LPS: The Young Generation Must Invest Smartly, Not Just Because They Join Others

Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Purbaya Yudhi Sadive. (Photo: Doc. Antara)

JAKARTA - Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Purbaya Yudhi Sadive reminded the younger generation to invest with smart strategies.

In that context, he emphasized that investing should not only be based on reasons to follow other people.

"You have to invest smart. You have to understand very well what you are investing in, don't just join in. Later you will only fear of missing out (FOMO)," said Purbaya during the Like It 2023 activity in Jakarta, quoted from Antara, Monday, August 14.

Purbaya sees that many young people today have shown interest and are starting to invest in capital markets and other financial markets.

However, the results of the 2022 National Literacy and Financial Inclusion (SNLIK) survey conducted by the Financial Services Authority (OJK) showed that the Indonesian people's financial literacy index was at 49.68 percent. Meanwhile, the financial inclusion index reached 85.10 percent.

The Gap provides gaps for various financial risks that may arise. There is a gap that needs to be balanced between inclusion and literacy. On the one hand, rapid development, on the other hand literacy is not fully understood by the community," said Purbaya.

Menurut Purbaya, anak muda Indonesia perlu dibekali dengan literasi keuangan yang mumpuni, mengingat mereka akan menjadi kelompok yang mendominasi investor di masa depan.

Sufficient financial literacy can help the younger generation determine the right decisions and financial strategies. Meanwhile, if they are not low in literacy, they may not understand the risks that arise from investment products.

"So, what's important is that investors understand what you invest in and also understand your risk profile," explained Purbaya.

He said LPS will also continue to synergize and collaborate with various stakeholders to conduct socialization and education to support financial literacy, especially those related to banking products or other financial services.