BNI Asset Management: The Rapid Growth of Young Indonesian Investors Makes Financial Literacy a Key Challenge

JAKARTA, investortrust.id – BNI Asset Management assesses that the awareness of Indonesia's younger generation regarding financial management and investment has continued to increase over the past two to three decades, in line with the rapid development of technology and social media.

BNI Asset Management Director, Ade Yusriansyah, stated that various digital platforms such as YouTube and Instagram have made it easier for people to access information on financial management, from strategies for building cash flow, budgeting, and investing. "If you look deeper, whatever the management strategy, there's one thing they have in common: investment," Ade said in a statement quoted on Friday (May 29, 2026).

According to him, investment is the investment of capital or money to obtain future profits. However, investment must also consider the risk aspects, financial goals, and capital capabilities of each individual.

Ade believes that youth is the most strategic phase for building a long-term financial foundation. He cited Morgan House's view in his book, The Psychology of Money, which states that Warren Buffett's success stems not only from his investment skills but also from starting investing at a young age.

"Economists and financial experts emphasize that youth is the most strategic phase for building a long-term financial foundation," he said.

According to data from the Indonesian Central Securities Depository (KSEI), the number of Indonesian capital market investors increased significantly, from 7 million in 2021 to 25 million as of March 2026. This figure reflects an average annual growth of 32.5%.

Ade stated that the Indonesian capital market is no longer dominated by institutions, but is instead driven by individual investors, who account for 99.77% of the total. Demographically, more than 80% of individual investors are under 40, namely Generation Z and millennials. "From these figures, it can be concluded that there is already awareness among Indonesia's younger generation regarding financial management," Ade said.

However, he cautioned that the increased participation of young investors is also accompanied by several risks, particularly low levels of financial literacy, which can potentially trigger emotional investment decisions.

Ade cited the results of the 2025 National Survey on Financial Literacy and Inclusion (SNLIK), which showed the gap between financial inclusion and financial literacy had widened to 14.05%, compared to 9.59% in 2024.

According to him, this condition indicates that more people are using financial services, but they do not fully understand the benefits and risks of the financial products they use. Furthermore, Ade highlighted a consumptive lifestyle that can hinder the achievement of investment goals and increase the risk of being trapped by online loans.

He also warned of the risk of concentrating too much investment in a single instrument, such as crypto or low-interest deposits, that cannot keep up with inflation.

To that end, Ade shared several portfolio management strategies for young investors. First, build financial literacy sustainably to understand financial products and services and make wiser investment decisions. "Financial literacy is a strength, and it can help us make wiser and more confident financial decisions throughout all stages of life," he said.

Second, investors need to apply the principle of portfolio diversification, or don't put all their money in one basket, by combining various types of assets such as blue-chip stocks, money market funds, bonds, property, and gold. Third, discipline in financial management is considered a crucial factor in achieving long-term investment goals.

One simple step recommended is recording daily expenses and not delaying financial management from an early age. "With strong discipline, good literacy, and portfolio diversification, all of these potential risks can be minimized," Ade concluded.