Observer: Economic Recovery, Time For Millennial Investors To Enter SBN Market

Illustration of a customer buying a Savings Sukuk (ST) Series ST006 through the Mobile Banking application in Jakarta. (Photo: ANTARA)

JAKARTA - The massive economic recovery and the shrinking composition of foreign investors in the Government Securities (SBN) market are considered to open opportunities for retail investors from among millennials.

Chief Economist from Danareksa Research Institute Rima Prama Artha in Jakarta, Tuesday, Monday, said the economic recovery was reflected in data on Gross Domestic Product (GDP) growth which in the first quarter of 2022 reached 5.01 percent (year on year/YoY).

On the other hand, foreign investors' ownership in the SBN market decreased to 16.56 percent, so that the majority of securities were held by domestic investors.

"Looking at the relatively high economic growth, positive current account, and declining foreign ownership in government securities, the investment climate in Indonesia is getting better after the pandemic," said Rama.

He explained that the number of millennial investors in the securities market also continues to increase, which reflects that investment interest and financial literacy carried out by the government and market players are showing real results.

However, Rama reminded novice investors to be careful in managing their investments by choosing trusted investment instruments.

In order to increase millennial investors, Danareksa also conducted a Danareksa Mobile Talkshow (Darling) entitled Talking about Business and Investment Opportunities in 2022 in Yogyakarta and Semarang.

PT Danareksa (Persero) Corporate Secretary Putu Dewika said this activity was part of the Danareksa Social and Environmental Responsibility Program (TJSL) and the Created Share Value strategy carried out with its subsidiaries to improve financial literacy among millennials.

He hopes that by understanding literacy on financial management, participants can manage their funds more strategically and choose trusted investment instruments.

"This is also in line with the government's efforts to deepen the domestic financial market by increasing the value of domestic investment," he said.

Dewika added that amid the rise of digital investment fraud among the younger generation, financial literacy education is very important so that millennials only invest in trusted investment products.

"One of them is through mutual fund products from PT Danareksa Investment Management," said Dewika.