Experts Survey the Markets & Opportunities for Indonesia’s Private Clients
May 3, 2023
How can you curate the right types of investment portfolios for 2023 and beyond after the challenges of 2022? The Hubbis Indonesian Wealth Management Forum in Jakarta on March 29 included a panel discussion on the investment opportunities and ideas for the local HNW and UHNW clients as they seek to future focus their portfolios. This is a brief summary of some of their insights & observations.
Panel
Chair
Benjamin Twoon
Co-founder and Chief Commercial Officer
Alta
Panel Members
Alain Tandi
Head, Bancassurance & Investment Management - Indonesia
Maybank
Guntur Putra
President Director, CEO
Pinnacle Investments
Radek Jezbera
CEO and Co-Founder
Kilde
Investors need to understand what they are buying and wealth managers need to promote suitable and relevant opportunities
A guest first observed that regulations are driving the market more towards needs, relevance and suitability. Wealth management providers should keep products as simple as possible and make sure their customers understand what they are buying into. The more sophisticated product should be left to the qualified private clients and institutional investors.
“We all need to understand the clients and their aims, to understand their risk profile and tolerance, and then tailor ideas that are entirely suitable and relevant for them,” said one panellist.
The need for more products and more international assets
An expert highlighted Indonesia’s relative lack of product diversity and lamented the lack of access to international products, other than through onshore feeder or other funds. “We see a lot of demand from HNWIs and UHNW clients and family offices for custom solutions to invest offshore,” he reported.
Another guest agreed, adding that Indonesian investors really suffer from the lack of access to global products or offshore products, especially with the domestic Rupiah depreciation against the US Dollars over the last 15 or so years, and as the domestic Jakarta Composite Index has barely moved – even though relatively to the region it had a good 2022 - while the S&P 500 had advanced rapidly in the last five years, even taking into account the 2022 slump.
ETFs can only be sold through brokerages not through the banks, but there is rising demand as vehicles to easily capture certain markets and trends and also as low-cost entry points.
There is rising interest in fixed income and a positive momentum given the country’s macro fundamentals, the positive trade surplus, muted inflation, and a stable currency, leading to rising interest also in equities, where current valuations at around 14 times are attractive on a regional comparable basis
Co-founder and Chief Commercial Officer at Alta
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