The anticipated growth in affluent population in Indonesia, comprising mass affluent (holding liquid assets of US$50,000–1m) and high-net-worth (HNW) population (holding liquid assets of more than US$1m) individuals, over the next three years represents a significant opportunity for wealth managers to capitalize on, according to GlobalData, a leading data and analytics company.
GlobalData’s latest report, ‘Indonesia Wealth Management: Opportunities and Risks to 2022,’ reveals that the number of affluent individuals recorded an average annual growth rate (AAGR) of 7.3% between 2014 and 2018, rising from 943,370 in 2014 to 1.3 million in 2018.
The number is expected to grow by 26% from 1.3 million in 2018 to 1.6 million in 2022.
Shivani Gupta, Wealth Analyst at GlobalData, comments: “The growth will be driven by infrastructure expansion, rising working population and the government’s regulatory reforms aimed at boosting investments.”
The growth in the number of HNW individuals is expected to record an AAGR of 7.7% over the next four years.
Growth will be particularly pronounced in the higher wealth bands, with the number of investors with liquid assets of US$3m–10m and US$10m+ forecast to grow at AAGRs of 10.1% and 9.3%, respectively, depicting the striking wealth inequality that is present in the country.
Shivani concludes: “Increasing employment levels and strong predicted retail investment growth will further push the rise of affluent individuals in Indonesia over the next four years.”
Peyman Khosravani is a global blockchain and digital transformation expert with a passion for marketing, futuristic ideas, analytics insights, startup businesses, and effective communications. He has extensive experience in blockchain and DeFi projects and is committed to using technology to bring justice and fairness to society and promote freedom. Peyman has worked with international organizations to improve digital transformation strategies and data-gathering strategies that help identify customer touchpoints and sources of data that tell the story of what is happening. With his expertise in blockchain, digital transformation, marketing, analytics insights, startup businesses, and effective communications, Peyman is dedicated to helping businesses succeed in the digital age. He believes that technology can be used as a tool for positive change in the world.
