Navigating Investment Management as an Expat in Indonesia

Navigating Investment Management as an Expat in Indonesia


As a financially literate individual, you likely recognize the significance of investing. However, achieving investment management in a foreign land requires careful consideration and planning.

Let’s explore some essential things expats should consider to achieve effective investment management!

Checklist Before Starting Investing

  • Define Your Financial Goals: As an investor, start by clearly defining your objectives. Are you investing for retirement, saving for a down payment on a house, or seeking to grow your wealth over the long term? Understanding your financial goals will help shape your investment strategy and asset allocation.
  • Assess Your Risk Tolerance: Evaluate your risk tolerance to determine how much risk you can comfortably withstand in your investment portfolio. Understanding your risk tolerance will guide your asset selection and portfolio diversification.
  • Establish an Emergency Fund: Before allocating funds to investments, aim to set aside at least six months of living expenses in a liquid and easily accessible asset. An emergency fund is a financial safety net, providing peace of mind and protection against unexpected costs or income disruptions.
  • Educate Yourself: Take the time to educate yourself about the different investment options available, including stocks, bonds, crypto, real estate, etc. Understand each asset class’s risks, potential rewards, and factors influencing investment performance, such as market trends, economic indicators, and geopolitical events.

By addressing these checkpoints before investing, you’ll make informed decisions, mitigate risks, and work towards your financial goals. Regularly review and adjust your strategy to stay on track.

Investment Tips for Expats in Indonesia

Each country has different regulations regarding investment for foreigners, taxation of investment income, and repatriation of funds. But there is no need to worry; you can seek a professional advisor specializing in expatriate finances to understand those regulations.

Then, diversify your investment portfolio. Consider your risk tolerance, investment timeline, and financial goals when determining the appropriate asset allocation for your portfolio.

You can consider crypto to diversify your investment portfolio. Here’s the reason:

Crypto technology and accessibility will greatly help expatriates who want an investment asset that can be accessed anywhere in the world 24/7. So, if you plan to move to another country, you can still easily access your assets from any region.

Navigating Investment Management as an Expat in Indonesia

To start investing in crypto, you can create an account on Luno registered and supervised by BAPPEBTI – Commodity Futures Trading Regulatory Agency. You can also use promo code SCBNLUNO while registering on Luno to get free Bitcoin worth IDR 100,000.

Why Investing Matters

If you haven’t started any investment yet, here are some reasons why you should start investing:

  • Combating Inflation: Inflation reduces the purchasing power of your money over time. To secure your financial future, manage your income and investments wisely, so you don’t have to worry about your future needs such as living costs, health care, etc.
  • Diversification for Financial Resilience: While saving money in a bank is prudent, relying solely on traditional savings may limit your wealth-building potential. Diversifying your assets across various investments can help mitigate risks and maximize returns.
  • Investing Offers Growth: Investing allows your money to grow, even in the middle of financial obligations like loan repayments.

Always keep monthly instalments under 30% of your monthly income. Look for low-interest credit options and invest some savings in instruments with higher returns than your instalment interest.

By understanding the significance of investment management and adopting a strategic approach, you can confidently navigate financial uncertainties and work towards building a secure and prosperous future.

Luno is registered and supervised by the Commodity Futures Trading Regulatory Agency (Bappebti). Trading and investing in crypto assets is a high-risk activity.  Read more on our Terms of Use here:

Find this article helpful? Check out other articles from Social Expat for more updates about Hotel & Restaurants in Indonesia!

Natalia is a Visual Communication Design baccalaureate and a writing aficionado based in Jakarta, Indonesia. An impulsive lover of knowledge, especially in art, literature, culture and health, who insists to share of her findings through words. Her comfort nestles around writing poems or short excerpts, but she has also developed experience in writing articles and journals.

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