Survival Mode Investing: Focus on Liquidity, Not High Returns, Expert\nSays<\/p>\n
Jakarta. Indonesia\u2019s economic slowdown and rising living costs are\nforcing many households into \u201csurvival mode,\u201d where preserving cash and\nfinancial stability matters more than chasing high investment returns,\naccording to financial planner Mike Rini.<\/p>\n
\u201cAs long as we are in survival mode, the first thing people must\nensure is the adequacy of their emergency fund. The second is\nmaintaining liquidity,\u201d said Mike Rini, founder and chief executive of\nMitra Rencana Edukasi.<\/p>\n
She said the current environment \u2013 marked by weaker purchasing power,\ninflationary pressure, and income uncertainty \u2013 has increased the risk\nof financial vulnerability for many Indonesians. Indonesia\u2019s annual\ninflation stood at 2.42% in April 2026, according to data from the\nCentral Statistics Agency (BPS).<\/p>\n
Mike explained that survival mode typically occurs when the risk of\njob loss rises or income becomes unstable, while essential expenses\nremain unavoidable. In such conditions, people need a stronger financial\ncushion before thinking about wealth accumulation. Data from the\nManpower Ministry showed that 15,425 workers were laid off between\nJanuary and April 2026.<\/p>\n
Mike added that emergency savings should become the main financial\npriority. However, building such reserves still requires disciplined\nsaving and carefully managed investment strategies.<\/p>\n
\u201cInvestment at this stage is not about speculation, but about\nensuring emergency funds are built and liquidity is maintained,\u201d she\nsaid.<\/p>\n
Mike advised people to avoid highly volatile or high-risk investment\ninstruments during periods of economic uncertainty. Instead, he\nrecommended safer and more liquid assets that can be easily accessed\nwhen needed.<\/p>\n
She pointed to savings accounts, time deposits, money market mutual\nfunds, and government bonds as more suitable instruments for maintaining\nfinancial stability.<\/p>\n
Beyond emergency funds, Mike also stressed the importance of\nprotecting purchasing power amid the rupiah\u2019s weakness and persistent\ninflation pressure. Rupiah weakened 43 points, or 0.24%, to Rp 17,843\nper US dollar as of 2:00 P.M Jakarta time.<\/p>\n
A weaker rupiah could push up the prices of daily necessities, making\nit necessary for households to allocate part of their assets into\ninstruments that can preserve value.<\/p>\n
\u201cIn conditions like this, part of the allocation can be directed to\ngold as a hedge against inflation and rupiah depreciation,\u201d she\nsaid.<\/p>\n
Mike said investment strategies during difficult economic periods\nshould focus on three priorities: securing emergency funds, maintaining\nasset liquidity, and protecting wealth from inflation.<\/p>\n
Bank Indonesia\u2019s Consumer Confidence Index stood at 123.0 in April,\nslightly higher than 122.9 in the previous month, indicating that\nconsumer sentiment remained in optimistic territory despite ongoing\neconomic pressures.<\/p>\n
Mike said that the goal of investing in such periods should not be\naggressive growth, but rather short- to medium-term financial resilience\nand stability. With that approach, households are expected to maintain a\nfinancial safety buffer while waiting for economic conditions to\nstabilize before returning to more aggressive investment strategies.<\/p>\n
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