Indonesia is set to become the biggest market for luxury goods in Southeast Asia, the head of LVMH for South Asia, Southeast Asia and the Middle East said, according to CNBC.

Currently, wealthy Indonesians rely on overseas trips to Honk Kong and Singapore to satisfy their yen for high-end jewelry, clothing and other accessories, Ravi Thakran said on Thursday.

But political stability and a thriving economy focused on improving infrastructure is sure to boost Indonesia's luxury market, he told CNBC. "I really see a new 'I' emerging in BRICS. Going forward, we believe the Indonesian market will be one of the big surprises," Thakran told CNBC.

According to CNBC, LVMH has plans to open 20 to 22 new Sephora cosmetics outlets in Indonesia over the next two or three years.

Jewelry and watches have become popular status among Asia's wealthiest, Thakran said in the report. "When you look at jewelery or watches, Asians are buying the highest priced segment and the most sophisticated of the products."

He said LVMH was still bullish on growth in China, which is the world's second-largest market for luxury goods. "In fact, Chinese numbers across the region, be it in Dubai, Singapore, Hong Kong, they are buying more and more in all these markets."