Launching of PwC Indonesia Family Office: Building trust enables family businesses to set the groundwork for sustained growth

Jakarta, 16 June 2023 - The notion of how to build trust in business is changing—fundamentally and rapidly.  When it comes to these new measures for earning trust, family businesses will need to do a much better job of both showing and telling: increasing the visibility of their efforts and communicating them consistently to stakeholders.

According to PwC’s 11th Global Family Business Survey, trust from key stakeholders such as  customers, employees, family, and public is required. And when it comes to earning trust, transparent and effective communication is one of the key formulas, among others.

PwC Indonesia hosted the launching of the 2023 PwC Global Family Business Survey and PwC Family Office. Irhoan Tanudiredja, PwC Indonesia Entrepreneur and Private Business Leader, stated “Trust has been—and remains—a vital competitive advantage that sets family businesses apart from other companies, where it should come from all stakeholders starting from family as the closest one. From the survey, 60% of family businesses in Indonesia believe that they are fully trusted by family members, below the global average at 74%. In addition, in Indonesia, trust from family members is less prioritised than banks and investors, opposite the global average.”

Irhoan added, “The survey also reveals that two main challenges to build trust with stakeholders are current company culture and disagreements among family members. And from family to business, only 45% say there is a family alignment on company direction.”

Ario Rachmat, President Director PT Adaro Minerals Indonesia Tbk said, “Maintaining a trust relationship among family business members can certainly make a business grow and become profitable. Over time, of course, this has undergone many changes. But what unites us is how we share the same core values ​​and common purpose.”

On the same occasion, Noni Sri Ayati Purnomo, President Commissioner, PT Blue Bird Tbk, added, "We must take steps to make a sustainable business. In our family business, for example, the ESG principle has been instilled from the very beginning in our business, starting with how we properly maintain our operational vehicles. We believe that ESG principles and profitability must align.”

Pandu Sjahrir, Vice President Director PT TBS Energi Utama Tbk, also added, “Building institutions is a priority. For this reason, companies must have the same values, vision, mission and ambitions. If we focus on this, then we can maintain business continuity. In addition, we also have to be persistent, maintain and build relationships with partners, and have a soul to serve. Finally, I think the most important thing is how we can bring ourselves to remain humble."

During the session, PwC Indonesia took the opportunity to launch the “PwC Family Office”. The family office is an organisation created to oversee and manage financial needs of a specific family to help maximise financial interest and investments, reduce complexity and handle the family personal affairs. The holistic solution is leveraging the use of a digital platform called Wealth Compass.

Margie Margaret, PwC Indonesia Family Office Leader “In conjunction with services for Family Office, I am delighted to launch the Wealth Compass application today. This app is to provide family businesses with better visibility into their portfolio, enhance performance and potential opportunities and risk exposure and a more efficient back office, so family business owners can focus on strategic decision-making, instead of data management.”

Family Office becomes more important because of the complexity of the various parts of investment and the needs to preserve and maximise the wealth of the family. The Wealth Compass provides you with real time information and can be tailor made according to each family business’ needs.   

Margie added, “From the survey, Indonesian family businesses stated that creating dividends for family members (78%), protecting the business as the most important family asset (76%) and creating a legacy (76%) are the top three important long-term goals in the next five years.”