Indonesia - 2012 Wealth Book
Asia's Emerging Giant

Indonesia - 2012 Wealth Book Asia's Emerging Giant

Synopsis

This report is the result of WealthInsight's extensive research covering the high net worth individual (HNWI) population and wealth management market in Indonesia.

Summary

Indonesia has the fastest growing wealth market in the world. This report reviews the performance and asset allocations of HNWIs and Ultra HNWIs in Indonesia and highlights top performing cities. It also includes an evaluation of the local wealth management industry.

Scope

The report features:

• Independent market sizing of Indonesian HNWIs across five wealth bands
• HNWI volume, wealth and allocation trends from 2007 to 2011
• HNWI volume, wealth and allocation forecasts to 2016
• HNWI and UHNWI asset allocations across 13 asset classes
• Number of UHNWIs in each city
• Fastest growing cities for UHNWIs
• Number of wealth managers in each city
• City wise ratings of wealth management saturation and potential
• Details of the development, challenges and opportunities of the Wealth Management and Private Banking sector in Indonesia
• Size of local wealth management industry
• Detailed wealth management and family office information
• Insights into the drivers of HNWI wealth

Reasons to Buy

• The WealthInsight Intelligence Center Database is an unparalleled resource and the leading resource of its kind. Compiled and curated by a team of expert research specialists, the database comprises up to one hundred data-points on over 100,000 HNWIs from around the world. It also includes profiles on major private banks, wealth managers and family offices in each country. With the database as the foundation for our research and analysis, we are able obtain an unsurpassed level of granularity, insight and authority on the HNWI and wealth management universe in each of the countries and regions we cover.
• Comprehensive forecasts to 2016.
• Detailed information on UHNWIs in each major city.

Key Highlights

• The total number of HNWIs in Indonesia increased by 67% during the review period (2007-2011). This was the highest growth for any major country in the world, well above the likes of China (41% growth) and India (32% growth).
• As of 2011, there were just over 37,400 HNWIs in Indonesia, with a combined wealth of US$241 billion.
• There are 626 UHNWIs in Indonesia. Jakarta is home to the largest portion of them (55% or 345 of UHNWIs). There are also sizable Indonesian UHNWI populations in Bali (35 UHNWIs), Surabaya (23 UHNWIs), Bandung (20 UHNWIs) and Medan (18 UHNWIs).
• WealthInsight's research shows that a large proportion of local wealth is currently held offshore, mostly in Singapore-based private banks. HNWIs remain invested in Singapore for reasons such as tax avoidance and risk diversification, but also due to higher product sophistication across the straits.

• 1 Introduction
  • 1.1 What is this Report About?
  • 1.2 Definitions
• 2 Executive Summary
• 3 Wealth Sector Fundamentals
  • 3.1 Political Background to the Wealth Sector
  • 3.2 Economic Background
  • 3.3 Benchmarking Indonesian Wealth in Context
    • 3.3.1 Distribution of wealth
    • 3.3.2 HNWI volume and wealth trends
• 4 Findings from the WealthInsight HNWI Database
  • 4.1 Trends in HNWI Wealth to 2016
    • 4.1.1 HNWI trend analysis
    • 4.1.2 Trends of the wealth bands
    • 4.1.3 Demographic breakdown of HNWI
  • 4.2 UHNWIs
    • 4.2.1 UHNWI volume trend analysis
    • 4.2.2 UHNWI wealth trend analysis
    • 4.2.3 Per capita UHNWI trend analysis
    • 4.2.4 Demographic breakdown of UHNWIs
    • 4.2.5 UHNWIs-job titles
    • 4.2.6 UHNWIs-industry breakdown
    • 4.2.7 UHNWIs-industry performance
    • 4.2.8 UHNWI breakdown by city
    • 4.2.9 UHNWIs-city performance
    • 4.2.10 UHNWIs-population densities
    • 4.2.11 UHNWIs-city forecasts
  • 4.3 UHNWIs-Billionaires
    • 4.3.1 Billionaire volume trend analysis
    • 4.3.2 Billionaire wealth trend analysis
    • 4.3.3 Billionaire per capita net worth trend analysis
    • 4.3.4 Billionaires by industry
    • 4.3.5 Billionaires by city
    • 4.3.6 List of billionaires
  • 4.4 UHNWIs-Centimillionaires
    • 4.4.1 Centimillionaire volume trend analysis
    • 4.4.2 Centimillionaire wealth trend analysis
    • 4.4.3 Centimillionaire per capita net worth trend analysis
  • 4.5 UHNWIs-Affluent Millionaires
    • 4.5.1 Affluent millionaire volume trend analysis
    • 4.5.2 Affluent millionaire wealth trend analysis
    • 4.5.3 Affluent millionaire per capita net worth trend analysis
  • 4.6 Core HNWIs
    • 4.6.1 Core HNWI volume trend analysis
    • 4.6.2 Core HNWI wealth trend analysis
  • 4.7 Core HNWIs-Mid-Tier Millionaires
    • 4.7.1 Mid-tier millionaire volume trend analysis
    • 4.7.2 Mid-tier millionaire wealth trend analysis
    • 4.7.3 Mid-tier millionaire per capita net worth trend analysis
  • 4.8 Core HNWIs-Lower-Tier Millionaires
    • 4.8.1 Lower-tier millionaire volume trend analysis
    • 4.8.2 Lower-tier millionaire wealth trend analysis
    • 4.8.3 Lower-tier millionaire per capita net worth trend analysis
• 5 Analysis of Indonesian HNWI investments
  • 5.1 Analysis by Asset Classes
    • 5.1.1 Changing trends in liquid assets (equity, fixed income and cash and deposits)
    • 5.1.2 Trends in Alternative Assets
    • 5.1.3 Trends in 'Art, Wine and Wheels'
    • 5.1.4 Trends of Investments in Real Estate
    • 5.1.5 Trends of Investments in Cash and Deposits
    • 5.1.6 Trends of investments in fixed income
    • 5.1.7 Trends of investments in equity
    • 5.1.8 Trends of investments in business interest
  • 5.2 Analysis of Foreign Investments
    • 5.2.1 Investments in the rest of the Asia-Pacific region
    • 5.2.2 Investments in Europe
    • 5.2.3 Investments in North America
    • 5.2.4 Investments in the Middle East
    • 5.2.5 Investments in Africa
    • 5.2.6 Investments in Latin America
  • 5.3 Analysis of Indonesian UHNWI Investments
• 6 Competitive Landscape of the Wealth Sector
  • 6.1 Competitive landscape
    • 6.1.1 Private banks
    • 6.1.2 Wealth Managers
    • 6.1.3 Family offices
    • 6.1.4 Financial Advisors
  • 6.2 Developments in Indonesia's Private Banking Industry
  • 6.3 Indonesian Wealth Management Industry-Clientele Model and Maturity
  • 6.4 Behavioral Mapping of Wealth Management and Private Banking Industry in Indonesia
  • 6.5 Porter's Five Force Analysis-Wealth Management Industry in Indonesia
  • 6.6 Financial Services Review
    • 6.6.1 Retail banks
    • 6.6.2 Fund Management
• 7 Appendix
  • 7.1 Regulatory Environment in Indonesia
    • 7.1.1 Banking regulations
    • 7.1.2 Regulations on Taxes
  • 7.2 Additional Country Background
  • 7.3 Key Economic Trends and Drivers
    • 7.3.1 LC to US$ exchange rate
    • 7.3.2 Real GDP growth
    • 7.3.3 Per capita GDP
    • 7.3.4 Domestic market capitalization
    • 7.3.5 Housing price index
    • 7.3.6 Commodity index
    • 7.3.7 Foreign direct investment
    • 7.3.8 Investments of FIIs in equity products
    • 7.3.9 Inflation rate
    • 7.3.10 Interest rate
    • 7.3.11 Balance of payments
    • 7.3.12 Government debt
    • 7.3.13 Stock market performance
  • 7.4 Wealth Breakdowns
• 8 About WealthInsight
• List of Tables
  • Table 1: HNWI Wealth Band and Group Definitions
  • Table 2: 10-Largest States in Indonesia by Population, 2010
  • Table 3: 10-Largest Cities in Indonesia, 2010
  • Table 4: Indonesia: HNWIs-Volume Distribution Wealth Pyramid, 2011
  • Table 5: Indonesia: HNWIs-Wealth Distribution Wealth Pyramid (% share), 2011
  • Table 6: Indonesia: UHNWIs-Top Cities, 2011
  • Table 7: Indonesia: UHNWIs-Smaller Cities, 2011
  • Table 8: Indonesia: UHNWI Population Density in Major Cities, 2011
  • Table 9: Indonesia: UHNWI in Top Cities, 2007-2016
  • Table 10: Indonesia: UHNWI Growth Rates for Top Cities, 2007-2016
  • Table 11: Indonesia: Billionaires-Market Overview (US$ Billions) 2007-2016
  • Table 12: Indonesia: Billionaires-Industry Breakdown, 2011
  • Table 13: Indonesia: Billionaires-City Breakdown, 2011
  • Table 14: Indonesia: Billionaire List (US$ Billions), 2011
  • Table 15: Indonesia: Billionaire Wealth Growth, 2007-2011
  • Table 16: Indonesia: Centimillionaires-Market Overview, 2007-2016
  • Table 17: Indonesia: Affluent Millionaires-Market Overview, 2007-2016
  • Table 18: Indonesia: Mid-Tier Millionaires-Market Overview, 2007-2016
  • Table 19: Indonesia: Lower-Tier Millionaires-Market Overview, 2007-2016
  • Table 20: Indonesia: HNWIs Holdings Growth (%), 2007-2016
  • Table 21: Indonesia: HNWIs-Liquid Asset Composition (%), 2007-2016
  • Table 22: Indonesia: HNWIs-Trends of Investments in Alternative Assets (%), 2007-2016
  • Table 23: Indonesia: HNWIs-Alternative Asset Composition (%), 2007-2016
  • Table 24: Indonesia: Trends in 'Art, Wine and Wheels', 2007-2011
  • Table 25: Indonesia: Prime Real Estate Performance by City, 2007-2011
  • Table 26: Indonesia: Prime Residential Indices by City
  • Table 27: HNWIs-Prime International Cities, 2007-2011
  • Table 28: Indonesia: Allocations of HNWI Assets, 2007-2016
  • Table 29: Indonesia: HNWIs-% Foreign allocation, 2007-2016
  • Table 30: Indonesia: UHNWIs-Allocations and Share of HNWI Assets, 2011
  • Table 31: Indonesia: Wealth Managers per City
  • Table 32: Indonesia: Financial Advisors in Indonesian Cities, 2011
  • Table 33: Indonesia: Wealth Management Industry-Recent Deal Activity
  • Table 35: Income Tax Structure in Indonesia
  • Table 36: Indonesia: LC to USD Exchange Rate, 2006-2016
  • Table 37: Indonesia: Real GDP Growth, 2006-2016
  • Table 38: Indonesia: GDP Per Capita, 2006-2016
  • Table 39: Indonesia: Domestic Market Capitalization (US$ Billions) 2006-2011
  • Table 40: Indonesia: Housing Price Index, 2006-2011
  • Table 41: Indonesia: Commodity Indices, 2006-2016
  • Table 42: Indonesia: Foreign Direct Investments (US$ Billions) 2006-2016
  • Table 43: Indonesia: Investments of FIIs in Equity Products (US$ Billion) 2006-2010
  • Table 44: Indonesia: Inflation Rate, 2006-2016
  • Table 45: Indonesia: Money Market Rate, 2006-2016
  • Table 46: Indonesia: Balance of Payments (US$ Billions) 2006-2011
  • Table 47: Indonesia: Government Debt to GDP, 2006-2016
  • Table 48: Indonesia: Stock Market Performance, 2006-2011
  • Table 49: Indonesia: HNWI Wealth vs GDP Ratio, 2007-2016
  • Table 50: Appendix One
  • Table 51: Appendix Two
• List of Figures
  • Figure 1: HNWI Wealth Band Definitions
  • Figure 2: Map of Indonesia
  • Figure 3: Indonesia: Asset Price Performance, 2007-2011
  • Figure 4: Indonesia: HNWI Performance (US$ Billion), 2007-2016
  • Figure 5: Indonesia: Indonesian HNWIs vs the World
  • Figure 6: Indonesia: HNWIs-Growth Factor Correlation, 2007-2011
  • Figure 7: Indonesia: HNWIs-Volume Distribution Wealth Pyramid, 2011
  • Figure 8: Indonesia: HNWIs-Wealth Distribution Wealth Pyramid (% share), 2011
  • Figure 9: Indonesia: HNWIs-Age Distribution, 2011
  • Figure 10: Indonesia: UHNWIs-Wealth Share vs Volume Growth, 2007-2011
  • Figure 11: Indonesia: UHNWIs-Volume by Wealth Band, 2007-2016
  • Figure 12: Indonesia: UHNWIs-Wealth by Wealth Band (US$ Billion), 2007-2016
  • Figure 13: Indonesia: UHNWIs-Age Distribution (% Share), 2011
  • Figure 14: Indonesia: UHNWIs-Job Titles, 2007-2011
  • Figure 15: Indonesia: UHNWIs-Distribution by Industry, 2011
  • Figure 16: Indonesia: UHNWIs-Sector Performance, 2007-2011
  • Figure 17: Indonesia: UHNWIs-City Performance, 2007-2011
  • Figure 18: Indonesia: UHNWIs-City Numbers, 2007-2011
  • Figure 19: Indonesia: UHNWIs-Regional Forecasts, 2011-2016
  • Figure 20: Indonesia: UHNWIs-City numbers, 2011-2016
  • Figure 21: Indonesia: Billionaires-Market Overview, 2007-2016
  • Figure 22: Indonesia: Centimillionaires-Market Overview, 2007-2016
  • Figure 23: Indonesia: Affluent Millionaires-Market Overview, 2007-2016
  • Figure 24: Indonesia: Mid-Tier Millionaires-Market Overview, 2007-2016
  • Figure 25: Indonesia: Lower-Tier Millionaires-Market Overview, 2007-2016
  • Figure 26: Indonesia: HNWIs-Asset Class Composition, 2007-2016
  • Figure 27: Indonesia: HNWIs-Total Liquid Assets (as a % of Total Assets), 2007-2016
  • Figure 28: Indonesia: HNWIs-Liquid Assets Composition (US$ Billion), 2007-2016
  • Figure 29: Indonesia: HNWIs-Trends in Alternative Assets (in US$ Billion), 2007-2016
  • Figure 30: Indonesia: Trends in 'Art, Wine and Wheels', 2007-2011
  • Figure 31: Indonesia: HNWIs-Foreign Investment Allocation and Growth (%), 2011-2016
  • Figure 32: Indonesia: HNWIs-Global Distribution of Foreign Investments, 2007-2016
  • Figure 33: Indonesia: UHNWIs-Asset Class Composition, 2007-2016
  • Figure 34: Indonesia: Wealth Management Industry-Maturity Level of Players
  • Figure 35: Indonesia: Wealth Management Industry-Behavioral Mapping, 2011
  • Figure 36: Wealth Management Industry-Five Forces Analysis
  • Figure 37: Indonesia: LC to USD Exchange Rate, 2006-2016
  • Figure 38: Indonesia: Real GDP Growth (%), 2006-2016
  • Figure 39: Indonesia: GDP Per Capita, 2006-2016
  • Figure 40: Indonesia: Domestic Market Capitalization (US$ Billion) 2006-2011
  • Figure 41: Indonesia: Housing Price Index, 2006-2011
  • Figure 42: Indonesia: Commodity Indices, 2006-2016
  • Figure 43: Indonesia: Foreign Direct Investments (US$ Billion) 2006-2016
  • Figure 44: Indonesia: Investments of FIIs in Equity Products (US$ Billion) 2006-2010
  • Figure 45: Indonesia: Inflation Rate, 2006-2016
  • Figure 46: Indonesia: Money Market Rate, 2006-2016
  • Figure 47: Indonesia: Balance of Payments (US$ Billion) 2006-2011
  • Figure 48: Indonesia: Government Debt to GDP, 2006-2016
  • Figure 49: Indonesia: Stock Market Performance, 2006-2011
  • Figure 50: Indonesia: HNWI Wealth vs GDP Ratio, 2007-2016
  • Figure 51: Indonesia: HNWIs-Volume by Wealth Band, 2007-2016
  • Figure 52: Indonesia: HNWIs-Wealth by Wealth Band (in US$ Billion), 2007-2016
  • Figure 53: Indonesia: HNWIs-Wealth per Capita (in US$ Billion), 2007-2016