Indonesian habits that seem cool but actually cause poverty

Since childhood, we are taught to cultivate the habit of saving. Saving is indeed part of financial planning. However, seasoned investor Lo Kheng Hong does not share this view. The ‘Warren Buffett of Indonesia’ believes that keeping money in banks will gradually make investors poor. ‘Storing money in banks actually makes us poor over time as the value of our money decreases daily,’ Lo Kheng Hong said while speaking at the Capital Market Summit & Expo (CMSE), reported on Saturday, 30 May 2026. Furthermore, Lo Kheng Hong avoids purchasing bonds or government securities, as he considers the interest rates too low. ‘I also do not buy gold,’ he added. Lo Kheng Hong is solely interested in buying shares, which have proven to make him wealthy with hundreds of billions in assets. Who would have thought, he once made significant gains from PT United Tractors Tbk. (UNTR) shares, marking the start of his substantial profits from stock investments. He explained the primary reason for his investment in Indonesian stocks. ‘The Indonesian stock market offers the highest returns among major global stock markets for long-term investors. It has been proven! I am grateful to be part of it,’ Lo Kheng Hong said. According to Lo, almost 99% of Indonesians do not believe that stock investment is the best option. People prefer placing their money in banks or property rather than buying shares. Lo Kheng Hong is meticulous, spending considerable time reading financial reports. His efforts in analysing financial statements show he does not choose stocks haphazardly for investment. In 1998, Lo Kheng Hong bought UNTR shares. At that time, UNTR reported a net loss of Rp 1 trillion. However, the company’s revenue was around Rp 2-4 trillion with an operating profit of approximately Rp 1 trillion. Lo attributed the net loss to exchange rate fluctuations. This marked the beginning of Lo Kheng Hong’s success as a stock investor. Similar stories repeated with other stocks. For PT Indah Kiat Pulp & Paper Tbk. (INKP), he bought shares at Rp 1,000 each and sold them at an average of Rp 10,000 each. From INKP shares, he turned Rp 35 billion into Rp 350 billion within 1.5 years. He achieved gains of up to 5,900% from UNTR and 900% from INKP. According to Lo, a key to success as a stock investor is controlling emotions.