Heaptalk, Jakarta — Indonesia’s digital investment landscape is experiencing remarkable growth, driven primarily by the rising generation.
According to Indonesia’s Central Securities Depository (KSEI), the number of capital market investors grew by 11% year-to-date, rising from 12.17 million in 2023 to 13.45 million as of August 9, 2024. A substantial portion of these investors, 54.96%, are under the age of 30, signifying the pivotal role of youth in shaping Indonesia’s investment trends.
The latest Populix report demonstrated that around 47% of respondents believe digital investments offer more lucrative opportunities than conventional investment forms, such as savings and deposits. The data also indicated that the growth of digital investment adoptions in the archipelago reflects the growing confidence in digital platforms and a need for financial literacy.
“Simplifying complex investment concepts will drive broader financial inclusion, enabling more people to make informed decisions aligned with their financial goals in the digital economy,” Co-Founder and CEO of Populix, Timothy Astandu, emphasized.
Furthermore, Populix’s findings explained that most respondents (55%) had a basic comprehension of digital investments, particularly in mutual funds and stocks. While 42% of respondents acknowledge the difference between digital investments and traditional forms like savings, 44% admit limited insight, and 14% are unaware of the distinction.
On the other hand, around 89% of respondents recognized the risks associated with digital investments and comprehended how risk management is conducted. This awareness is particularly prevalent among working men residing in Greater Jakarta and belonging to the upper-middle socioeconomic class. Nevertheless, the data revealed that about 49% still struggle with measuring the success of their digital investments, with 18% expressing complete unfamiliarity with performance metrics.
Indonesia’s digital investment behavior
Before embarking on their investment journeys, 90% of respondents actively seek information about digital investments. Notably, men and those from higher socioeconomic backgrounds are more likely to research market and investment trends multiple times a month.
At the same time, women tend to be less engaged in this activity. Transparency and security are key factors driving trust, with 50% of respondents expressing confidence in the safety and clarity provided by digital platforms.
According to respondents, the main attractions of digital investment include the convenience of making transactions anytime and anywhere and the low initial capital requirements. However, concerns remain about the stability and longevity of investment platforms. Respondents worry about potential platform bankruptcies, operational issues, and market volatility, which can deter some from investing.
Future digital investment plans
A significant 67% of respondents plan to invest digitally in the coming year, seeing it as a practical means of achieving financial security and boosting income, even with minimal capital. Among these investors, around 74% have allocated investment budgets of up to Rp5 million, with 33% setting aside less than Rp1 million.
The objectives for these investments are diverse:
- Emergency funds (68%)
- Additional income (61%)
- Purchasing assets like homes or vehicles (48%)
- Retirement savings (46%)
- Education funds (40%)
- Portfolio diversification (25%)
Nevertheless, one-third of respondents remain hesitant about digital investment due to limited knowledge and fears of capital loss.
