Jakarta. Finance Minister Purbaya Yudhi Sadewa has refused to allocate state funds to support a proposed family office hub in Bali, a project spearheaded by National Economic Council (DEN) Chairman Luhut Binsar Pandjaitan.

Family offices are private firms managing the wealth and investments of ultra-rich families, typically with assets exceeding $50–100 million

Speaking to reporters on Monday, Purbaya said the government’s budget would not be redirected to finance the initiative, which he believes should be independently developed by DEN. “I’ve heard about that family office idea for a while, but let them build it themselves if they can. I won’t shift any budget there,” he told reporters at the Finance Ministry’s Directorate General of Taxes office on Monday.

The minister stressed that his priority remains ensuring public funds are spent effectively and transparently. “We focus on allocations that are on target, on time, and without leaks,” he said, adding jokingly, “If they need help, I’ll give them my prayers.”

Purbaya, who previously worked under Luhut at the Presidential Staff Office and the Coordinating Ministry for Maritime Affairs and Investment, admitted he has yet to see a clear concept of the proposed family office plan. “I don’t really understand the concept. Although Mr. Luhut often talks about it, I’ve never seen what it looks like, so I can’t comment further,” he said.

The family office project aims to position Bali as a financial hub capable of attracting global wealth managers, private equity firms, and ultra-high-net-worth individuals. According to a Bloomberg report, the initiative is part of a broader effort to lure international capital to Indonesia by offering a competitive alternative to Singapore, Hong Kong, Abu Dhabi, and Dubai.

In 2024, Luhut held talks with Bridgewater Associates founder Ray Dalio and members of the Porsche family to discuss potential investments. He said both expressed interest in establishing family offices in Indonesia, particularly in Bali. “This country needs to be competitive. If we can compete in terms of family offices, people will come here,” Luhut said at the time.

Former Tourism Minister and Saratoga Investama Sedaya cofounder Sandiaga Uno earlier estimated that Indonesia could attract as much as $500 billion in managed funds through family offices if the concept succeeds.