Indonesia’s economy grew a healthy 5.1% and most market experts maintain optimism for 2015 as a collapse in global crude oil prices has helped lighten cumbersome fuel subsidies. However, there are still some difficulties facing the archipelagic nation’s wealthy. Sliding commodity prices of coal and palm oil, and a weakening rupiah, impaired the growth of Indonesia’s high net worth individual (HNWI) population of 40,500, testing the ability of the country’s private banks to deliver security and growth for their clients’ assets. Nonetheless, the US$230 billion private wealth market continues to be one of the most highly-coveted private banking regions in Asia.
Credit Suisse’s deep-rooted commitment to Indonesia maintains its momentum as assets under management grew at 14% CAGR over the last four years. Led by one of the industry leaders in Indonesian private banking, Johanes Oeni, Market Group Head Indonesia, Private Banking Asia Pacific, the business continues to leverage its integrated banking approach. In particular, the Swiss giant continues to generate cross-divisional success with its investment bank, creating value for Indonesian ultra-high net worth individuals and mid-sized business owners.
A testament to Credit Suisse’s dominance in the region is the impressive fact that the private bank services nearly all of Indonesia’s 50 wealthiest billionaires. Its success extends beyond business performance and clients alone. In an industry where explicitly complimenting a competitor in public is rare – Credit Suisse’s peers have done just that. In a conversation with this publication several months ago, another leading Indonesian private banker named Oeni and his team “a benchmark to measure against” when competing in the space, highlighting Oeni’s business, in collaborating with the investment bank, as “a noticeable edge”.
The road ahead promises even greater wealth growth from more diversified sources and sectors. The euphoria in Southeast Asia’s largest economy, following the election of Joko Widodo, has sparked hopes of greater economic prosperity driven by development in infrastructure, and health and education facilities. For the fourth consecutive year, Credit Suisse has proven it is best positioned to take advantage of this growth in wealth, as it wins Asian Private Banker’s award for Best Private Bank – Indonesia in 2014.