Local overview

Find out how global investment trends in areas such as sustainability and private markets are affecting Indonesia — as well as how local strategies are being adapted for the new investment landscape

New paths in a changing investment landscape

Investors currently face difficult challenges. Ongoing inflation and geopolitical uncertainty – coupled with the need to decarbonise our economies – are making markets difficult to navigate. To understand how their strategies and views are adapting, Schroders’ Global Investor Study surveyed over 23,000 people who invest, from 33 countries and territories around the world.

73%
of people in Indonesia agree that higher inflation and interest rates mean we have entered a new regime in policy and market behaviour
61%
have changed their investment strategy in light of this and
36%
intend to do so

Yet people are still optimistic about returns

How people think their returns over the next 12 months will compare with the previous 12 months

What investments have become more attractive to people in Indonesia over the last six months?

Ranked by the difference between “more attractive” and “less attractive”

#1
Crypto-currencies
#2
Digital assets
#3
Equity exchange traded funds (ETF)

Sustainable investment: time to engage

As people understand more about sustainable investing, they are thinking in greater depth about what it means. One aspect is “active ownership”, where investment managers influence company boards and management teams so that more sustainable practices are properly considered for the benefit of long-term value creation.

A large majority of people in Indonesia believe that engaging with companies on sustainability will benefit their investments

Do people in Indonesia think encouraging companies to act sustainably helps generate long-term value?

As people in Indonesia learn about investing, they become more convinced that active ownership is effective

Top three areas where people in Indonesia think engagement is most important

More information and education would mean more people would invest sustainably

Yet overall, people in Indonesia remain enthusiastic about sustainable investing

Whether people in Indonesia are attracted to sustainable funds and why

Moving forward with private assets

The survey shows people generally understand the issues around investing in private assets. (Private assets include private equity, real estate, infrastructure, and private debt and credit, i.e. direct lending to companies.) This is an important finding, as increasingly regulators globally are allowing ordinary investors to access these types of investments, which were previously reserved for pension funds and similar large institutions.

The top three private assets people in Indonesia most want to invest in

33%
Private equity
25%
Infrastructure and renewable energy
24.6%
Real estate

People in Indonesia think private assets can improve sustainability — and also boost performance and diversification

Reasons why people in Indonesia would invest in private assets

But they acknowledge the complexities around private assets, and admit they need to gain experience with them

Top five perceived barriers to people in Indonesia investing in private assets

On average, people in Indonesia would consider putting

Schroders commissioned alan. agency and iResearch to conduct an independent online survey of more than 23,000 people who invest from 33 countries and territories around the globe, spanning across Europe, Asia and the Americas. The survey was conducted online between May 26 and July 31, 2023. The research defines “people” as those who will invest at least €10,000 (or the equivalent) in the next 12 months and who have changed their investments within the last 10 years. Due to this threshold, Schroders acknowledges that the research findings are not representative of everyone’s experience.

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