Indonesia is preparing a suite of reforms targeting high-net-worth (HNW) individuals, with plans for enhanced tax enforcement, revisions to its Golden Visa programme, and the development of a financial centre in Bali, according to legal expert Zac Lucas, TEP, Head of Private Client Asia at Spencer West LLP.
In a LinkedIn post summarising his remarks at the Hubbis Indonesia Wealth Management Forum 2025 on June 12, Lucas outlined the key takeaways shaping Indonesia’s wealth management strategy.
A central theme was the country’s planned implementation of the Core Tax system—a digital platform integrating income, payments, and Common Reporting Standard (CRS) data. While there is consensus that a wealth or inheritance tax is unlikely before the next tax amnesty, once the Core Tax system is fully operational, such a tax is expected to follow. Authorities are likely to focus on land ownership, which is more difficult to move offshore, thereby limiting the risk of capital flight.
Lucas also noted that enforcement will likely become more targeted and sophisticated, with Core Tax enabling authorities to identify discrepancies and anomalies more efficiently. However, there is concern that CRS data might lead to overreach—particularly where account balances linked to trustees or “protectors” are misinterpreted as being personally owned, potentially triggering unwarranted investigations.
Indonesia’s Golden Visa programme was also spotlighted as an area needing improvement. While the policy offers potential to attract foreign capital and expertise, participants at the forum agreed that its duration, benefits, and cost structure must be refined to compete with global alternatives, such as the UAE’s established model.
Lucas revealed he had been invited to private meetings discussing plans for an Indonesia Financial Centre (IFC) in Bali. The concept reportedly envisions a unique legal and institutional framework, departing from traditional Dutch civil, Sharia, and Adat law systems. If implemented, the IFC could serve as a hub for both domestic and international capital flows, with implications for legal certainty and long-term investment.
Indonesian policymakers are increasingly aware of the large volumes of offshore wealth held in nearby jurisdictions like Singapore. Authorities are said to be considering credible, rule-based mechanisms to encourage the repatriation of this wealth—moving beyond the limited scope of previous tax amnesty schemes. However, these developments may coincide with intensified scrutiny of preferential tax regimes under ongoing omnibus law reforms.
The evolving regulatory landscape underscores Indonesia’s ambitions to position itself as a competitive destination for global investment while tightening oversight on tax compliance and foreign residency programmes.
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