Indonesia’s wealthy population grows by 20%

Indonesia’s wealthy population surged by almost a fifth year-on-year in August, a rate three times the projected economic growth. According to data from the Deposit Insurance Corporation (LPS), bank accounts with more than Rp 1 billion ($113,000) in deposits in the country increased by 19.5 percent in August from the same period a year earlier.

There were a total of 266,050 such accounts with US$ 1.424.300 million at Indonesia’s 120 commercial lenders in August, compared with 222,600 accounts valued at US$ 1.182.9 million in August 2010.

According to the Certified Wealth Management Association, a wealthy individual is defined as a bank customer who has at least US$ 100.000 in savings. Jahja Setiaatmadja, the president director of Bank Central Asia, said the number of wealthy should continue to grow in line with the country’s improving GDP per capita.

The government expects the economy to grow 6.5 percent this year after expanding 6.1 percent in 2010. “In terms of lifestyle nothing has changed, but these people are becoming more critical and hesitant in their investment decisions” said Maikel Sajangbati of MaeSa.

adapted from The Jakarta Globe