Investment Trends in Indonesia: Jewelry & Gold Savings are in High Demand

Indonesia Financial Services Authority (OJK) said that global and domestic market and economic conditions in 2023 have experienced many turbulences and surprises, but still provide positive developments in the capital market sector. This can be seen from the public’s continued interest in investing. Data from the Indonesia Stock Exchange states that capital market investors consisting of stock, bond, and mutual funds investors increased by 1.85 million investors to 12.16 million investors last year[1].

Jakpat conducted a survey of 2,088 respondents throughout Indonesia about investment trends, both for those who already have it and those who plan to invest.

The results of the survey show that 3 out of 4 people have had an investment. In more detail, 83% of these owners manage their investment products regularly with jewelry as the most managed product at 30%. Other products that are also popular are precious metals/gold savings (21%) and property (17%). Meanwhile, 16% of respondents routinely manage mutual funds and 13% manage stocks.

“Every year there is always a positive growth in the number of investors in capital market products, both stocks and mutual funds. The largest growth occurred in the young investor segment. Although these young investors still dominate, their asset control is not as large as investors from the older segment,” said Jakpat’s Head of Research, Aska Primardi.

Routinely manage investments

Regarding the beginning, 43% of respondents admitted to starting investing in their 20s. While others start investing at the age of 30-34 years old with a percentage of 20%. Then, 44% of people have been investing for more than 2 years, while 1 out of 5 people have started investing regularly for less than 6 months.

Talking about the source of investment funds, almost 60% of respondents stated that it came from salary. Other sources are savings (53%) and bonuses (46%). Over 50% of people invest 10-30% of their monthly income.

“The high interest in investing also seems to be followed by sufficient literacy about investment. This can be seen from the large allocation of investment funds from the total monthly income which is not too large. But, the important thing is that this is routinely done every month. In addition, it seems that they can also separate hot money and cold money that can be used for investment,” said Aska.

More than 40% of respondents get information related to investment products from the recommendations of close ones such as family, friends, or relatives. Some others from social media such as unofficial YouTube accounts such as professionals or reviewers (27%) and official websites of investment product providers (26%).

Digital investment platforms

In addition to gold savings, investment provider platforms that are also widely used are mutual funds (16%) and cryptocurrencies (13%). Stocks and bonds are also in demand.

Bibit is the most widely used platform for digital investment, namely for mutual funds (62%), stocks (46%), and bonds (62%). On the other hand, DANA’s digital financial services are also commonly used as investment platforms, namely in gold savings (30%) and mutual funds (23%).

[1] https://sikapiuangmu.ojk.go.id/FrontEnd/CMS/Article/40835