How Family Business Dynasties Could Unlock the Next Wave of ASEAN Investment

JAKARTA, Investortrust.id — High-level business leaders in Southeast Asia are looking beyond traditional corporate structures and government diplomacy to drive the region's next growth cycle.

Family-owned conglomerates form the bedrock of Southeast Asia's economy, controlling major stakes across real estate, banking, retail, and manufacturing. By formalizing "family-to-family" (FtoF) investment channels, Southeast Asia's largest economies could streamline cross-border dealmaking, lower capital deployment friction, and accelerate regional integration faster than formal trade pacts allow.

Speaking at the Indonesia-Thailand Business Forum at the Fairmont Hotel in Jakarta on Tuesday, Aug. 4, 2026, James Riady, Vice Chairman of Foreign Relations at the Indonesian Chamber of Commerce and Industry (Kadin), urged regional tycoons to build direct family-level alliances.

"This morning I conveyed to the Prime Minister of Thailand and leaders that perhaps it is time for the Indonesian and Thai Chambers of Commerce to foster these family-to-family relations," Riady said during his opening address.

Beyond Government and Corporate Deals

Riady emphasized that relying solely on government-to-government (GtoG) or traditional company-to-company (CoC) frameworks is no longer enough to maximize ASEAN's economic potential.

He cited the decades-long partnership between Indonesia's business community and Thailand's Sophonpanich family—owners of Bangkok Bank—as a playbook for cross-border success. Bangkok Bank's acquisition of Indonesia's PT Bank Permata Tbk highlights how long-term family trust can catalyze major capital flows.

"When trusted business families begin collaborating across borders, investment flows naturally," Riady noted, adding that "trust is more important than investment, and friendship is more important than partnership".

Bridging Two Southeast Asian Powerhouses

The push for deeper business ties comes on the heels of warm diplomatic engagements between Indonesian President Prabowo Subianto and Thai Prime Minister Anutin Charnvirakul in Jakarta. Business leaders view the political goodwill as momentum to align the two largest economies in Southeast Asia.

Thailand brings established competitive advantages in agriculture, food processing, automotive manufacturing, logistics, and the digital economy. Meanwhile, Indonesia offers a massive consumer market, abundant natural resources, rapid industrial nickel and mineral processing, and a expanding demographic dividend.

Riady stressed that the future of the 10-nation bloc depends on deep integration rather than regional competition. "The future of ASEAN will not be built through competition among ourselves, but through deeper integration, joint investment, joint innovation, and long-term trust," he said.