Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, has responded to Finance Minister Purbaya Yudhi Sadewa’s remarks regarding the formation of family offices − private wealth management firms designed for Indonesia’s ultra-rich.

Earlier on Monday, October 13, 2025, Purbaya emphasized that the government would not use the state budget (APBN) to finance the establishment of family offices. Luhut agreed with that stance, saying the plan was never intended to rely on public funds.

“There’s nothing wrong with that (not using the APBN). Indeed, there’s nothing that needs to be funded by the state,” Luhut said at Hotel JS Luwansa in Jakarta on Thursday, October 16, 2025.

According to him, the funding structure for Indonesia’s future family office ecosystem will come entirely from private investors, particularly from the assets of wealthy individuals being managed.

“They’ll place their money here in Indonesia, and we won’t tax it when they deposit it. But once they invest in Indonesian projects, that’s when we apply taxation,” Luhut cited.

He underscored that confidentiality and security will be guaranteed for investors. He said the success of the program depends on investor trust in the Indonesian government.

“That’s why we must create special economic zones that truly operate like those in other international financial hubs − ensuring investors’ money is safe,” he said.

Competing with global financial centers

Luhut revealed that the family office concept has been in discussion since his tenure as Coordinating Minister for Maritime and Investment Affairs. He expressed confidence that the initiative would attract strong international interest.

“Potential investors are from everywhere. Some who currently keep their money in Singapore or China might start considering Indonesia. There’s a lot of interest,” he noted.

Luhut said he hoped the family office framework could be established soon, especially under the leadership of the new Finance Minister.

“With the new minister, I believe the process can move faster,” Luhut said.

If implemented, Indonesia’s family office policy could transform the country into a new regional wealth management hub, competing with Singapore and other established financial centers in Asia − while keeping Indonesian capital closer to home.