The Family Office Scheme Shifts to a Special Economic Zone for the Financial Sector

The Government is refining its strategic measures to attract funds from ultra-high-net-worth individuals and global investors through the establishment of a family office. Unlike the initial discourse, which focused solely on asset management offices, the Government has now shifted the concept to become part of a Special Economic Zone (“SEZ”) for the financial sector.

“So what they referred to as a family office is, in fact, not exactly that. It will be an SEZ for the financial sector. The President has already issued directives and guidance,” said Minister of Finance, Purbaya Yudhi Sadewa.

This measure is further reinforced by the planned amendment to Government Regulation No. 40 of 2021 on the Organization of Special Economic Zones (“PP 40/2021”). This integration is expected to provide a more robust legal framework and a more competitive incentives package compared to merely granting licenses for conventional asset management offices. This includes adopting a business model implemented in Dubai.

“The Coordinating Minister for Economic Affairs will lead the team. We will support it through the necessary implementing regulations,” he added.