Jakarta. President Prabowo Subianto’s senior economic advisor Luhut Binsar Pandjaitan said Wednesday that Indonesia should start establishing the so-called family offices starting next month.

Luhut also planned on proposing this idea to Prabowo soon.

Indonesia has been mulling setting up family offices, namely a private company that manages the investments and wealth of super-rich families, typically those with investable assets of at least $50-100 million. These firms help the super rich effectively grow and transfer their wealth across generations.

Luhut, who was Former President Joko “Jokowi” Widodo’s chief investment minister, said that the government had been studying this plan since 2024. And it is about time that Indonesia puts the family office plan into motion.

“We must carry on the [family office] plan. Mr. President has even agreed to it,” Luhut said in Jakarta on Wednesday.

He added: “When I meet President [Prabowo], I will tell him that it would be best if we start setting up [the family offices] next month. We have already studied it for a while now.”

According to Luhut, Indonesia should not lose to Malaysia which already has family offices in place. The close neighbor even imposes a 0 percent tax rate for family offices in its Forest City Special Financial Zone.  

During his time as minister, Luhut aimed to have the family offices by October 2024. Former Tourism Minister Sandiaga Uno also said that the potential managed funds under family offices could reach $500 billion.