Finance Minister Purbaya Yudhi Sadewa has rejected the idea of using state budget (APBN) funds to establish a family office in Indonesia.

The concept of a family office was originally proposed by Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, during his tenure as Coordinating Minister for Maritime Affairs and Investment under Indonesia’s 7th President, Joko Widodo (Jokowi).

Purbaya stated that the development of a family office is allowed, as long as it does not use government funds. He emphasized that APBN allocations will not be diverted for this purpose.

“I have heard about this issue (family office) for a long time, but let it be. If DEN can build it on their own, let them do it. I will not divert APBN funds there,” Purbaya said at the Directorate General of Taxes (DJP) headquarters, Jakarta, Monday (13/10), as quoted by Detik Finance.

He assured that budget allocations will be provided only for programs that are appropriate, so implementation can be timely, on target, and free from leakage.

“I focus on giving the right budget, then implementation will be on time, on target, and without leaks, that’s all,” he added.

Purbaya also clarified that he is not involved in the establishment of the family office and admitted that he does not yet fully understand the concept.

“No, I’m not involved. If needed, I can pray for it. I don’t fully understand the concept yet. Although the DEN Chairman often talks about it, I’ve never seen what the actual concept is, so I can’t answer,” he explained.

Earlier, Luhut Binsar Pandjaitan confirmed in late July that the family office plan would continue despite changes in government.

“I think it’s still ongoing, we are pursuing it continuously. We hope the president can make a decision soon,” Luhut said at the Indonesia Stock Exchange (BEI), Monday (28/7).

He added that the family office is targeted to be operational within this year.

“Yes, we hope it can be established this year,” he clarified.

The family office plan was first proposed in May 2024 when Luhut served as Coordinating Minister for Maritime Affairs and Investment during the Jokowi-Ma’ruf Amin administration.

According to Luhut, several countries, including Singapore, Hong Kong, and Abu Dhabi, already have numerous family offices, with Singapore alone having 1,500, making it a reference model for Indonesia.

The government projects that investments brought in by family offices could reach US$500 billion or approximately IDR 8,151.95 trillion in the coming years.
This figure represents 5% of the total assets held by family offices globally, estimated at US$11.7 trillion.

Family offices typically provide services such as investment management, financial planning, and tax planning.
Luhut stated that foreign investors placing funds through a family office would not be taxed, except when such investments create jobs in Indonesia.