The increasing trend of Indonesian economic power during the last decade leads to the discussion of investment as the most trusted way in gaining financial profit. Today, it is very common to see investment topicbeing discussed in any magazine, columns, or even in social media. There are several persons who routinely discuss about investment in the personal social media account. Therefore, investment is no longer considered as alien. It has been a part of our modern life discussion. However, society awareness of investment importance does not merely in line with their actual behaviour of owning investment products. In order to completely capture this issue, we conducted a survey about investment plan of Indonesian by asking 212 respondents from nationwide.
As previously stated, investment is not a new thing for Indonesian. Public awareness of investment remains high. They already understand about investment products and the benefit of investing their money. As they understand the benefit of investment, most Indonesian was interested to invest. However, although the interest was quite high, but currently only 20% of they actually own investment products.
We further asked about their current investment products. In general, there were various kinds of investment products mentioned by respondents. Among those, the top five investment products they owned were saving, insurance, property, gold, and deposit.
People invest for different reasons. However, there were four purposes that mostly mentioned by respondents. First, people invest for saving. They love to invest to save their money. Second, people invest for health insurance. As insurance was mentioned as one of investment products people owned, having financial cover for health become their purpose of investment. Third, people invest for education. Be it education for them or their children, education become their purposes. At last, worship was also mentioned. As we all knew, pilgrim fund is relatively not cheap, and then people do invest to be able to cover their worship needs.
Comparing men and women purpose of investment, we found minor but interesting data about the purpose of their investment. Compared to women, men were more likely to make investment to cover their wedding cost. The difference percentage between men and women who mentioned this option was quite significant. There were fewer women who choose to invest for wedding cost than men.
A person’s motives of investment might be different with others. We found four motives of investment among Indonesian. First, people made investment because they would like to have a guaranteed future. They would like to have a financially secure life. Second, they have their income increased, so they had more money to invest. As they have their income increased, they had spare money to be invested. Third, age also became their motive. They felt like it was the right age for them to start investing. At last, closest person influence. People made investment because their family and spouse encouraged them.
Apparently, Gen Y starts investment much earlier than other generations. We asked our respondents about their age when they first made investment. Most respondents said that they were 20-25 years old when they made their first investment. Fewer respondents said 26-30 years old, while the least respondents were 31-35 years old.
As people tend to make investment in such a young age, we asked them about their first investment products. There were four products considered as their first investment such as saving, insurance, gold, and property. However, we also found interesting data related to the difference between men and women first investment products. Stock was more preferred by men as their first investment product, while women preferred deposit.
The popularity of investment as public discussion could be found almost in anywhere. However, we found different source of information about investment between people in two different range of age. The younger segment, those who were in 20-29 years old tend to have information about investment from their family and internet. In other hand, those who were in 30-39 years old tend to have information about investment from their friends and internet. Moreover, there was once again different habit between men and women in seeking information about investment. Men were more likely to visit financial advisor, while women were more likely to ask their spouse.
Various variances of investment products could be classified based on their term of purchasing. Women were more likely to purchase the long-term investment products than men. We further explore the frequency of buying investment products. Most respondents were not certain about their frequency of buying. However, some respondents had more regular frequency of buying investment products. Some of them buy it monthly, while some others buy it in every 2-6 months.
Comparing people investment budget allocation and their total income, we found that there were different percentages in each segment of income amounts. Those with income less than USD 10 tend to allocate less than 10% of their total income. People with income about USD 101-500 spend 10-20% of their total income. People with USD 501-750 allocate 21-30%. At last, people with income more than USD 750 allocate 41-50% of their total income. In short, we could summarize that the higher the income, the more they allocate their money to be invested.
When it comes to investment, men tend to be more generous in investing their money than women. Men tend to invest more amount than women. However, in general there were also different average amount of investment in a year among the age range of our respondents. Respondents in 20-25 years old were more likely to spend IDR 1-10 millions. Respondents in 26-35 years old tend to be more generous by averagely spending IDR 1-20 millions. At last, respondents in 30-39 years old were more likely to spend IDR 11-50 million to be invested in a year.
At last, we tried to understand people consideration before buying investment products. We found different consideration among people with different amount of income. People with income less than USD 100 consider the availability of money to be invested. Moreover, people with income USD 101-300 consider the future benefit gained from their investment. Finally, people with income between USD 301-750 tend to consider the guarantee of investment security. Apparently, people with different economic power tend to have different consideration.
For more detail you can download XLS report at the button below (bahasa). JAKPAT report consists of 3 parts which are 1) Respondent Profile, 2) Crosstabulation for each question and 3) Raw Data. Respondent profile shows you demographic profiles ( gender,age range, location by province, and monthly spending). Cross tabulation enables you to define different demographic segment preference on each answer.
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