The number of “Crazy Rich Indonesians” is predicted to surpass the number of billionaires in China in the next five years.
The wealth increase is thanks to the launch of the COVID-19 vaccine accompanied by economic recovery.
This prediction has been made by London-based property company Knight Frank’s forthcoming Wealth Report 2021. The company shows that the annual increase in wealthy Indonesian people will increase by 67 percent in the next five years.
“The number of people with ultra-high individual value, namely those with a wealth of US$30 million and above, or Rp427 billion, is expected to increase 67.2 percent in the next five years,” explained Head of Residential Unit for Asia-Pacific at Knight Frank, Victoria Garrett.
Indonesia’s 67 percent increase would be the sharpest in Asia and even the world.
“Indonesia has always been a sleeping economic giant in Asia with its large young population and rapidly expanding middle class. Coupled with its large domestic consumption base and emerging tech unicorns, like Gojek, there are plenty of opportunities for wealth creation within the country,” she said.
This figure is even higher than China, which is predicted to only grow by around 46.3 percent. However, from the number of individuals, China’s billionaires are estimated to number 103,000, while Indonesia is only around 1,000.
“There is no detailed information on which sectors these individuals appear, but what we can say is that in the long term, the Indonesian economy will grow rapidly due to the large, youthful population and the rapidly increasing middle class,” said Victoria.
Countries with large and growing markets like Indonesia and China have made Asia a centre for wealth generation.
“Over the past decade, the region has developed and deepened its technological capabilities and infrastructure rapidly, accounting for a large share of global growth in technology company revenue,” Victoria concluded.
Photo credits Otodriver.com
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