Southeast Asia’s largest lender, DBS Bank, plans to tap into the wealth business in Indonesia. The recent tax amnesty has disclosed US$ 365 billion of previously unreported assets. Approximately US$ 289 billion of these assets are parked onshore. The government has approved these funds to be invested into assets such as gold, property and infrastructure.
Head of DBS’s consumer banking and wealth management, Tan Su Shan, said “The customers that took the tax amnesty and moved their money back, they will be looking for opportunities to invest onshore.” RFi Group data shows that retail banking customers in Indonesia plan to increase their investment over the next 12 months.
Right now the onshore platform is not as robust as in some of the international financial cities, but there lies an opportunity for us to grow our platform.
“Right now the onshore platform is not as robust as in some of the international financial cities, but there lies an opportunity for us to grow our platform,” Ms Tan said. She mentioned that the bank may have plans to offer fixed maturity products that bundle several corporate bonds together into a unit trust.
DBS expects the acquisition of Australia & New Zealand Banking Group businesses to increase its wealth and retail customer base from below 100,000 to more than 600,000. The acquisition is expected to be due for completion early next year.