Wealthy Indonesians Boost Bank Deposits Amid Limited Investment Options

Significant Growth in High-Value Deposits

High-net-worth individuals in Indonesia have been increasingly placing their funds in local banks, as evidenced by the substantial growth in deposits exceeding Rp 5 billion. By September 2025, these deposits reached Rp 5,462 trillion, marking a significant 36% increase over the past three years. This growth rate is the highest among all deposit categories, indicating a strong trend of wealth concentration in bank deposits.

Historical Context and Growth Trajectory

The growth in high-value deposits is particularly noteworthy when viewed historically. In 2016, following the implementation of the tax amnesty program, deposits above Rp 5 billion stood at approximately Rp 2.228 trillion. The more than doubling of these deposits over nearly a decade underscores the increasing confidence of wealthy individuals in Indonesia's financial system.

Rise of Ultra High Net Worth Individuals

The trend is further corroborated by data on ultra high net worth individuals (UHNWI). According to Knight Frank's data, the number of UHNWI in Indonesia has shown a steady increase, growing from 832 individuals in 2016 to 1,479 in 2023. Projections indicate that this number is expected to rise to 1,984 by 2028, representing a compound annual growth rate that signifies robust expansion in Indonesia's high-net-worth population.

Implications for Financial Markets

While the increase in bank deposits among high-net-worth individuals indicates growing trust in Indonesia's banking system, it also highlights the limited availability of diverse investment instruments in the country. The preference for bank deposits over other investment vehicles suggests that wealthy individuals may be constrained by the current investment landscape in Indonesia.

Conclusion

The significant growth in high-value bank deposits and the rising number of UHNWI underscore the need for more sophisticated and diverse financial products in Indonesia. As the country's wealthy population continues to grow, the development of a broader range of investment options will be crucial in channeling these funds into productive sectors of the economy.