Jakarta –
Recently an investment company, Credit Suisse revealed that during the COVID-19 pandemic, the number of the rich in various countries experienced a sharp increase. Indonesia is also one of the countries that experienced an increase in the number of millionaires last year despite the pandemic conditions.
According to Credit Suisse, the number of people with wealth above US$ 1 million or equivalent to Rp. 14.49 billion (USD 14,486) in Indonesia is 172,000 people. An increase of 62.3% compared to the previous year (year-on-year/yoy).
So, what are the factors that make the number? the rich increase during the COVID-19 pandemic?
Credit Suisse says, the amount the rich in the country increased due to rising asset prices. One of them is driven by low interest rates which push up asset prices in financial markets.
Not only in the financial sector, the price of physical assets such as property still recorded an increase even though the pace was slowing. In 2020, the residential housing price index rose 1.55% yoy (year on year).
Then, what needs to be underlined is that millionaires do not only depend on monthly income. Investment is referred to as additional income. In fact, it could be higher than a fixed wage whose development only follows the rate of inflation.
(eds/eds)
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