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.”

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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.”