Jakarta, CNBC Indonesia – Past 2023, it seems that economic uncertainty will still haunt the world and Indonesia this year. So how do you prepare your financial management strategy for the future?
In the midst of sloping inflation in the United States (US), which could have an impact on softening the US Central Bank (The Federal Reserve) policy regarding interest rates, this could also be a positive signal in the Indonesian financial market. This is because Bank Indonesia interest rate movements tend to follow the Fed.
However, the Indonesian Minister of Finance, Sri Mulyani, reminded again that even though there were signals of the Fed cutting interest rates, interest rates are expected to remain high for a long period of time (higher for longer).
Apart from the interest rate problem, the second largest economy in the world, namely China, is estimated to still be hit by a number of problems. For example, the property crisis, declining consumer confidence and the consumption of Chinese citizens make it difficult for Panda Country to recover from adversity.
China's economic slowdown could certainly be a big problem for Indonesia. Former Indonesian Minister of Finance, Chatib Basri, revealed that every time the Chinese economy slows down or weakens by 1%, it will have a slowing impact of up to 0.3% on the Indonesian economy.
Apart from the issues between these two big countries, on February 14 Indonesia will certainly have a new president this year. The presidential election (pilpres) will be held on February 14 2024.
The existence of elections tends to make investors choose wait and see. It is estimated that investment will only increase after the winner of the presidential election is known, and this could also have an impact on the Indonesian stock market and future investment decisions.
If there is no majority winner, the second round of presidential elections will be held on June 26.
So what resolutions do you have to improve your personal finances in 2024? The following is the explanation.
Stay wise in credit matters
In personal financial management, lowering interest rates can certainly have an impact in terms of consumption, business and investment. This will certainly ease the financial burden for those who intend to apply for consumer or productive credit.
Interest from home ownership credit (KPR), credit cards, business credit and others will of course be greatly impacted by this policy.
It is very important for you to make careful comparisons and calculations regarding the interest burden you will bear before you make a choice.
This doesn't mean that with interest rates still high, everything has to be postponed. What is a priority this year can still be achieved with good financial management.
Try to keep the amount of debt installments below 30% of income, and the amount of debt below 50% of total assets.
Maintain income
News about layoffs (PHK) appears to be circulating in the mass media and social media.
To name a few, the most recent was the layoff of thousands of workers at Semarang textile factories. And it shows that There are 10 factories that will carry out layoffs in 2023, causing a total of more than 12,000 employees to lose their jobs this year.
This figure only records layoffs carried out by factories whose members are unions belonging to the Confederation of Indonesian Workers' Unions (KSPN).
There is an attitude wait and see in the election era also has the potential to create uncertainty in the Indonesian labor market.
For those of you who really intend to upgrade your career this year, it is very important to pay attention to the fundamental conditions of the company you are targeting as a new place of work.
Meanwhile, for those of you who have not succeeded in recovering your financial condition from Covid-19 or the recent economic storm, there is no harm in focusing on your income or side business to maintain the availability of your income in the future.
Stay protected
Recently, Ministry of Health records state that active Covid-19 cases for the period 6-19 December totaled 2,548 cases and weekly cases increased by 243%.
On the other hand, currently a new variant of the corona virus has emerged with variant JN.1 which is a sublineage of BA.2.86 in Indonesia. The World Health Organization previously classified Covid JN.1 as a variant of interest but the risk is low.
Not only Covid 19, the world is now also preparing itself for all new outbreaks in the world of health.
Based on reports from the South China Morning Post (4/12/2023), projections from the Center for Global Development think tank show that there is a 57% chance of another Covid-sized pandemic occurring in the next 25 years.
Meanwhile, the Pandemic Research Alliance also discussed the spike in infections among children caused by Mycoplasma pneumoniae and assured the public that this condition is easy to treat.
When we are exposed to the virus, our activities can stop, not to mention the financial burden that must be borne due to treatment.
Prevention is indeed better than cure, but what is no less important is protecting your finances from all existing financial risks.
It is very important to review the health coverage we currently have, and if there are plans to add to private health insurance, then purchase products from companies that have good financial health and reputation.
2024, what investment?
The Composite Stock Price Index (IHSG) in the last trading of 2023, Friday (29/12/2023) closed at 7,272.79 with a gain throughout 2023 of 6.16% and had set a record high in trading on Thursday (29/12/2023) by touching the position of 7,303.88.
Historically, the performance of the Composite Stock Price Index (IHSG) has tended to be positive during the last few editions of the election. IDX data also shows that investors continued to make net purchases during the political year. Market capitalization also increased even though there was a presidential election.
For those who are involved in stocks, it is very important to pay attention to sectors that are predicted to grow due to domestic encouragement from the effects of the election year, or sectors that will be boosted by global sentiment.
This sector comes from commodities, but not oil or coal, but gold.
As is known, throughout 2023 the price of gold on the spot market will increase by 17.06% when it touched the highest level throughout 2023 on December 4 2023 at US$2,135.4 per troy ounce. Gold that continues to shine is certainly still suitable for long-term investment.
However, what is no less important than all this is to properly understand the risks and objectives of your initial investment in shares. Trading or investing?
For investors with a conservative risk profile, government securities (SBN) can certainly be an investment solution for both the short and long term according to the tenor. Purchasing SBN in the secondary market is also easier because there are assistance features from various trading applications belonging to securities companies and mutual fund sales agents.
Apart from that, it is also important to maintain the availability of cold cash that you have.
Keep appreciating yourself
Adopting a frugal lifestyle can certainly help you maintain the availability of savings and emergency funds. Do it if you don't have both at all.
However, that doesn't mean you can completely stop doing the things you like. You can still plan a vacation with your family or buy the things you want through good financial planning.
Plan these activities well in advance so that your finances are not disrupted. And put what is a priority first.
Know that self-reward activities are also something that all of you need. By taking a short break from activities, you will be able to restore your energy and find new inspiration to improve your financial condition in the future.
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