Asset Diversification Key to Facing Global Economic Uncertainty

Amid global economic uncertainty and pressure on the rupiah exchange rate, asset diversification is considered a crucial step to maintain household financial stability, particularly for upper-middle-class and high-net-worth (HNW) individuals. Although the Indonesian economy continues to show positive performance, various external risks are seen as potentially affecting the public’s long-term financial planning. Indonesia’s economic growth in the first quarter of 2026 was recorded at 5.61 percent year-on-year, supported by strong household consumption, increased investment, accelerated government spending, and a recovery in the manufacturing sector. Furthermore, inflation remains under control at around 3 percent, the trade balance surplus continues, foreign exchange reserves are maintained, and the unemployment rate shows a downward trend. The government is also continuing to encourage investment and industrial downstreaming to maintain economic growth momentum. However, challenges still loom. Global geopolitical tensions, a slowing world economy, commodity price volatility, and pressure on the rupiah exchange rate are seen as potentially increasing risks to national economic stability. These conditions are encouraging the public to be more careful in managing assets and investments. Certified Financial Planner (CFP) at Prudential Indonesia, Priskilla Fachruddin, said an internal survey of upper-middle segment and HNW clients showed concerns about the ability to preserve wealth value amid the rupiah’s weakening. “As many as 75 percent of respondents are worried that the rupiah will continue to weaken, potentially eroding the value of their current assets,” Priskilla said in a written statement. According to her, the majority of respondents also consider it important to hold assets in foreign currencies as part of a wealth protection strategy. Sixty-nine percent of respondents consider holding foreign currency-based assets important to support long-term financial security. Additionally, 64 percent of respondents view the US dollar as more stable than the rupiah, while 56 percent said the currency provides a greater sense of security in preserving asset value. Priskilla explained that in uncertain economic conditions, the public needs to strengthen their financial foundation through adequate liquidity and long-term protection. “The first step is to strengthen emergency funds by ensuring living expenses for the next nine to 12 months are available. Regular obligations should also be placed in stable and easily liquidated instruments,” she said. She added that long-term financial protection also needs to be evaluated regularly to remain relevant to family needs and changing economic conditions. In addition to strengthening emergency funds, diversifying investment portfolios is considered a strategy worth considering. According to Priskilla, people can start allocating a portion of their assets to global-based instruments or foreign currencies such as the US dollar. “It is important to diversify portfolios, including considering exposure to foreign currencies like the USD or global investment assets. This way, risk is not dependent on a single currency or a single source of investment returns,” she said. This strategy, Priskilla continued, can help maintain the future purchasing power of family wealth while ensuring fund readiness for various globally oriented needs, such as overseas education, international healthcare services, and cross-generational inheritance planning. In line with these needs, Prudential Indonesia provides various diversification-based investment options, including through its PRUFuture life insurance product, which offers protection benefits in USD to help reduce the risk of currency mismatch between assets, liabilities, and customers’ long-term financial goals.