Indonesian wealth management AUM growth exceeds 20%

Despite Indonesia’s 2023 5.05% economic growth slowing down slightly from 2022’s 5.31%, Indonesia’s private banks and wealth managers saw a 22% growth in their total AUM to US$62 billion.

In APB Insights’ 2023 Indonesia Private Banking & Wealth Management AUM League Tables, almost all private banks saw growth in AUM, similar to last year.

Indonesian banks pointed to factors such as digitalising and streamlining systems, expanding client bases and developing new investment services and products.

Banks that led this growth trend include Bank Central Asia and Bank Rakyat, which saw AUM increases of 63% to US$13 billion and 20% to US$12 billion, respectively. OCBC NISP Private Banking’s AUM more than doubled to US$4 billion following its acquisition of PT Bank Commonwealth.

Client acquisition

Players such as Bank Negara Indonesia have been accelerating customer acquisition by targeting new demographics, such as business owners and professionals. Bank Tabungan Negara is developing a new priority segment to cater to mega-wealthy clients, and a preferred segment to capture the emerging affluent population.

Other than widening the breadth of its clients, private banks are also deepening their relationships with existing clients through improving customer experience and providing more holistic services.

New collaborations, new products

While sophisticated products are not common in Indonesia, banks have been forming alliances with financial institutions to create new products and services.

For instance, Bank Mega collaborated with the Indonesian Ministry of Finance and was appointed as a distribution partner for seven series of government bonds in the primary market. It is also working with investment managers to make mutual fund products available to private banking customers for asset diversification purposes.

While most banks created external alliances, Mandiri Private collaborated with internal divisions within Bank Mandiri and its subsidiaries to strengthen its offerings.

Digitalisation

Banks have been digitising and streamlining their systems from the front end to the back end. To simplify transactions, banks such as Bank Central Asia and Mandiri Private have been offering wealth products via their apps and allowing private banking clients to make mutual funds and primary bond transactions on their phones. To boost productivity, Bank Rakyat plans to implement robo-advisors for its wealth planning services.

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More	Rank			Bank Name	Bank type	2023 AUM (USD B)	2022 AUM (USD B)	YoY % Change	Min Asset Threshold (USD)
				Mandiri Private	Private banking	17.93	16.72	7.24%	1.4M
	In 2023, while Bank Mandiri’s private banking AUM maintained a growth of 7%, the growth rate dropped from 2022’s double-digit growth of 12%. The bank enhanced the digital capabilities of its front-end system, allowing wealth customers to make mutual funds and primary bonds transactions on their phones, as well as expanded its wealth management team and boosted relationship management productivity, with its bankers managing about 10% of the wealth population in Indonesia. Mandiri Private has been collaborating with other internal divisions within Bank Mandiri and other subsidiaries, including Mandiri Sekuritas and Mandiri Manajemen Investasi. *Note: AUM: APB estimate Darmawan Junaidi president director, Mandiri Bank
				Bank Central Asia	Wealth management	12.96	7.95	63.02%	33K
	In 2023, the bank delivered AUM growth of 63%. In 2022, AUM grew 58%, displaying high double-digit growth for two consecutive years. In 2023, in response to the rising insurance needs of wealth customers, the bank collaborated with AIA to launch unit-linked insurance products and introduced MyGuard, a web-based digital channel offering insurance solutions for wealth management clients. The bank has also integrated its wealth management application with BCA mobile, the bank’s larger app which caters to the investment needs of increasingly diverse customer segments. *Note: AUM: publicly reported Haryanto Tiara Budiman managing director of consumer banking
				Bank Negara Indonesia	Wealth management	11.77	11.42	3.06%	66K
	Bank Negara Indonesia’s wealth management AUM grew 3% YoY in 2023, picking up from 2022’s less than 1%. Net interest income of the segment grew 34%, jumping from IDR 2,129 billion in 2022 to IDR 2,842 billion in 2023. The bank owed its AUM growth to its 34.6% increase in bond AUM. The bank has been trying to enhance its wealth business through the development of investment services and products. The bank is also accelerating customer acquisition by focusing on business owners, payroll and professionals. *Note: AUM: publicly reported Steven Suryana senior executive vice president, Wealth Management
				Bank Rakyat	Wealth management	11.58	9.65	20.00%	33K
	In 2023, Bank Rakyat’s AUM grew 20%, doubling its growth in 2022. The bank has been simplifying bond transactions for BRI priority customers through the integration of its BRIghts application, a synergy between Bank Rakyat and BRI Danareksa Sekuritas. In 2024, Bank Rakyat hopes to explore new business models and revenue streams, such as wealth investments, and to personalise interactions with customers by providing robo-advisors for wealth planning. *Note: AUM: publicly reported Martua Hanry K Panggabean division head of wealth management
				OCBC NISP Private Banking	Private banking	3.88	1.07	262.62%	700K
	In 2023, OCBC NISP acquired Indonesia PT Bank Commonwealth from Commonwealth Bank of Australia for US$191 million. The acquisition process was completed in May 2024. Through the move, the bank hopes to build on its presence in Indonesia and strengthen existing segments since the two banks reported few overlapping clients. In 2023, OCBC NISP’s profit after tax stood at IDR 4,091 billion, increasing 23% from the previous year’s IDR 3,327 billion. *Note: AUM: APB estimate Peter Harsono private banking division head
				Bank Tabungan Negara	Wealth management	2.74	2.80	-2.14%	33K
	In 2023, Bank Tabungan Negara elevated its consumer products, including wealth management, to support its cross-selling and upselling strategy. Looking forward to 2024, the bank plans to develop a new priority segment of BTN Private for clients with more than IDR 10 billion, in addition to the current BTN Prioritas for clients with IDR 500 million to IDR 10 billion. The bank also plans to target customers with IDR 100 to 500 million by launching BTN Preferred to target the emerging affluent population. *Note: AUM: APB estimate Frengky Rosadrian Perangin-angin wealth management division head
				Bank Mega	Wealth management	0.90	0.84	7.14%	N/A
	After growing its AUM by 63% in 2022, Bank Mega’s wealth management AUM growth slowed to a 7% increase in 2023. In 2023, Bank Mega collaborated with Indonesia’s Ministry of Finance. The bank was appointed as a distribution partner for seven series of government bonds in the primary market. The bank has also been working with investment managers to provide asset diversification options for clients through mutual fund products. As for technology, the bank has been developing a wealth management system to sell wealth products. *Note: AUM: publicly reported Chairul Tanjung president commissioner
				CIMB Niaga	Private banking	0.38	0.33	15.15%	N/A
	While CIMB Niaga Private Banking’s non-deposit AUM grew 15% after exchange rates, customer deposits increased 41%, standing at IDR 5.5 trillion. In 2023, the private bank focused on its investment advisory by selecting investment products that are suitable for its clients’ profiles, as well as increasing its penetration of wealth financing to improve customer portfolio performance and net interest income. For customer relationships, the bank has been collaborating with third parties to provide wealth transfer and estate planning solutions for personal and business use. *Note: AUM: publicly reported Ariteguh Arief head of preferred, wealth and insurance business
				Total		62.14	50.78	22.37%

Methodology

Some banks publicly state their regional AUM totals, others don’t. Therefore, the datasets presented here contain a mix of estimates, shared, and reported figures. We also recognise that banks are inconsistent in the way they count AUM. And their minimum investment requirements can range widely, starting from as little as US$33,000 and going up to as high as US$1.4 million.

Totals may include assets under custody and/or loans, and may be distorted by double-counting. Where possible, we footnote for or provide some guidance on these variables. However, in the absence of enforced or agreed-upon standardisation and transparency, these inconsistencies will continue to undermine our ability to directly compare banks’ AUM.

Mid-market rates used as at 31 Dec 2023 for their respective years for non-USD reporting. For 2023: IDR-USD 0.000065