Luhut Says Family Office Won’t Use State Budget, Will Get Zero

DEN chair Luhut Pandjaitan said at the 1‑Year Prabowo‑Gibran Government event on 17 October 2025 that the family office plan will not use state budget funds. Financing will come entirely from investors. The government will only provide regulations and a zero‑tax incentive.

He explained that the policy aims to draw wealthy global capital to Indonesia, citing successes in Singapore, Hong Kong and the United Arab Emirates. Luhut noted that a study on adopting common law is being discussed with the Supreme Court. Coordination with the Investment Minister is also underway to draft supportive regulations.

If the family office is established, private investment inflows are expected to rise, supporting the 8 % economic growth target and lessening reliance on the state budget. The finance minister, however, has said no budget will be allocated to the project. The outcome will depend on how effectively the regulatory and tax incentives attract investors. Read the full source at news.ddtc.co.id (https://news.ddtc.co.id/berita/nasional/1814519/luhut-tegaskan-family-office-tak-perlu-apbn-cukup-diberi-zero-tax).