Indonesians expect higher investment returns on shorter periods.
Good things come to those who wait. This old saying needs to be pointed out to local capital market investors as they expect the almost impossible: high returns in a short period of time. Indonesian capital market investors expect gains of 12% on average per year, the second-highest after Russia among 28 countries surveyed by British multinational asset manager Schroders. However, they only spend 2.3 years on average on an investment product, the fifth-shortest period in the world, according to Schroders’ Global Investor Study 2016. This means that investors need to be educated to invest in the longer term. The public needs to invest more in the capital market as it gives higher returns rather than savings and deposits. Hence, purchasing power will improve faster. Indonesians are among the least capital market-literate investors in the region, with less than 1% of the country’s over 250m population investing in the stock market.