Luhut Regarding Family Office: No Business With The State Budget

Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan emphasized that the plan to form a family office will not involve the use of the state budget (APBN).

According to Luhut, the growing polemic between his party and the Minister of Finance (Menkeu) Purbaya Yudhi Sadive has no basis. The reason is, the initiative does not involve government funds at all.

"Keep making a fuss, this is saying, the chairman of the DEN with the Minister of Finance, there is no APBN. Who asked for the state budget? It has nothing to do with the state budget at all," said Luhut in the 1st Anniversary seminar of the Prabowo-Gibran Government in Jakarta, written Friday, October 17.

Luhut explained that discussions about family office were carried out with a number of institutions, including the Ministry of Investment and the Supreme Court.

He said this project would be financed by billionaires who put their funds in Indonesia. Therefore, he considered that there was nothing wrong with the statement of the Minister of Finance, Purbaya Yudhi Sadive, who did not want to finance the project with the state budget.

"There's nothing wrong. Yes, nothing wants to be financed. The one who costs him himself. Because the person who put the money there," he said.

Luhut explained that in this family office, the government only acts as a facilitator by providing incentives in the form of tax exemptions when funds are entered into Indonesia.

Furthermore, Luhut said the new tax would be imposed when the funds were invested in various domestic projects.

"We don't tax his time, but when he invests in Indonesian projects, that's what we tax. We also guarantee the confidentiality and security of his funds," he said.

In addition, Luhut also mentioned that the contribution of the State Budget to the national economy only ranged from 10 to 15 percent, while the rest was supported by private investment.

Therefore, according to Luhut, the government is considered necessary to be friendly to foreign investment so that the target of 8 percent economic growth can be achieved.

He also said the government plans to establish a Special Economic Zone (SEZ) or Special Economic Zone that follows international standards to increase investor confidence.

The plan, the initial location that is being focused is Bali. Luhut said there was a proposal for all areas of Bali to be used as a SEZ, but the final decision was still waiting for the President's consideration.

"The president is still considering it. But for me, let's try it first in one area, later if it's good then we scale up," he said.

Previously, 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.