These Are 6 Popular Investment Choices That Are Profitable In Indonesia, One Of Which Is Stocks

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - Now investment is increasingly accessible to people with middle to lower economies. This has had a significant impact on the development of Indonesian investment.

Based on the time period, investments are divided into two categories, namely short-term and long-term investments. The two categories have their respective advantages and disadvantages.

Here are some choices of investment instruments that are quite popular in Indonesia, as reported by VOI from hsbc.co.id.

1. Deposits

Deposit investment is similar to savings. With low risk, deposits are often chosen by novice investors. The difference with savings is the interest rate and maturity date.

Compared to ordinary savings interest, the deposit interest rate is higher. In general, have interest in the range of 5-6 percent per year. Some banks offer interest rates of more than 6 percent.

The more money you invest, the higher your deposit interest rate. Even though it has a higher interest rate, the money invested in deposits cannot be withdrawn at any time like savings. Money can be withdrawn when the deposit is due.

2. Gold

Gold is an attractive choice for investors who are more interested in physical investment and clearer intrinsic value. Like deposits, the risk of investing in gold is also low. The value tends to be stable and has increased every year.

Antam's precious metals. (Photo: Doc. Antam)

Choose gold bullion if you want to invest in gold, because the value of pure gold bullion is judged by its weight. We also have to prepare a storage area for the gold that has been purchased. For storage, we can keep our own or pay for the deposit box rental at the bank.

3. Property

This type of investment has several similarities with gold investing, which is a physical object that we must buy. Apart from being low risk, its value is also confirmed to continue to increase without much fluctuation.

There are several models of property investment that are often used. The simplest way is to buy land, build property on it, and sell it when the price is high enough.

Hotel illustration. (Photo: Unsplash)

We can also use the second method, namely by renting out the property to keep income flowing. Because it is in the form of property, building damage is definitely taken into consideration. Property maintenance costs also need to be considered when selling property.

4. Shares

Stock is actually proof of ownership of a company. When we buy stock, we are basically buying a portion of the ownership of the company that issued it. The more shares that are purchased, the greater the percentage of company ownership that is obtained.

Return on stock investment often comes from dividends and growth in the value of the stock itself. Dividend itself is taken from the return earned by the company. However, not all companies distribute dividends to their investors. Some companies prefer to use the returns they get for business development.

5. Mutual Funds

Mutual funds are divided into 5 types. The five types of mutual funds include money market funds, fixed income mutual funds, equity funds, mixed mutual funds and index mutual funds.

The way mutual funds work is to collect funds from several investors and collect them together before investing in investment instruments in the capital market.

Mutual funds have different potentials and risks. The lowest risk is with money market funds. Meanwhile, for the greatest potential return with a risk that is also high, is in equity funds.

6. Peer to Peer Lending

The type of investment in peer to peer lending is relatively new in Indonesia. However, its popularity has continued to skyrocket along with legal clarity and simplicity. Many fintech lending companies are pursuing this investment model. The amount of money circulating in peer to peer lending investments also continues to grow.

The daily activities of the millennial generation. (Photo: Unsplash)

In this type of investment, we basically lend a certain amount of money to parties in need, both individuals and business entities. The return on this type of investment comes from mutually agreed loan interest.

Many fintech lenders offer loan interest rates of 18 percent per year. In addition, we can also start this investment starting from just IDR 100,000.