Pluang Simulation Reveals Capital Needed for Financial Freedom

Achieving financial freedom requires a portfolio of varying size for each individual. This need depends heavily on monthly expenditure levels and the rate of return on productive assets owned. Calculations from a Pluang simulation show that spending of Rp 5 million per month requires a portfolio of around Rp 1.2 billion. This figure is calculated using an assumed dividend yield of 5% per year, as reported by Investor Daily. Meanwhile, the required portfolio swells to Rp 2.4 billion for a spending level of Rp 10 million per month. The calculation still refers to the same rate of return.

A large investment value is not the only indicator of financial freedom. Pluang emphasises that there are three main foundations that must be met: ownership of productive assets, freedom from consumer debt, and the availability of an emergency fund. Productive assets function as generators of regular cash flow, not merely recording value movements on paper. Their presence is the main support for financing living needs without relying on an active salary. High-interest consumer debt must be settled because it risks eroding investment returns. On the other hand, an emergency fund acts as a liquidity cushion so that investors are not forced to sell long-term assets when the market is under pressure.

The reference for calculating capital requirements refers to the expenditure standards of Statistics Indonesia (BPS). BPS defines the middle-class group as having an expenditure range of 3.5 to 17 times the poverty line. Based on the BPS release of 5 August 2026, the poverty line as of March 2026 was recorded at Rp 669,235 per person per month. This means the middle-class expenditure range is between Rp 2.34 million and Rp 11.38 million per individual per month.

The public can determine their portfolio target independently. The simple formula is to multiply monthly expenditure by 12, then divide it by the expected rate of return. To pursue a 5% return, investors can look at the IDX High Dividend 20 index on the Indonesia Stock Exchange (IDX). This index includes 20 companies that regularly distribute cash dividends with an average historical dividend yield of 5% to 7% per year. Another option is Government Securities (SBN), which in 2026 offered issuances in the range of 5.45% to 7%. The ORI030 issuance in July 2026 even recorded the highest coupon in eight years, with a net yield of around 4.91% to 6.3% after a final tax of 10%.