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The National Economic Council (DEN) plans to develop a Financial Center and Family Office Special Economic Zone (SEZ) in Bali Province to attract foreign investment into the country.
DEN Chairman Luhut Binsar Pandjaitan stated on Mar. 21, 2025, Indonesia's foreign direct investment (FDI) level is still lower than neighboring countries, such as Singapore and Vietnam. Luhut also compared Indonesia's low FDI to Dubai. At the same time, capital outflow from Indonesia continue to increase with an average value of US$20 billion per year.
If these conditions are not addressed, industrialization, infrastructure, and growth of productive businesses would be difficult to be developed optimally.
The Financial Center and Family Office SEZ area will be a gateway for foreign funds that will be invested in various real sectors in Indonesia. Luhut also said that investors also have the opportunity to become co-investors with the Investment Management Agency (INA) and the Daya Anagata Nusantara (Danantara) Indonesia.
"This strategy has proven successful in Abu Dhabi, Dubai, Hong Kong, and Singapore," he added.
In order for the Financial Center and Family Office SEZ to succeed, strong policies and an ecosystem that supports quality of life are needed.
"We don't want this financial center to just be a booking center, but [also] a comfortable area to work and live in. Therefore, global-standard facilities such as schools, hospitals, residential, and offices are important factors," he said again.
So far, DEN is considering Bali as a potential location for the Financial Center and Family Office SEZ because the province is already known as a work heaven for global investors and will be one of the candidate areas for the Indonesia Financial Center (IFC).
"We will soon determine the best criteria for this SEZ. If we want to achieve sustainable economic growth, we must build a progressive and competitive financial ecosystem not just as a supporter, but the main accelerator of national development," Luhut said.
The plan was discussed by DEN together with investor Ray Dalio and related ministries and unstitutions via video conference. The discussion was a follow-up to President Prabowo Subianto's meeting with Ray. Luhut stated that the discussion reflected Indonesia's increasingly intense efforts to strengthen the financial sector.
