Populix Survey: In 2022, People Are Increasingly Literate on Investment

The Indonesian people are considered to have a better awareness of investing since the pandemic. They started to have financial planning, including an emergency fund, health insurance, and investments.

Based on the results of a survey conducted Populix title "Insights and Future Trends of Investments in Indonesia” shows that the majority (72%) of respondents said that they started investing, especially among the millennial generation. This figure has increased compared to the previous survey which was held in January 2021 which revealed that only less than half of the respondents (44%) had started investing.

Populix Co-founder & CEO Timothy Astandu said that this latest survey shows that more and more young people are investment literate. The presence of various investment applications certainly encourages inclusivity for young people to start investing, as seen from the majority of respondents who choose to invest through applications.

The survey, he continued, also showed that respondents had considered aspects of their financial condition, information clarity, and the risk profile of each investment instrument. This means that now they have better financial awareness and literacy before starting to invest.

"Surely this is a positive note for Indonesia. However, this phenomenon also serves as a reminder that collaboration is needed between various parties to continue to balance the interest of young Indonesians in investment trends with even better financial literacy," he said in an official statement, Wednesday (30/11).

Populix Survey

Furthermore, the survey shows that the majority of respondents (64%) of all age ranges have the main goal of investing to collect emergency funds. In particular, when looking at the investment behavior of each generation, the survey shows that apart from collecting emergency funds, generation Z and millennials tend to invest to earn additional income, while generation X aims to collect retirement funds.

Mutual funds (47%) are still the most preferred investment instrument by respondents. Followed by gold jewelery (46%), stocks (32%), precious metals (30%), deposits (29%), property (21%) and crypto assets (20%). Respondents who come from generation Z tend to choose mutual fund investments, while millennials and generation X are interested in investing in gold jewelry. The two main reasons respondents chose the intended instrument were because it was registered with the OJK and had a low risk profile.

To find information about investment instruments, the majority (68%) of respondents use social media platforms, especially YouTube and Instagram. In addition, they also seek official information from OJK (42%), friends or colleagues (40%), official websites of financial institutions (34%), and an influencer (32%).

Source of funds and investment platform used

Furthermore, in investing as many as 5 out of 10 respondents said they set aside some funds from their regular income, as well as their savings. Among the 54% of respondents who allocated their budget from regular income, the majority set aside around Rp. 100 thousand-Rp. 250 thousand for their income.

On the other hand, respondents also allocated 5% -10% for investment funding sources from other income, such as savings, bonuses or additional income, THR, funds from family, emergency funds, and proceeds from selling assets.

Next, respondents also tend to invest through application platforms, banks, or both. As many as 71% of respondents chose the application because of the convenience in one application, the requirements are not complicated, and it requires relatively small capital. Seed Application most chosen by respondents (56%), followed by DANAeMAS (33%), Ajaib (28%), Tokopedia (25%), and OVO Invest (20%).

On the other hand, 44% of respondents who chose to invest through banks said that they considered banks to be more trusted for investment purposes, had convenience and uncomplicated conditions. Some of the main banks trusted by respondents are BRI (31%), BCA (31%), Bank Mandiri (30%), and BNI (27%).

This survey also found that despite increasing interest in investment, there were still 28% of respondents who did not want to invest because their financial condition was not sufficient to start investing (78%). In addition, there is still an understanding that investment requires large amounts of funds (36%), are afraid to take risks (32%), have difficulty understanding information about investments (20%), have been traumatized by investment fraud in the past (14%), and conflict with beliefs or at risk of containing usury (8%).

However, 95% of respondents said they already have plans to invest in the future, especially in precious metal instruments (49%), gold jewelery (42%), stocks (42%), property (37%), mutual funds (35 %), and deposits (32%).

For the record, this survey was conducted on November 24-28 2022 via online via the Populix application. There were 1.038 male and female respondents aged 18-55 who participated in the event. This quantitative survey was conducted in the form of a closed questionnaire with single multiple choice and complex multiple choice formats.