Indonesia's Economic Council Clarifies Family Office Has No Link to State Budget

October 16, 2025 | 07:45 pm

TEMPO.CO, Jakarta - The Chair of Indonesia's National Economic Council (DEN), Luhut Binsar Pandjaitan, explained the discourse on the development of family office, which has recently become a topic of debate following reports of using the State Budget. Luhut stated that the proposal for a family office does not involve the State Budget at all, and he also claimed that this type of wealth management does not harm the state finances.

"Family office has nothing to do with the State Budget. It's about how to attract domestic and foreign individuals to invest their money in Indonesia," said Luhut during a discussion on the One Year of the Prabowo-Gibran Administration at JS Luwansa, Jakarta, on Thursday, October 16, 2025.

A family office is an institution that manages the wealth of wealthy families, adjusting to their needs for directed, efficient, and sustainable management. According to Luhut, this concept benefits the Indonesian economy as wealthy individuals can invest in many domestic projects.

He claimed to have conducted a study to assess this concept. He has even discussed it with the Minister of Investment, Rosan Roeslani, and the Supreme Court regarding its common law. Luhut mentioned that it wouldn't hurt for Indonesia to try this concept, as advanced countries like Singapore have also implemented the same.

The proposal for a family office is not new. In March 2025, Luhut announced that the council was preparing to develop Special Economic Zones (SEZs) for Financial Centers equipped with a family office. He mentioned that this area would serve as the gateway for foreign investment. Luhut claimed that this strategy had been successfully implemented in Abu Dhabi, Dubai, Hong Kong, and Singapore.

Meanwhile, the Vice Chairman of the National Economic Council (DEN), Mari Elka Pangestu, emphasized that the development process of the family office is still in the discussion, planning, and proposal stages. Therefore, she said, the discussion on the family office is not related to the State Budget.

She stated that the government needs to issue new regulations to realize the family office. DEN is currently discussing these regulations. "It's for planning purposes, so there's no need for the budget," said Mari Pangestu when met at Hotel JS Luwansa, Jakarta, on Thursday, October 16, 2025.

Previously, Finance Minister Purbaya Yudhi Sadewa responded to the discourse on the development of a family office proposed by DEN. Purbaya welcomed DEN to establish a family office. However, he emphasized that it would not use the State Budget to assist in its construction.

"I've been hearing about the family office issue for a long time, but I let it be. If DEN can build it on its own, then build it on its own," said Purbaya when met at the Directorate General of Taxation office in Jakarta on Monday, October 13, 2025. He stated that he would focus on ensuring the state budget is used effectively and promptly to prevent budget leaks.

The former Chair of the Board of Commissioners of the Deposit Insurance Corporation (LPS) said that he was not involved in formulating the family office construction plan. Purbaya also mentioned that he did not fully understand the concept of a family office, so he could not comment much.

Anastasya Lavenia contributed to the writing of this article

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