Purbaya Ensures State Budget Funds Only For Priority Programs, Not For Family Offices

Minister of Finance Purbaya Yudhi Sadives opened his voice regarding the discourse of the Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan to build a family office in Indonesia.

He stated that he did not mind that during the establishment he did not use funds from the State Revenue and Expenditure Budget (APBN) and emphasized that the state budget would not be diverted to fund the formation of family office.

"I've heard about the issue for a long time, but let it go. If the DEN can wake up on its own, then just build it yourself. I will not transfer the budget there," he told the media crew, Monday, October 13.

He added that the main principle in managing the state budget is to ensure that the budget is allocated to programs that are clear, on target, on time, and free from leakage.

"I focus, if you give the right budget, it will be carried out on time, on target and nothing is leaked, that's all," he said.

Purbaya also emphasized that he was not involved in the plan and did not yet have an in-depth understanding of the family office concept in question.

"No, I'm not involved. If I want to pray for it. I don't really understand the concept yet, even though the chairman of the DEN often talks. I've never seen what the concept is, so I can't answer," he said.

Previously, the Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan said that the formation of family office is still ongoing and is expected to be completed in 2025.

"I think it's still running, we're still chasing it, we hope it can be decided by the President soon. Yes, we hope this year we can," he explained to the media crew, Monday, July 28.

Meanwhile, Family office is a forum for world entrepreneurs to store and manage assets in Indonesia.

Previously, Luhut said that the Government was finalizing the formation of a family office.

"We are technicalizing, finalizing, family office," he told the media crew, Wednesday, March 12.

Luhut said that his party is currently working intensively to complete technical aspects and will coordinate with the Coordinating Ministry for the Economy.

However, Luhut said that his party had started this work six months ago and had also asked for input from the main actors, including Ray Dalio, and asked for a direct feedback.

In addition, Luhut conveyed related to support from the Ministry of Finance, asserting that all parties must agree, but the most important thing is that the party who will invest the funds agrees.

Luhut said that in the next few months he would report the progress of the family office's finalization to President Prabowo Subianto and if there was an executive order, his party would implement it.

"We hope that in the next few months the President will stay, because the President has given a go-ahead when he meets the palace, so technically we will report it to the President, if the President has ordered the executive, we will be the executive," he said.

Meanwhile, when asked about the possibility of family office being launched in the first semester of 2025, Luhut said that currently, his party is still working and will report the progress to President Prabowo.

"I think President Prabowo's programs are very good, we just have to see how it is now so that our assistants to the President can coordinate well," he said.