TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Digital investment applications for millennials increasingly promising
The rise of investment support applications makes it easier for millennials to choose a container that can facilitate their needs
Change Size
T
he rise of investment support applications makes it easier for millennials to choose a container that can facilitate their needs. In this era, millennials prefer things that are simple, such as digital investment solutions.
Investment is the action of using funds for a certain period of time with the aim to generate profit. Before the digital era entered Indonesia, investment could only be done conventionally, such as by opening an account with a bank.
For example, if someone wants to buy reksa dana (mutual funds), he or she must personally approach a bank or office that provides mutual fund services with the aim of opening an account.
Once the account is ready, the investor can only buy mutual funds with a minimum purchase of Rp 500,000 (US$35).
But now, there are many investment applications that attract young investors. These applications must have been licensed and overseen by the Financial Services Authority (OJK).
They have specific focuses according to various investment strategies. But at this time, the realm of investment is not only owned by e-commerce, but e-marketplaces that have penetrated the investment world by adding several investment services to their applications.
These types of investment include reksa dana, digital gold savings as well as stocks, and these investments work in different ways. Examples are ShariaCoin, Pegadaian (pawnbroking) Digital and INDOGOLD for digital gold savings.
There are mutual fund applications like Bibit, Bareksa and Tanamduit, while applications focusing on stocks or trading include FBS, Trading 212, Forex Financial Investment and others.
Account registration on the digital investment applications is fairly easy, in fact, there are some applications that actually do not require users to provide personal data besides the signature, which can also be done online.
___________
Investors must stick to the principle of investment, namely placing only funds they could afford to lose.
___________
In e-commerce like Tokopedia, if we want to save gold there, we only need to prepare a balance of only Rp 500.
Not only that, Tokopedia’s gold savings service is offered in collaboration with pawnshop Pegadaian for storing the gold in physical form.
Furthermore, it is not only gold savings that have very affordable initial capital.
Even for mutual fund investment we only need initial capital of Rp 10,000. Tokopedia collaborates with financial technology (fintech) provider OVO, where we can make payments via OVO without having to go to the ATM or convenience store.
Similar to Tokopedia, to invest digital gold savings in ShariaCoin, investors only need initial capital of Rp 500. Payment can also be made via bank transfer.
Even more interesting, in the ShariaCoin application we can transfer gold to other users. We can also sell gold in minimum amounts of 0.01 grams.
Withdrawals of gold from ShariaCoin will be sent to the user’s address. The remaining gold balance sheet that has not been printed because the amount is insufficient or because the user desires so remains in the gold balance, and each withdrawal is subject to a certificate printing fee according to the number of pieces listed.
The minimum withdrawal amounting to Rp 10,000 is not subject to admin fees for certain banks, such as Bank Nasional Indonesia (BNI), Bank Central Asia (BCA), Bank Rakyat Indonesia (BRI) and Mandiri.
From these things, it can be seen that there are not too many differences in the provisions contained in these applications, whether gold investments or reksa dana investments.
The low minimal investment requirement, convenience, security and efficient payments certainly make millennials interested in trying such new services. In addition, the benefits obtained from investment are also greater than having to save at a bank with low profits.
These various applications prove that technological progress has brought about significant changes and impacts on the economy.
Such services benefit not only millennials and other investors, but the country as a whole.
The existence of online platforms as mentioned above, is expected to accelerate growth of the digital economy in Indonesia. However, investing also needs to be based on good knowledge.
Deviating from the original intention of earning a profit could turn out to be harmful. Investors must stick to the principle of investment, namely placing only funds they could afford to lose.
This principle is useful for considering personal risk with the characteristics of each of its assets, investors also need to set limits on losses they could tolerate, diversify and most importantly, determine the objectives of the investment.
By investing since from a young age on, millennials have directly taken a role in developing the country’s economy.
For those of you who haven’t invested digitally, what are you waiting for?
_________
University of Indonesia’s School of Economics student majoring in banking and finance administration
