President Jokowi Orders Coordinating Minister Luhut To Form A Family Office Task Force

Coordinating Minister For Maritime Affairs Luhut Binsar Pandjaitan/ANTARA PHOTO/Hafidz Mubarak A/YU

JAKARTA - President Joko Widodo (Jokowi) ordered the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan to form a task force, to design and prepare the implementation of a family-based investment scheme.

"The president has given directions, I was asked earlier to prepare this task force (task unit) in the next month," said Luhut as quoted by ANTARA, Monday, July 1.

Luhut said there were a number of preparations to maximize opportunities for the development of the Wealth Management Center (WMC) which used a family office scheme.

According to him, across ministries and institutions need to formulate several things for the development of the WMC ecosystem in the country, such as the design of taxation systems and regulations that support foreign assets, political stability and a conducive government, asset management service providers, and supportive business environments.

"We have to improve a lot of harmonization of our regulations, which in today's era, are less competitive," said Luhut.

Luhut also emphasized the importance of accuracy in preparing WMC. He does not want WMC to become a money laundering place for capital owners.

"This is now we are working on it carefully. But we avoid money laundering," said Luhut.

Luhut explained that the family office scheme is one of the efforts to attract wealth from other countries for national economic growth.

According to data from The Wealth Report, said Luhut, Asia will become an area with 38.3 percent economic growth in the 2023 '2028 period.

In addition, the increase in the number of world financial assets invested outside the country of origin is also projected to continue to increase.

"Well, this is it. Funds milling around outside developed countries are said to have 11 trillion US dollars that they want to find the place, the cool language is like that," said Luhut.