Survival Mode Investing: Focus on Liquidity, Not High Returns, Expert Says
Survival Mode Investing: Focus on Liquidity, Not High Returns, Expert Says
Jakarta. Indonesia’s economic slowdown and rising living costs are forcing many households into “survival mode,” where preserving cash and financial stability matters more than chasing high investment returns, according to financial planner Mike Rini.
“As long as we are in survival mode, the first thing people must ensure is the adequacy of their emergency fund. The second is maintaining liquidity,” said Mike Rini, founder and chief executive of Mitra Rencana Edukasi.
She said the current environment – marked by weaker purchasing power, inflationary pressure, and income uncertainty – has increased the risk of financial vulnerability for many Indonesians. Indonesia’s annual inflation stood at 2.42% in April 2026, according to data from the Central Statistics Agency (BPS).
Mike explained that survival mode typically occurs when the risk of job loss rises or income becomes unstable, while essential expenses remain unavoidable. In such conditions, people need a stronger financial cushion before thinking about wealth accumulation. Data from the Manpower Ministry showed that 15,425 workers were laid off between January and April 2026.
Mike added that emergency savings should become the main financial priority. However, building such reserves still requires disciplined saving and carefully managed investment strategies.
“Investment at this stage is not about speculation, but about ensuring emergency funds are built and liquidity is maintained,” she said.
Mike advised people to avoid highly volatile or high-risk investment instruments during periods of economic uncertainty. Instead, he recommended safer and more liquid assets that can be easily accessed when needed.
She pointed to savings accounts, time deposits, money market mutual funds, and government bonds as more suitable instruments for maintaining financial stability.
Beyond emergency funds, Mike also stressed the importance of protecting purchasing power amid the rupiah’s weakness and persistent inflation pressure. Rupiah weakened 43 points, or 0.24%, to Rp 17,843 per US dollar as of 2:00 P.M Jakarta time.
A weaker rupiah could push up the prices of daily necessities, making it necessary for households to allocate part of their assets into instruments that can preserve value.
“In conditions like this, part of the allocation can be directed to gold as a hedge against inflation and rupiah depreciation,” she said.
Mike said investment strategies during difficult economic periods should focus on three priorities: securing emergency funds, maintaining asset liquidity, and protecting wealth from inflation.
Bank Indonesia’s Consumer Confidence Index stood at 123.0 in April, slightly higher than 122.9 in the previous month, indicating that consumer sentiment remained in optimistic territory despite ongoing economic pressures.
Mike said that the goal of investing in such periods should not be aggressive growth, but rather short- to medium-term financial resilience and stability. With that approach, households are expected to maintain a financial safety buffer while waiting for economic conditions to stabilize before returning to more aggressive investment strategies.
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