined by consultancy firm KPMG. It is used to manage the wealth of rich families. These include services such as investment management, family administration, family governance and managing luxury assets.

SFOs provide services to one single family rather than members of different families, typically serving one ultra-affluent family.

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Indonesia’s chief investment minister, Luhut Pandjaitan, explained his consideration for setting up SFOs in the country’s most popular holiday destination by saying that if Singapore, Abu Dhabi and Hong Kong can do it, why can’t Indonesia, according to The Business Times.

SFO structures in Singapore have gained much popularity among high-net-worth families due to its ease of integration into any type of wealth planning structure, according to KPMG. They are also granted an exemption by the Monetary Authority of Singapore from certain regulation, given that the SFO only manages assets which are held by members of the same family, it said.

Luhut had also reportedly been approached by affluent families to ask if it was possible for Jakarta to adopt a common law system in Bali as a condition for setting up SFOs, a move he is reportedly actively considering. This is in contrast to Bali’s current civil law system, which relies more heavily on codified statutes and regulations.

Meanwhile, Bali attracts celebrities and wealthy visitors all over the world. The southwest coast of Bali features the “Billionaires Row”, where ultra-luxurious properties on 50-meter-high cliffs prove testament to the affluence present in the region.

Brands have included Bali as part of their marketing campaigns as well. Just recently, fashion brand BOSS returned to Changi Airport Terminal 3 in style with a brand-new pop-up and newly reopened store.

The pop-up, BOSS House Bali pop-up, was themed after the brand’s luxury holiday offering, BOSS House Bali, an immersive showcase of the BOSS lifestyle that will take place on the Indonesian island of Bali in a villa designed by German architect Alexis Dornier.

The pop-up celebrates the brand’s newly reopened store at Changi Terminal 3, which features BOSS’s latest interior concept. It is also the first store in the Asia Pacific region to carry the BOSS luxury menswear range in travel retail, it said at the time.

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