Tandy Cahyadi, Head of Affluent Segment, Distribution & Wealth Solutions at Standard Chartered Indonesia, highlights three global headwinds that investors should monitor closely: rising trade tariffs disrupting global trade flows, declining immigration affecting workforce mobility, and weakening labor markets across advanced economies.

“Despite these issues, investors can still find ways to mitigate risks. It is possible to turn global challenges into opportunities, especially when it comes to asset allocation,” he said.

According to Tandy, wealth management continues to gain momentum across the Asia-Pacific region, including Indonesia, which remains one of the region’s most promising growth markets.

Globally, the number of ultrahigh-net-worth individuals (UHNWIs) grew 4.4 percent, led by North America (5.2 percent) and Asia (5 percent).

Citing The Wealth Report 2024 by Knight Frank, he noted that the number of Indonesia’s high-net-worth individuals (HNWIs), or those with wealth ranging from US$1 million to $30 million, was projected to rise 63 percent between 2024 and 2026.

Across the world, affluent individuals share similar goals: to preserve, grow and pass their wealth to future generations. Investment allocations can be spread across equities, property, private equity, bonds or cash.

“Not only is the world becoming more complex, but investments themselves are more complex. For Indonesia, this means a larger, more global, and increasingly sophisticated investor base, one that requires greater advisory depth and personalized wealth solutions,” Tandy explained.

He also emphasizes that Standard Chartered’s role goes beyond portfolio management: “We provide integrated advisory services covering risk management, cross-border diversification, sustainable strategies, and legacy planning, key pillars of effective wealth management,” he said.

“Good wealth management enables smoother wealth transfer across generations. With our global network, we can connect Indonesian clients to international opportunities, while our local expertise ensures that solutions are tailored to the domestic market context.”

To help clients seize emerging opportunities, Standard Chartered advises them to structure their portfolios into three categories: a foundation portfolio for long-term investments, a tactical asset allocation for mid-term adjustments, and an opportunistic allocation for short-term gains.

Tandy notes that a foundation portfolio requires discipline and a long-term mindset, built through diversification across asset classes, sectors and geographies, balancing risks and rewards while maintaining stability.

Meanwhile, the opportunistic allocation strategy allows investors to capture short-term gains arising from market volatility. “This way, customers can clearly identify whether they want to invest for short, medium, or long-term goals, and whether to do so locally or globally,” said Tandy.

Rapid growth of the HNWI population allows them to broaden networks, expand businesses and gain access to global deal flow.

Tandy stresses that Indonesian clients also need to diversify internationally, especially for individuals with cashflow needs in multiple countries and currencies.

“The first priority should, of course, be domestic asset development. But customers with business exposure abroad must also manage their foreign currency cash flows, whether in US dollars, pounds, yuan or other currencies. Standard Chartered is well-positioned to assist, given our presence in both consumer and corporate banking across major markets,” he said.

With operations in Singapore, the United Kingdom, the US, the United Arab Emirates and many other countries, Standard Chartered leverages its global network and local knowledge to help Indonesian customers grow their assets internationally.

Managing relations

At the same time, Tandy emphasized that while technology has significantly enhanced customer experience, affluent clients still value personal interaction and trusted advice. This underscores the central role of Relationship Managers (RMs), whose professional competence and certification remains a key focus for the bank.

“Relationship managers must be competent and certified so they can effectively communicate our wealth management programs to clients, aligned with the bank’s strategic concepts,” he said.

Instead of viewing wealth planning as a single step, relationship managers encourage clients to adopt the “Today, Tomorrow, and Forever” principle.

The “Today” stage focuses on managing cash flow to cover immediate needs such as education, property installments and household expenses, typically with the help of low-risk instruments.

“Tomorrow” looks ahead to mid-term goals and retirement planning, calling for a balanced mix of fixed income products and growth-oriented investments.

Finally, the “Forever” stage emphasizes the importance of preparing for wealth transfer and philanthropic goals, using inheritance structures that ensure a smooth transition across generations.

Tandy observes that in Indonesia, collaboration between the government and Bank Indonesia, such as stimulus disbursements through state-owned banks, also contributes positively to economic growth.

He adds that the current environment of a declining interest rate strengthens the case for bonds as part of a foundation portfolio, as these provide regular coupons and potential price appreciation.

“With the ‘Today, Tomorrow, and Forever’ principle, Standard Chartered ensure that customers can navigate a more complex investment landscape, preserve their wealth and safeguard their legacy for future generations,” he said.