LPS: Potential Investment In The Financial Sector In The Future Will Come From The Young Generation

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 Sadivewa said that the potential investment in Indonesia's financial market in the future will come from young people who are aware of investment.

However, the investment awareness needs to be followed by strengthening financial literacy in order to support the deepening of the financial market.

The well-litered young generation in financial investment can further increase investment outcomes through appropriate financial decisions and strategies. On the other hand, if the literacy level is low, it is likely that the level of utilization of financial investment products will be less optimal, or even do not understand the risks that may arise from a financial investment product," Purbaya said at the Leading Indonesia Financial Literacy (LIKE IT) event in Jakarta, quoted from Antara, Tuesday, August 15.

He referred to data from the Central Statistics Agency (BPS) which projects that Indonesia will experience a peak demographic bonus, namely that the population of productive age is greater than non-productive in 2020-2030. The number of people of productive age in 2030 is estimated at 68.01 percent of the total population.

Furthermore, Purbaya appealed to the younger generation to invest part of the proceeds of business for the future, as well as pay attention to steps that can provide long-term security and financial freedom.

He assessed that investing part of personal wealth is one of the important strategies that can help achieve this goal.

"Financial literacy and inclusion provide great benefits for the financial services sector as well as business actors who contribute to paying taxes that support government programs, such as education, health and infrastructure," he said.

Therefore, it is hoped that with the higher level of literacy and financial inclusion of the community, more and more people will use financial products and services appropriately while still paying attention to aspects of risk management and continuing to be aware of developments with technology in the financial sector.

In line with Purbaya, the Governor of Bank Indonesia (BI) Perry Warjiyo also assessed the importance of the role of the younger generation in encouraging Indonesian financial literacy.

First, the younger generation supports development financing through investments that benefit domestic investors by providing investment or financial products, at good prices through market infrastructure for wider market players.

Second, the younger generation of business actors are very influential in increasing the number of investors, will continue to be encouraged to invest through collaboration in socialization to four authorities in various regions.

Third, financial literacy must be able to make investors tough by gaining profits from investment, supporting financial market deepening.