The Reality of Indonesia’s Wealthy Class (Lifestyle, Income, Population, and Values)
- Publish
- 2022/08/25
- Update
- 2025/08/16
- You can read this article in 6minutes
- Number and Proportion of High-Net-Worth and Ultra-High-Net-Worth Individuals in Indonesia
- Growth Rate of High-Net-Worth Individuals in Indonesia
- Characteristics of Indonesia’s Wealthy Class
- The Values of Indonesia’s Wealthy Class
- In Indonesia, the Wealthiest 1% Own 46.6% of National Wealth
- The Expanding Wealthy Class in Indonesia and the Rise of Luxury-Oriented Businesses
Indonesia, which continues to experience remarkable economic growth, has seen a sharp increase in its wealthy population. While the absolute number of wealthy individuals remains significantly lower than in Japan, the growth rate of high-net-worth and ultra-high-net-worth individuals in Indonesia far exceeds that of Japan. For example, between 2016 and 2021, the number of wealthy individuals in Japan increased by 10%, whereas in Indonesia, it rose by 50%.
Indonesia does not impose an inheritance tax, allowing the wealthy to accumulate even greater wealth. As a result, the richest 1% of the population holds 46.6% of the nation’s total wealth, undeniably contributing to a widening economic disparity.
In the following sections, we will examine the specific realities of Indonesia’s high-net-worth and ultra-high-net-worth individuals.
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Number and Proportion of High-Net-Worth and Ultra-High-Net-Worth Individuals in Indonesia
According to a 2022 research report by Knight Frank, a London-based consulting firm, the number of high-net-worth and ultra-high-net-worth individuals in Indonesia and Japan is shown in the table below.
In this report, the definitions are as follows:
- High-Net-Worth Individuals (HNWIs): Individuals with assets equivalent to USD 1 million or more (approx. JPY 140 million)
- Ultra-High-Net-Worth Individuals (UHNWIs): Individuals with assets equivalent to USD 30 million or more (approx. JPY 4.06 billion)
Number of High-Net-Worth Individuals / Percentage of Total Population
| Year | Japan | Indonesia |
|---|---|---|
| 2016 | 3,577,670 people / approx. 2.9% | 54,719 people / approx. 0.02% |
| 2021 | 3,944,073 people / approx. 3.2% | 82,012 people / approx. 0.03% |
| 2026 (est.) | 4,651,963 people / approx. 3.8% | 134,015 people / approx. 0.05% |
Number of Ultra-High-Net-Worth Individuals / Percentage of Total Population
| Year | Japan | Indonesia |
|---|---|---|
| 2016 | 25,075 people / approx. 0.02% | 832 people / approx. 0.0003% |
| 2021 | 31,516 people / approx. 0.03% | 1,403 people / approx. 0.0005% |
| 2026 (est.) | 32,322 people / approx. 0.03% | 1,810 people / approx. 0.0007% |
As of 2021, the United States has the largest number of both high-net-worth and ultra-high-net-worth individuals globally, followed by China and then Japan. In comparison, Indonesia has only 1/48th the number of HNWIs and 1/22nd the number of UHNWIs as Japan. The percentage of these wealthy individuals in the total population also differs by an order of magnitude.
Sources:
- Knight Frank “THE WEALTH REPORT 2022”
- KOMPAS.com “Dalam Lima Tahun, Jumlah Orang Kaya Indonesia Melonjak 63 Persen”
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Growth Rate of High-Net-Worth Individuals in Indonesia
According to the same report by Knight Frank, the growth rates of high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) in Japan and Indonesia are shown in the following tables.
Growth Rate of HNWIs
| Period | Japan | Indonesia |
|---|---|---|
| 2016 – 2021 | 10% | 50% |
| 2021 – 2026 (est.) | 18% | 63% |
Growth Rate of UHNWIs
| Period | Japan | Indonesia |
|---|---|---|
| 2016 – 2021 | 26% | 69% |
| 2021 – 2026 (est.) | 3% | 29% |
For example, the projected five-year growth rate of HNWIs in Indonesia from 2021 to 2026 is 63%, compared to the global average of 52.3%, indicating a forecast of rapid expansion. The UHNWI growth rate in Indonesia is also expected to slightly exceed the global average of 28.4%.
Across Southeast Asia, Indonesia’s projected HNWI growth rate of 63% over the next five years ranks third, following Malaysia at 86% and the Philippines at 79%. While Japan is also seeing growth, it is not comparable to that of Indonesia.
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Characteristics of Indonesia’s Wealthy Class
Many of Indonesia’s Wealthy Are Chinese-Indonesian Conglomerate Owners
What are the defining characteristics of Indonesia’s wealthy class? According to the 2022 “Top 10 Richest People in Indonesia” ranking by Forbes, several key trends emerge.
Six out of the ten individuals inherited and expanded the companies founded by their parents. These business owners often manage their enterprises as family-run businesses, particularly with siblings.
Eight of the ten individuals, excluding Sri Prakash Lohia (originally from India) and Chairul Tanjung (a Padang native from Jakarta), are ethnic Chinese Indonesians.
Although Chinese Indonesians make up only about 3% of the total population, they hold significant economic power. Most of Indonesia’s major conglomerates were founded by individuals of Chinese descent. Even outside of large conglomerates, ethnic Chinese individuals are often prominent business owners and executives.
In urban areas, particularly in upscale shopping malls and fine dining restaurants, one can easily notice the higher concentration of East Asian-looking individuals compared to other public places.
The Top 10 Richest People in Indonesia (2022)
- Robert Budi Hartono and Michael Bambang Hartono
Estimated Net Worth: USD 19.7 billion
They manage Djarum, Indonesia’s fourth-largest tobacco company, and are major shareholders of Bank Central Asia. They also operate Blibli.com and Kaskus. - The Widjaja Family
Estimated Net Worth: USD 9.7 billion
Founders of Sinar Mas Group. Four sons now run the business. - Anthoni Salim
Estimated Net Worth: USD 8.5 billion
CEO of Salim Group and Chairman of First Pacific. Major investor in Indofood Agri Resources. - Sri Prakash Lohia
Estimated Net Worth: USD 6.2 billion
Founder of Indorama and other major businesses. Indian-born, relocated to Indonesia in 1973. - Prajogo Pangestu
Estimated Net Worth: USD 6.1 billion
Founder of Barito Pacific, Indonesia’s largest petrochemical group. - Chairul Tanjung
Estimated Net Worth: USD 5.5 billion
Founder of CT Corp, which owns businesses in finance, telecom, and retail. Former cabinet minister. - Susilo Wonowidjojo
Estimated Net Worth: USD 4.8 billion
CEO of Gudang Garam and founder of Makindo Group. - Boenjamin Setiawan
Estimated Net Worth: USD 4.2 billion
Co-founder of Kalbe Farma, Indonesia’s largest pharmaceutical firm. - Jogi Hendra Atmadja
Estimated Net Worth: USD 4.1 billion
Founder of Mayora Group, known for Kopiko and Roma biscuits. - Bachtiar Karim
Estimated Net Worth: USD 3.5 billion
CEO of Musim Mas, one of the world’s largest palm oil companies.
Prominent Young Entrepreneurs in Indonesia
As previously noted, many of Indonesia’s wealthy are second-generation business owners. However, more and more young entrepreneurs are achieving success with their own ventures.
- Nadiem Makarim (b. 1984) – Founder of Gojek. Net worth: USD 83 million. Appointed Minister of Education and Culture in 2019.
- Achmad Zaky (b. 1986) – Co-founder of Bukalapak. Net worth: USD 250 million. Honored by President Joko Widodo in 2016.
- Raffi Ahmad (b. 1987) – Founder of RANS Entertainment. Estimated net worth: USD 67 million. Prominent entertainer and media entrepreneur.
Indonesia Has No Inheritance Tax
Indonesia imposes no inheritance tax. Inherited real estate and personal assets are exempt from income tax, allowing wealth to pass efficiently from one generation to the next. This dynamic limits upward mobility for younger entrepreneurs.
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We set up a domestic capital company in Indonesia using the name of a former employee from Japan’s Specified Skilled Worker program. At first, communication was smooth, but once the business became profitable, they claimed ownership, seized bank accounts and contracts, and disrupted client relations. A contract was in place but ineffective, leaving us to regret relying solely on trust.
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We hired a local consulting firm to set up our foreign-owned company in Indonesia, but responses were slow and explanations kept changing. Repeated requests for extra documents and shifting requirements disrupted our schedule, and the process took nearly a year, delaying our business launch. We learned the importance of clearly defining project management and responsibilities in the contract.
The Values of Indonesia’s Wealthy Class
Indonesian high-net-worth individuals are highly committed to philanthropic activities.
Based on a survey by Visa (2012–2013), which targeted affluent credit card holders aged 18 to 55, Indonesia’s wealthy show strong values in two areas:
- Philanthropy: Ranked first in desire to increase spending on charitable giving.
- Family Travel: Prioritize family vacations over luxury items.
Only Indonesia and the UAE ranked philanthropy as the top spending priority. The Hartono brothers exemplify this through the Djarum Foundation, which supports scholarships, environmental programs, healthcare, and disaster response.
Indonesia’s Wealthy Favor Family Travel
Europe is a top destination, with favorites including France, Italy, Finland (for winter holidays), the Maldives, and Japan during cherry blossom season. Given that the average monthly income in Jakarta is approximately USD 310, overseas travel remains an aspirational luxury for most Indonesians.
What Indonesia’s Wealthy Desire
Compared to global counterparts, Indonesia’s wealthy are more inclined to spend on physical goods. Only 60% identify as frugal, versus 75% globally. They show high interest in jewelry and cars, with a belief that income will continue to grow.
Gojek founder Nadiem Makarim, for example, owns two vehicles worth approximately JPY 10 million each—well above the national average of JPY 3 million per car.
What Indonesia’s Wealthy Prioritize for the Future
- Quality Education for Children: 97% in Indonesia vs. 74% in Japan. International schools are a key preference, with monthly tuition ranging from JPY 50,000 to 300,000.
- Real Estate Investment: 86% in Indonesia vs. 34% in Japan. Property ownership is seen as a stable and appreciating asset.
What Life Means to Indonesia’s Wealthy
92% associate wealth with responsibility, and 81% with the ability to help others—both above global averages. Moreover, 92% believe “the meaning of life is to help others,” compared to 41% in Japan. Enjoying life to the fullest, especially with family, is a deeply held cultural value.
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In Indonesia, the Wealthiest 1% Own 46.6% of National Wealth
According to Credit Suisse (2018), the top 1% of Indonesians hold 46.6% of adult wealth. The top 10% control 75.3%. This stark inequality has prompted government efforts to reduce the wealth gap and support the underprivileged.
Source: databoks “1% Orang Terkaya Indonesia Menguasai 46% Kekayaan Penduduk”
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The Expanding Wealthy Class in Indonesia and the Rise of Luxury-Oriented Businesses
Although fewer in number than Japan’s, Indonesia’s wealthy individuals possess competitive financial power. They are passionate about philanthropy and family, and show strong consumer intent in luxury segments.
As this segment continues to grow, so will demand for luxury services such as lifestyle concierge firms, premium travel agencies, and upscale gyms. Businesses targeting this demographic are expected to thrive.
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How many wealthy individuals are there in Indonesia, and what percentage of the population do they represent?
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As of 2021, there were 82,012 high-net-worth individuals in Indonesia (approximately 0.03% of the population) and 1,403 ultra-high-net-worth individuals (approximately 0.0005%).
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What is the growth rate of wealthy individuals in Indonesia?
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Between 2016 and 2021, the number of high-net-worth individuals in Indonesia increased by 50%, while the number of ultra-high-net-worth individuals grew by 69%.
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What are the characteristics of wealthy individuals in Indonesia?
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Many of Indonesia's wealthy individuals are of Chinese descent, and most conglomerate business leaders are also Chinese-Indonesians. Common traits among Indonesia’s wealthy include a strong commitment to philanthropy, valuing family time, and actively purchasing jewelry, cars, and real estate.
