Disclaimer: This article is an editorial that highlights the problems in Indonesia today
PIKIRAN RAKYAT - Indonesian President Joko Widodo (Jokowi) will soon form a task force on family office or family-based fund management. The task force's duties will include designing towards the preparation of the implementation of the investment scheme.
President Joko "Jokowi" Widodo has ordered Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan to form a task force to design and prepare the implementation of a family office investment scheme.
"The president has given instructions, I was directed to prepare this task force within next month," Luhut said, as quoted by his official Instagram account, @luhut.pandjaitan, on Monday.
Luhut stated that there are a number of preparations to maximize opportunities from the development of the Wealth Management Centre (WMC) with a family office scheme. In its implementation, he said there is a need for cooperation between cross-ministries and institutions.
Many parties must be involved to formulate several things related to the development of the WMC ecosystem in the country. These include designing a tax and regulatory system that supports foreign assets, conducive political and government stability, asset management service providers, and a conducive business environment.
"We have to improve a lot of harmonisation of our regulations, which in this era, are less competitive," he said.
Luhut then emphasised the importance of thoroughness during the WMC preparation. He added that we shall not let the WMC become a money laundering tool for capital owners.
"We are working on this carefully. But we avoid money laundering," said Luhut. Luhut considers this is one of the country's efforts to attract wealth from other countries as a pathway to national economic growth.
He cited The Wealth Report, states that Asia will become a region with 38.3 per cent of economic growth within the 2023-2028 period.