Impressive growth

Personal wealth has risen very strongly in Indonesia, with average wealth increasing almost four-fold since the year 2000. The recovery from the Asian financial crisis of 1997–98 was impressive. In USD terms, the global financial crisis of 2007-08 caused a small setback, but growth rebounded and wealth per adult is now well above the pre-crisis level in domestic currency and in USD, despite an exchange rate depreciation of 18% in the 12 months to mid-2014.

A comparison of Indonesia and India is interesting. In 2000, wealth per adult in both countries was fairly similar, with Indonesia just 23% ahead of India. However, the figure for Indonesia is now more than double that for India. This is in line with the faster pace of growth in Indonesia’s GDP, which grew at an average annual rate of 12.7% between 2000 and 2014 compared with 9.3% for India. The composition of wealth appears to be similar, with real assets making up 85-86% of gross assets in both countries, according to our estimates. Personal debt in the two countries is low, averaging just 6% of gross assets in India and 5% in Indonesia.

In Indonesia, 88% of the population has less than USD 10,000, which is greater than the global figure of 70%. At higher wealth levels, there are progressively fewer people than there are for the world as a whole. This reflects the fact that while wealth has risen strongly in Indonesia in recent years, it is still low by international standards. However, due to considerable dispersion in wealth distribution, 128,000 people in the country are in the top 1% of global wealth holders, and 98,000 are US dollar millionaires.


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