TEMPO.CO, Jakarta - President Joko Widodo or Jokowi convened a meeting with a number of ministers and state officials from the Advanced Indonesia Cabinet on Monday, July 1, to discuss the family office scheme proposed by Luhut Pandjaitan, Coordinating Minister for Maritime Affairs and Investment.

Tourism Minister Sandiaga Uno, Head of the Financial and Development Supervisory Agency (BPKP) Muhammad Yusuf Ateh, Deputy Finance Minister Suahasil Nazara, and Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar were all spotted at the State Palace on Monday morning, at 09:00 Jakarta time.

“Yes, there is an invitation to discussions on strengthening the economy and finances, including the family office. I’ll provide more details after the meeting,” Sandiaga Uno said.

According to Investopedia, a family office is a private company managing investment and wealth for affluent families, typically those with investable assets exceeding $50-100 million. The goal is to facilitate the growth and intergenerational transfer of wealth.

Apart from that, the family office can also handle tasks such as managing household staff, making travel arrangements, property management, daily accounting, and payroll activities. Also, management of legal affairs, family management services, family governance, financial and investor education, as well as coordinating philanthropy and private foundations and succession planning.

Previously, Luhut claimed that Jokowi had approved the establishment of a family office in Indonesia, citing high demand from wealthy families abroad who want to keep their assets in Indonesia.

Luhut explained that a family office's primary function is to retain wealthy individuals' funds within the nation. This, in turn, strengthens Indonesia's foreign exchange reserves and fosters global trust in the country's financial system. Family offices are already well-established in financial hubs like Singapore, Hong Kong, and Abu Dhabi, which could be a reference for Indonesia.

DANIEL A. FAJRI

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