UOB's Smart THR and Bonus Investment Strategy for the Middle Class

JAKARTA — PT Bank UOB Indonesia has advised the middle class to allocate Eid bonuses (THR) and bonuses expected in the coming months judiciously across a diversified portfolio.

Emillya Soesanto, Deposit, Wealth Management and Training Head at UOB Indonesia, explained that the public should recognise the existence of numerous asset classes available for investment in the current environment beyond traditional holdings such as gold and cash.

She then outlined a strategy for building a resilient middle class through a shift in investment mindset. Soesanto emphasised that investors must monitor which asset classes have potential for future appreciation.

“And the most important principle of investment is to buy low, sell high, not the other way around,” she said.

As an example, with gold prices currently experiencing significant increases, the public can consider alternative asset classes such as mutual funds invested in commodity stocks.

Soesanto advocated for dollar cost averaging—a strategy of purchasing assets such as stocks, mutual funds, and cryptocurrencies on a regular basis in fixed amounts, regardless of current market prices. “Indonesians typically like to be followers. So be careful, do not merely follow, but you must also understand and apply dollar cost averaging,” she explained.

Soesanto noted that individuals who employ dollar cost averaging and invest regularly achieve more optimal results compared to those who attempt to predict market movements or time the market. This approach includes identifying risks and potential returns.

She stated that UOB itself adopts a risk-first approach with its clients. This strategy means financial planning and investment that prioritises protecting the value of wealth before focusing on profit growth. Investors must identify their risk tolerance and potential returns as part of this approach.