Daftarsbmptn.com – The sluggish domestic and global economic conditions have prompted investors in Indonesia to seek safe havens to protect their assets. Recent trends show a significant shift from stocks, high-risk mutual funds, and speculative assets to gold and deposits, two instruments considered more stable amid market volatility.
Several economic analysts state that uncertain economic growth, persistently high inflation, and exchange rate fluctuations are the main factors influencing investor behavior.
“Investors tend to seek low-risk assets when the economy slows. Gold and deposits offer capital security and a relatively high level of liquidity,” explained Dr. Rudi Santoso, an economist from the University of Indonesia.
Gold is a primary choice due to its inflation-resistant nature and its tendency to stabilize its value over the long term. Furthermore, gold is also considered a safe haven or refuge during times of financial market uncertainty. Data from the National Gold Trade Association shows a 20 percent increase in physical and digital gold transactions during the last quarter. Both retail and institutional investors appear to be increasingly active in adding to their gold portfolios as a hedge against economic uncertainty.
Meanwhile, bank deposits are also gaining popularity. These products offer fixed interest rates, guaranteeing a return on investment. In a sluggish economy, deposits become an attractive alternative because the risk of capital loss is much lower compared to capital market instruments. Major banks in Indonesia have reported an increase in new deposit openings, especially for medium- to long-term tenors, as investors seek financial stability.
Market observers refer to this shift as a flight to safety phenomenon among investors. Instead of pursuing high returns from risky instruments, investors are choosing safer assets to mitigate potential losses. Furthermore, this change in strategy is also influenced by global conditions such as rising benchmark interest rates in the United States, geopolitical tensions, and commodity price volatility, which also impact the domestic market. Some individual investors say they feel more at ease by holding part of their portfolio in gold and deposits.
“I choose to invest 40 percent of my assets in gold and 30 percent in deposits. With the current economic conditions, this helps me stay safe without having to worry about stock market volatility,” said Linda Wulandari, a retail investor from Jakarta.
While gold and deposits offer security, analysts still emphasize the importance of diversification.
“No single instrument is completely risk-free. A combination of assets with different characteristics is still necessary for a more balanced portfolio,” added Dr. Rudi.
With the economy still slowing and the market outlook fluctuating, the trend of investors turning to gold and deposits is likely to continue. This strategy allows them to preserve the value of their assets, reduce the risk of loss, and maintain sufficient liquidity to weather future financial uncertainty.