Wealthy Indonesians Shift Funds to Local Banks

Significant Growth in High-Value Deposits

A notable trend has emerged among wealthy Indonesians who are increasingly choosing to keep their funds in local banks rather than abroad. According to data from the Indonesian Deposit Insurance Corporation (LPS), deposits exceeding Rp 5 billion have reached Rp 5,462 trillion as of September 2025. This represents a substantial 36% increase over the past three years, marking this bracket as the one with the highest growth rate.

Historical Context and Growth Trajectory

To put this growth into perspective, in 2016, the total value of deposits above Rp 5 billion stood at approximately Rp 2.228 trillion. The significant increase since then coincides with major financial events in Indonesia, such as the implementation of the tax amnesty program. This policy likely played a role in encouraging wealthy individuals to repatriate their funds and place them in domestic financial institutions.

Implications for Indonesia's Financial Landscape

This shift towards domestic banking indicates growing confidence among high-net-worth individuals in Indonesia's financial stability and regulatory environment. The trend also suggests that previous concerns about capital flight may be diminishing, with more wealth being retained within the country's financial system.

Future Outlook

As Indonesia continues to develop its financial infrastructure and implement investor-friendly policies, this trend is likely to continue. The increasing confidence among wealthy Indonesians in domestic financial institutions could have positive implications for the country's economic stability and growth.