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Jakarta Post

Indonesia’s ultra rich to increase in number by 57% by 2024

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, March 16, 2020   /   02:59 pm
Indonesia’s ultra rich to increase in number by 57% by 2024 The growth of the country’s ultra-high-net-worth individuals (UHNWIs), or those with a net worth of more than US$30 million, is projected to be the fifth-highest in the world. (Shutterstock/David Franklin)

The number of Indonesia’s ultra rich is expected to jump by 57 percent to 1,060 individuals over the next four years, the second highest increase in Southeast Asia, according to a recent report.

The growth of the country’s ultra-high-net-worth individuals (UHNWIs), or those with a net worth of more than US$30 million, is projected to be the fifth-highest in the world, substantially higher than the global and Asia averages of 27 percent and 44 percent, respectively, according to the Wealth Report 2020 by property consulting company Knight Frank.

“In Southeast Asia, Indonesia has the second-highest rate of UHNWI growth below Vietnam,” said Knight Frank’s Asia Pacific associate director Justin Eng during the report’s launch in Jakarta on Friday.

“The growth is fuelled by the burgeoning middle class and strong GDP [gross domestic product] growth of above 5 percent,” he added.

Read also: Indonesia gets richer but inequality remains wide

Indonesia’s economy grew 5.02 percent last year, lower than 2018’s achievement of 5.17 percent, as exports and investment cooled.

Last year, Forbes Indonesia released its list of Indonesia’s 50 richest individuals, with an increase of US$5.6 billion in their combined wealth to a record $134.6 billion, around 12 percent of the country’s GDP, despite the economic slowdown.

The Knight Frank report also highlighted that around 41 percent of the global ultra rich intended to diversify their assets because of economic uncertainty.  

Around 70 percent of wealth managers in Asia are actively adjusting their clients’ portfolios in response to the global economic slowdown and uncertainties, with around 28 percent of investment portfolios allocated to the property sector, 21 percent in equities and 19 percent in bonds.

“The general UHNWI individual is selling their risky assets to buy safer and less risky assets. Everyone is a bit on the edge and is deciding to diversify their investments,” Justin said. (mpr)