APINDO's Input on the Family Office Development Plan in KEK

The government is reviewing the development of Special Economic Zones (Kawasan Ekonomi Khusus – “KEK”) integrated with Family Offices and other international financial services instruments. Chairman of the Taxation Committee for Banking and Financial Services, Indonesian Employers Association (Asosiasi Pengusaha Indonesia/APINDO), Siddhi Widyaprathama assessed that the government should complete a number of homework (Pekerjaan Rumah/PR) related to licensing and fair legal certainty, before rolling out the red carpet for foreign conglomerates.

"Family Offices are indeed a phenomenon for the super-rich around the world to be able to invest their money. However, before rolling out the red carpet for foreign citizens, it would be better for the government to pay more attention to local investors who until now have also been holding back due to economic and political turmoil," Siddhi explained to Hukumonline

It is known that the plan to establish a Financial Center in KEK is regulated in Law No. 21 of 2023 on the Amendment to Law No. 3 of 2022 on the State Capital City (“UU 21/2023”). Even so, the implementation of this policy will refer to the revision of Regulation of the Government No. 40 of 2021 the Implementation of Special Economic Zones (“PP 40/2021”) which is still being discussed across ministries and institutions to date.