Demand Up For Wealth Management In Indonesia, Says OCBC

Interest driven by growing middle-class population with higher disposable income

- Sheila Chiang

JAKARTA - OCBC, Singapore's second-largest bank by assets, said that demand for wealth management services is rising in Indonesia, driven by wealthier folks and increased awareness about financial planning.

OCBC Indonesia director Johannes Husin said a growing middle-class population with increased disposable income and seeking professional guidance for wealth management is driving the demand.

There is also increased awareness among Indonesians about financial planning and investment diversification, while the younger generation's preference for digital solutions also leads to the emergence of online wealth management platforms, he said.

"In the past few years, we have seen that deposit funding, assets under management, with regard to investments in the Indonesian market, have grown significantly. It is proof that the efforts by the Indonesian regulators to deepen the financial market are working effectively."

Speaking to The Straits Times at Fairmont Hotel in Senayan business district, Mr Husin said the "new riches" in Indonesia rose sharply in the past few years.

This was accelerated by the Covid-19 pandemic, where a lot of money was saved up, he said.