Jakarta (ANTARA) – Indonesian Finance Minister Purbaya Sadhewa is back in the discussion thanks to her declaration that she will not spend funds from the State Revenue and Expenditure Budget (APBN) on development costs family office in Bali.
“I will not distort the budget in that case,” he said on Monday (10/13) at the office of the Directorate General of Taxes (DJP) of the Ministry of Finance (Kemenkeu) in Jakarta.
Purbaya focuses more on channeling APBN funds appropriately and there is no budget leakage.
Family office it was a proposal from the President of the National Economic Council (DEN), Luhut Binsar Pandjaitan, when he was still Coordinating Minister for Maritime Affairs and Investment (Menko Marves) under the leadership of President Joko Widodo.
More precisely, Luhut gave a speech family office It was mid-May 2024, at the delegates of the 10th World Water Forum (WWF) in Nusa Dua, Bali. But really, what is it? family office?
Read also: OJK proposes a ‘family office’ at Nusantara Financial Center IKN
Definition family office
Family office it is an institution or trading company that will manage the finances of conglomerates or the richest families.
Training family office in Indonesia, was launched in 2024 and implemented from February 2025, with the short aim of attracting more investment to Indonesia.
Please note that the conglomerates in question are those that have a wealth of at least USD 10 million or the equivalent of IDR 166.05 billion, whether they are local or foreign conglomerates.
Ways of working family office i.e. manage conglomerates’ funds on a long-term basis by providing various services, such as investment management, tax planning and asset management.
Additionally, fund owners will receive tax incentives as long as they invest in ongoing projects in Indonesia.
Family office different from conventional financial institutions, because it not only manages the wealth of the conglomerate but also manages long-term investment strategies. The goal is to maintain the wealth of the conglomerate from generation to generation.
Read also: Luhut will propose a ‘family office’ to Prabowo in February 2025
There are no precise rules regarding the services that will be provided by family office. Because in addition to investment management, tax planning and wealth management, family office it can also provide services according to the conglomerate’s own needs.
This can take the form of budget planning, travel planning, household staff management, payroll management, legal and accounting services, insurance arrangements, family wealth transfer management and more.
Family office related to investment management, wealth and inheritance management, philanthropic management, tax services, administrative services and legal services.
So that, family office It will require many experts in various fields to perform their tasks in managing the conglomerate’s wealth.
Family office It consists of two forms, namely:
- Single-Family Offices (SFOs), which manage only the assets or assets of a conglomerate family
- Multi-Family Offices (MFOs), which manage the wealth or assets of more than one family.
Also read: Purbaya has no plans to provide APBN for family offices
Purpose of the training family office in Indonesia
The purpose of his training family office in Indonesia they are as follows.
- Attract investors to invest in Indonesia, where family office This figure is expected to generate up to $500 billion in the coming years.
- Opening up new job opportunities for Indonesians.
- Create stability in the financial market through good risk management.
Advantages family office in Indonesia
Along with the purpose of its training family office in Indonesia, the benefits include an increase in capital circulation in Indonesia, as well as an increase in gross domestic product.
It can therefore create job opportunities through investment and local consumption, as well as encourage long-term economic growth and financial stability in Indonesia.
Family office This is also expected to encourage the growth of the financial services sector in Indonesia.
Other than that, if family office If it is successfully implemented in Indonesia, Indonesia’s reputation as an investment destination country can increase in the eyes of global investors.
Through family officeLuhut estimated that Indonesia could receive additional state revenue of $100-200 million.
However, there are still risks that can occur. Risk of family office it’s happening money launderingthe act of money laundering abuse.
The high level of secrecy and activities involving multiple jurisdictions are often used to disguise the source of illegal funds.
Even complicated ownership models can potentially be used to mask the true identity of the owner. Therefore, caution and careful consideration are required before training family office.
Read also: DEN plans to develop a KEK Financial Center-Family Office in Bali
Countries that have already done so family office
Family office It is active in various countries, such as Singapore which has 1,500 companies and Hong Kong with 1,400 companies.
Apart from that, it also has properties in the United States, North America, Switzerland, England, Abu Dhabi, Europe, China, Dubai and Australia.
A certain number of family office he is also known around the world for possessing highly valuable assets. These include Walton Enterprises LLC in North America, Cascade Investment, Bezos Expeditions in the United States, Pontegadea Informaziones in Spain and Waycrosse Inc in Canada.
Read also: The Ministry of Finance is still reviewing incentives for family offices
Read also: The DEN “family office” team and the coordinating Ministry of Economy will work starting tomorrow
Reporter: Putri Atika Chairulia
Publisher: Suryanto
Copyright © ANTARA 2025
Automatic retrieval of content, crawling or indexing by artificial intelligence on this website is strictly prohibited without written permission from ANTARA news agency.
About The Author
