The high net worth community in Indonesia has prospered since 2007, increasing in number by two-thirds; thriving even amid the global financial crisis. With the number of millionaires in Indonesia projected to more than double by 2016, opportunities for wealth managers are opening up rapidly.
As of 2011, there are just over 37,400 high net worth individuals (HNWIs) in Indonesia, with a combined wealth of $241 billion, according to research by WealthInsight, the London based global wealth consultancy. Indonesia was among the countries least affected by the 2008 global financial crisis, and it shows in the performance of its wealthy population. The number of HNWIs in the country increased by 67% between 2007 and 2011, while HNW wealth almost doubled during this time – the highest growth for any major country in the world.
Indonesia beats the BRICs, growth in HNWIs
Since 2007, Indonesia’s wealthy population has benefited from rising GDP growth, an appreciation of the Indonesian Rupiah against the US dollar, and strong local equity and real estate markets. Continued strong performance means the total number of millionaires in Indonesia will more than double over the forecast period, exceeding 80,000 individuals by 2016.
The country is home to the world’s largest Muslim population, and while Islamic banking solutions are increasingly accessible (Indonesia‘s Islamic banking sector grew by 40% annually between 2008 and 2012, far outpacing growth in the conventional sector), there are few Sharia-compliant alternatives aimed at wealthy Indonesians. With Muslim HNWIs increasingly looking for Shariah compliance in managing their wealth, Islamic wealth management solutions could be key for wealth sector professionals targeting the country.