The number of high net worth individuals (HNWI) in Indonesia is expected
to triple within the next five years on the back of the nation’s strong
economic growth, according to a research report.
HNWI, at an
estimated 33,000 for 2010, is projected to reach close to 100,000 in
2015, CLSA and Julius Baer said in their Wealth Report for Asia released
Wealth of HNWI in Indonesia will grow at
approximately 21 percent without currency gains, or about 30 percent
annually taking into account rupiah appreciation, the report said.
estimated growth rate would be the fastest among 10 Asian locations,
which includes China, Hong Kong, India, South Korea, Malaysia,
Philippines, Singapore, Taiwan and Thailand, according to CLSA, a
broker, and Julius Baer, a Swiss bank.
“The forces for wealth
creation appear extremely favorable for Asia over the coming years,” the
report said. “These economies are growing faster than any other region
in the world.”
Indonesia, home to the largest economy in
Southeast Asia with a population of around 240 million people, has been
benefiting from an increase in domestic spending that is helping to
boost average annual per capita income from last year’s $3,000 rate.
government forecasts the economy growing 6.7 percent in 2012, after an
estimated 6.5 percent this year. Gross domestic product rose 6.1 percent
in 2010 to $700 billion from a year before.
In Indonesia, just
0.02 percent of the adult population, or one of every 5,000 persons, is
estimated to be in the HNWI bracket, the report said. In China that
ratio is 0.05 percent, or one in 2,000 persons.
Indonesian wealth of HNWI was about $129 billion in 2010, and that could
rise to $487 billion by 2015, according to the report.
“Wealth levels are still very low but will see robust growth,” the report said.
average wealth level in Indonesia is $18,000, compared to $287,000 in
Hong Kong, which is the highest among the 10 places in the survey.
five years the rupiah could appreciate at close to 6 percent annually,
and in dollar terms, that means the Indonesian economy might grow at
23.5 percent per year, according to CLSA and Julius Baer.
In the year to Aug. 26, the rupiah has gained 5 percent against the dollar to 8,523.
will be boosted by expected robust returns on key assets,” the report
said. “We believe that Indonesian property values could rise 11 percent
per annum in local currency terms, while we project the stock market to
provide returns close to 15 percent per annum, matching earnings
Indonesia has 21 billionaires, according to Globe Asia, an affiliated publication of the Jakarta Globe.