Indonesia will see the emergence of more millionaires over the next five years in response to the growth of its middle class, but wealth disparity will remain a large problem in Southeast Asia's largest economy, a 2015 wealth report has said.
The sixth annual Credit Suisse Research Institute Global Wealth Report reported that Indonesia had made an impressive recovery from the 1998 Asian financial crisis. The report said that Indonesia's middle class wealth grew nearly 250 percent between 2000 and 2015, measuring US$351 billion and representing 24 percent of the country's wealth.
"At the top of the wealth pyramid, the number of dollar millionaires in Indonesia is projected to rise by 54 percent over the next five years to reach 151,000 in 2020," the report, sent to thejakartapost.com, outlined recently.
Of the 136,000 rich people living in Indonesia, 98,000 are millionaires and 987 are ultra-rich individuals with a net worth of more than $50 million. This figure represents an 8.9 percent increase from last year.
The report said that personal wealth in Indonesia is largely made up of real assets, representing 86 percent of gross household assets. Indonesia's personal debts are also low, at an average 6 percent.
Credit Suisse reported that 92 percent of the 162-million adult population owned less than $10,000, a percentage decidedly larger than global figure of 71 percent.
"This reflects the fact that average wealth in Indonesia remains low by international standards," the report stated. (rin)