Sri Mulyani Leaks Family Office Tax Incentives in Indonesia

Jakarta – Finance Minister Sri Mulyani Indrawati explained about the Family Office implementation plan in Indonesia. She admitted that incentives for Family Office are being designed and comparisons will be made with other countries.

Sri Mulyani explained that there are countries in the world that are successful by running a Family Office. However, many have also failed, so further study is needed.

“If the incentives as mentioned by Mr. Luhut in terms of the design of the existence of the Family Office will be like what, we will do benchmarking of the centers of the Family Office in various countries, some are successful, some are not successful, so we learn from there,” said Sri Mulyani, at the Ministry of Finance Complex, Monday, July 22, 2024.

The state treasurer said that based on the rules regarding tax incentives, Indonesia has policy examples of tax incentives to be compared, for example the Tax Holiday and Tax Allowance given to the Capital City of the Archipelago (IKN).

“Regarding tax regulations on tax incentives, we have many lessons such as tax holidays, tax allowances as we have currently provided for IKN, there are also quite a lot of them in the regulatory framework for providing tax incentives,” he said.

“So we see the progress of the discussion of the Family Office itself,” he continued.

Previously, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan claimed that he had just returned from Abu Dhabi, United Arab Emirates (UAE) to learn about Family Office. He has also conveyed the results of his meeting to President Joko Widodo (Jokowi) and President-elect Prabowo Subianto.

Luhut said that many rich people are queuing to put their money into Indonesia. Thus, it is necessary to provide incentives through the family office.

“I have reported to President Jokowi and also the President-elect last night, the issue of what is called family office and family business. Why do we want this family office and family business? Because now there is a lot of money that wants to enter Indonesia. Now we have to provide incentives,” said Luhut (*)

Journalist : Irawaty