Indonesia - Great Opportunity Lies Ahead for Wealth Management
Nov 29, 2019
We were delighted to host our 9th annual Indonesian Wealth Management Forum on October 17 in Jakarta.
More than 200 CEOs, COOs, Independent Asset managers and other senior practitioners attended – from a mix of local and international Private Banks, Retail Banks, Insurance Companies, Independent Firms & Family Offices, Asset Management Companies, and IFAs.
Indonesia continues to present an enticing opportunity in wealth management for domestic and foreign players alike.
For years there have been discussions about opening up international investments to Indonesia for distribution onshore, but so far there has been little to no progress. While there is modest liberalisation for insurers who can now get 20% of invested assets in overseas assets, the asset management industry remains seriously hampered.
High-quality relationship managers can easily move to Singapore to ply their trade. To build and retain a skilled, professional talent pool of bankers and advisers locally, the regulators must help diversify the product range and industry must address education, training and compensation.
The wealth management industry must develop its proposition and communication methodologies to gain maximum traction with the second and third generations of wealth in the country, especially as these individuals are worldly and well educated from Western colleges and as some 70% of HNWI's private wealth remains onshore, and that percentage is likely to rise.
The offshore proposition is also challenged, for example in nearby Singapore, by fast-rising costs and rapidly proliferating regulation, both of which lead to margin compression. Developing the onshore product and service suites is therefore increasingly important.
We discovered that great opportunity lies ahead for wealth management in Indonesia - but the regulators need to liberalise - and soon - and the industry must develop both its talent and its onshore proposition.
Finally, thank you to all of our event partners: Henley & Partners, Comarch, Swissquote, Wealth Dynamix, 360F, Additiv, Bordier & Cie, DWS, Intellect Design Arena, Wealth Intelligence - Contemi Solutions, Sun Life Financial, Bunker Gold & Silver, Expersoft Systems, FNZ, Hawksford, IMTF, J O Hambro Capital Management, J. Rotbart & Co., Malca Amit, Onchain Custodian, Singlife and Sovereign Group.