Indonesia Wealth Management - High Net Worth (HNW) Investors 2022

Indonesia Wealth Management - High Net Worth (HNW) Investors 2022

Summary

GlobalData’s 'Indonesia Wealth Management - High Net Worth (HNW) Investors 2022' analyzes the investing preferences and portfolio allocation of Indonesia's HNW individuals. It profiles HNW investors in terms of their demographics, examines the allocation of HNW investors’ portfolios, analyzes their propensity to invest offshore, and explores their product and service demand. The report is based on our proprietary Global Wealth Managers Survey.

The Indonesian HNW market is dominated by older males, while female HNWs present significant growth opportunities. HNW clients mainly source their wealth through earned income and entrepreneurship, while inheritance is forecast to rise given the older age of the HNW cohort. Furthermore, reflecting the sizable percentage of expats in the country, wealth managers cannot afford to ignore this lucrative segment. In a highly competitive market such as this, offering a multi-service proposition is a must as demand is expected to increase across all mandates and planning services. A burgeoning appetite for digitized and automated solutions such as robo-advice and a growing demand for ESG and alternative investments provide arguably the most significant growth opportunities for global wealth managers in the foreseeable future.

Scope

• Expats constitute 23.3% of the local HNW population. They represent an attractive target market thanks to their more complex service requirements.
• Robo-advice accounts for 16.6% of the Indonesian HNW portfolio. The market for robo-advisory services is growing rapidly in the HNW space in Indonesia.
• Cash and near cash investments, property and bonds dominate the Indonesian HNW asset portfolio.
• The average Indonesian HNW investor offshores 44.0% of their wealth abroad. While this proportion is expected to increase over the next 12 months, the rise is expected to be less pronounced than in the wider region, indicating that many HNW investors are confident about the country’s economic recovery.

• Develop and enhance your client targeting strategies using our data on HNW profiles and sources of wealth.
• Enhance your marketing strategies and capture new clients using insights from our data on HNW investors’ asset management style preferences.
• Tailor your investment product portfolio to match the current and future demand for different asset classes among HNW individuals.
• Develop your service proposition to match the demand expressed by Indonesian HNW investors and react proactively to forecast changes in demand.