Articles & Tips

Starts from a cup of coffee


What are the basic tips to start investing? I have probably been asked such questions hundreds of times before. To get oneself to start investing is not a rocket science. In today’s world, we no longer need a large sum of capital to start investing. Almost every bank in Indonesia offer service to facilitate one’s investment needs with very affordable investment instruments. Taking one example is mutual funds. With a mere Rp100,000, we can now start our investing journey. Most Indonesian banks also offer a wide variety of mutual funds with underlying covering from money markets, bonds and equities, catering for different individuals with different risk profile.

Despite the services made available, the number of Indonesians that have participated and invested in mutual funds and equities are relatively low, especially considering the large population of the country. What may be lacking is probably one’s discipline to set money aside for investments. When we heard the word “investing”, we often imagine the need to put aside a large chunk of our income, significantly cutting back on our spending to make ways for our investments. That is not exactly accurate.


With various branded cafés opening up in major cities of Indonesia, it is more than common for most of us to spend Rp30,000, or Rp50,000 or even more just for a cup of coffee nowadays. However, if we really do the mathematics, Rp30,000 per day equates to Rp11mn per year. If we invest Rp11mn per year assuming annualized return of 12%, after 10 years, our investments will equate to Rp215mn. If we continue for 20 years, then our investments may reach Rp882mn. Indeed, if we assume to put aside Rp50,000 per day, assuming 12% annualized return, our investments will reach Rp358million after 10 years and Rp1.47billion after 20 years. Assuming Rp70,000 per day, the figure will come to Rp500mn after 10 years and Rp2.06billion after 20 years.


Source: PT. Schroder Investment Management Indonesia

Most of us have indeed recognized the need to invest in order to meet our future needs. However, we often complain about how difficult it is to set aside some money to start investing. On the other hand, it is often very easy of us to justify spending for a cup of coffee acquired from branded café. In by no means that we are singling out consumption of coffee from branded cafés. Of course it is absolutely fine to indulge ourselves on a cup of coffee especially for those that earn sufficiently high income. However, the illustration merely seeks to point out on how easy it is to set aside part of our income to start investing. Invested properly, the little amount that we set aside daily may accumulate to meaningful size in the long-term.

With all the services provided by banks, it is indeed easy for anyone to start investing. With a little discipline to set aside a small amount of our income on daily basis, we can embark on our investing journey which may prove to be very beneficial for our future. Various investment instruments have been made available today which makes investing an affordable journey. With a mere Rp100,000, we can now start our investing journey. At today’s age, there is almost no reason not to start investing.


If you are interested to know more about the mutual fund investments click here:

Mutual Fund Benefits




Important Information:

The views and opinions contained herein are those of Teddy Oetomo, Head of Intermediary, and may not necessarily represent viewsexpressed or reflected by PT Schroder Investment Management Indonesia (“Schroders Indonesia”) view. For professional investorsand advisers only. This document is not suitable for retail clients. The material is not intended to provide,and should not be relied on for,accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders Indonesiadoes not warrant its completeness or accuracy. This does not exclude or restrict any duty or liability that Schroders Indonesia has to its customers under Indonesian laws and regulations.” PT Schroder Investment Management Indonesia (PTSIMI) had received an investmentmanager license from, and is supervised by the Indonesian Financial Services Authority (OJK).