In the face of growing global and domestic economic uncertainty, low-risk investment options have emerged as a popular choice among Indonesian investors. Ongoing conflicts, such as the Israel-Iran situation and trade tensions, have made the financial landscape more volatile. In response, many are prioritizing stability over high returns. According to Bank DBS Indonesia, demand for safer instruments is rising across various investor profiles.
“If we look at the current market conditions, the level of uncertainty is quite high. But we remain positive. We continue to support our clients and prospective clients in identifying opportunities that can help them preserve and grow their wealth,” said Djoko Soelistyo, Head of Investment Product & Advisory at PT Bank DBS Indonesia.
Why Investors Are Turning to Low-Risk Options
Market volatility and geopolitical concerns have significantly impacted investor behavior. With the future of markets looking unpredictable, investors are now prioritizing capital preservation. This trend is especially apparent among upper-middle-class clients, who increasingly seek products that offer consistent income.
“To be completely honest, the most popular products right now are those that provide regular income,” Djoko explained during a media briefing in Jakarta. His observation reflects a broader shift in market sentiment, with many turning to instruments that offer stability and predictable returns.
Top Low-Risk Investment Options in 2025
Here are three standout low-risk investment options gaining traction among Indonesian investors:
- Deposits: While not offering the highest returns, deposits remain a secure choice. They provide predictable interest, and funds are insured by the Indonesia Deposit Insurance Corporation (LPS). Moreover, deposits are unaffected by market fluctuations, making them ideal in uncertain times.
- Bonds: With yields ranging from 6.7% to 6.8% over ten years and a low tax rate of just 10%, bonds are highly attractive. “This is what makes many investors from all walks of life interested in investing in bonds,” said Djoko. Bonds also provide regular coupon payments and the potential for capital gains.
- Gold: Gold continues to serve as a reliable hedge against market instability. Since the U.S. imposed trade tariffs, gold prices have climbed, reaching IDR 2 million per gram. “It seems quite a few people are getting into gold. But I think this gold has long been a familiar investment for Indonesians,” Djoko added.
Fixed Income Instruments Gaining Momentum
Investor demand for fixed income instruments has surged. DBS Indonesia reported an 18% year-on-year increase in investment assets under management (AUM) in the first quarter of 2025. This growth was fueled largely by fixed-income mutual funds that pay regular dividends and structured products combining deposits and derivatives.
“It turns out that these products are also in high demand. In fact, we’ve seen growth of more than double compared to the previous year in terms of structured product sales,” Djoko said. The bank now offers options in both local and offshore markets, including sharia-compliant bonds.
Who Benefits from These Investment Choices?
Low-risk investment options serve a broad range of investors. From cautious retirees to young professionals new to investing, these products offer peace of mind and long-term value. Because they are less affected by market swings, they are especially suitable for those focused on wealth preservation rather than aggressive growth.
DBS Indonesia noted that bonds, in particular, are appealing to both senior and younger clients. Their low risk and reliable returns make them an entry point for those just starting their investment journey.
A Smart Path in Uncertain Times
As market uncertainty continues, low-risk investment options remain a reliable choice for preserving and gradually growing wealth. Products like deposits, bonds, and gold help investors navigate financial volatility with confidence.
“Opportunities always exist, and currently, many investors are turning to products that offer relatively stable income, like bonds,” Djoko concluded. For anyone seeking stability in today’s unpredictable market, these options are worth serious consideration.
Source: cnbcindonesia.com, money.kompas.com
Image: Getty Images
