High consumption offers 'investment opportunities'
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An expert said Indonesian's high-consumption lifestyle is reflected in the country's economic growth, which is mostly supported by domestic consumption; hence, people should be aware of the importance of investment, especially on a long-term basis.
“Indonesians must be aware of the importance of investment. We should set aside some of our income to make long-term investment, so why don’t we make use of the capital market?” Manulife Asset Management president director Legowo Kusumonegoro said in Jakarta on Wednesday.
Legowo said the number of investors in the domestic capital market was very low compared to the entire population.
“Only 500,000 of the 143 million people categorised as middle class have invested in the capital market,” he said.
The analyst added that countries across the globe were paying close attention to Indonesia due to its huge market potential and its rapidly growing economy. In fact, he said, domestic consumption was still the main driver of the Indonesian economy.
“With such strong consumption, even if we don’t do anything, our economy still can grow by 5.5 per cent from consumption. Foreign investors are happy with the situation and are interested in investing in our country, but why does the number of domestic investors reach only 500,000?” Legowo asked.
