WEALTH MANAGEMENT LANDSCAPE -21 AGUSTUS 2019

Handayani – Certified Wealth Management / Consumer Director of BRI

 Pillars of wealth management (It is not how to be rich but on how to optimally use our wealth)
a. Protection and preservation
b. Growth and accumulation. Risk is also talked here. Different people might have different
appetites. Thus, wealth management is also about matching the products with the health of
people
c. Distribution and transaction: Give you a peaceful mind
 Pillar 1: Protection and preservation
a. Insurance: beneficiary is stated clearly.
b. Hedge: if we buy products that have currency’ risk – exposure in multicurrency then you need to
hedge.
c. Trust: Stated who own your wealth and not specifically for your biological family
d. Diversification
e. Residence and citizenship
 Pillar 2: Growth and Accumulation  how to put our wealth to make sure that we have opportunity
to be wealthier since everyone wants to have more and more money in our pockets. Put money in
an instrument that matches with the risk
a. Tax management: Paying efficient tax. No redundancy in paying tax.
b. Investment management: It is a hot topic now. The introduction of 10x gov instrument to the
market, every month will issue new products, except in Idul Fitri and December. Form: sukuk,
surat berharga. Company prefers to collect cash from the market instead of having bank’s loan
 cheaper, does not have to put collateral, fast or does not have to wait the bank. Government
pull the funds from market to develop initiative and strategy.
c. Business venture: You don’t have to be rich to invest in business venture. Through crowd-funding
 basis of ecosystem. Example: Investree. Only need eyes to see and ears to listen the potential
startups to put the money in
d. Money management
 Pillar 3
a. Estate planning
b. Pension
 Failure in wealth management is caused by:
a. No clear goals: when do you want to get retired, how much money do you need by that, etc
b. Inadequate of life and health management
c. Greedy and high speculation: maximal gain to execute / maximal loss to bare
d. Insufficient portfolio and investment management
e. Poor debt management or over leverage
 Challenge in Indonesia
a. Lack of concept
b. Less banking minded
c. Interest rate oriented
d. Information system
e. Unique and personalized
f. Human capital
g. Product limitations
h. Regulation