Indonesia’s investment management industry is experiencing dynamic growth and evolution, with ProSpace Indonesia’s Asset Management Report showing assets under management increasing by 17.3% in 2024 to reach Rp1,485 trillion. The number of retail investors has grown to 12.7 million, more than triple the figure from five years ago.
Mutual funds remain the dominant investment vehicle with Rp840 trillion under management, while exchange-traded funds show the strongest percentage growth at 43%, albeit from a smaller base. Real estate investment trusts and infrastructure funds continue gaining traction as alternatives to traditional capital market investments.
“The democratization of investment access through digital platforms has fundamentally changed Indonesia’s investment landscape,” notes Sari Wijaya, Asset Management Analyst at ProSpace. “We’re seeing younger investors entering markets earlier and with more sophisticated approaches than previous generations.”
Digital investment platforms now account for 42% of new account openings and 28% of total assets under management. These platforms have successfully reduced minimum investment requirements and simplified onboarding processes while providing educational content to new investors.
Sharia-compliant investment products show particularly strong growth at 24.3%, reflecting increased demand for faith-based financial solutions. Meanwhile, thematic funds focusing on sustainability, technology, and healthcare attract interest from more sophisticated investor segments.
Regulatory enhancements continue strengthening investor protections while enabling product innovation through sandbox arrangements. Financial literacy initiatives show measurable improvements, though significant education gaps remain, particularly outside major urban centers.
For investment industry insights: Phone: +62 21 5799 8989 Email: info@prospaceindonesia.com Follow @prospace.indonesia on Instagram for updates