From 488,550 customers to 1.43 million in just one year. That is the growth of Gen Z customers in Pegadaian's Gold Savings program as of May 2026—a remarkable 193% year-over-year increase, far outpacing the 71% growth recorded among millennials. If anyone still believes this generation only excels at online shopping and struggles to save money, the data tells a very different story.
However, there is one part of the story that rarely receives attention: a larger number of investors does not necessarily mean greater wealth. And that is exactly what Gen Z should understand before rushing to open an investment account.
A Surge in Investors, but Still Holding Small Assets
As of May 2026, Indonesia's Financial Services Authority (OJK) reported that the number of capital market investors had surpassed 28.1 million. More than 54% of them belong to Gen Z and Generation Alpha—people under the age of 30.
Meanwhile, data from the Indonesian Central Securities Depository (KSEI) showed that the total number of investors reached 27.75 million by the end of May, representing a 36% increase compared to the same period last year. Investor growth among younger generations alone reached approximately 79% since 2025. Similar trends can be seen across major provinces such as West Java, Central Java, and East Java, where investors aged below 40 account for over 70% of the local investor population.
Now comes the interesting part.
Although Gen Z represents more than half of all investors, they hold only around IDR 48.3 trillion in C-BEST assets—roughly 3.2% of Indonesia's total capital market assets during the same period.
The contrast is striking: more than half of the investor population controls less than one-twentieth of the market's wealth.
This is not a sign of failure. On the contrary, it reflects the financial reality of a generation that is only beginning its working life and generally earns lower incomes. What matters most is not how much wealth Gen Z owns today, but the habits they are building. If those habits remain consistent over the next decade, the long-term impact could be far greater than today's numbers suggest.
Why Mutual Funds and Gold Are the Top Choices
Gen Z's investment preferences are far from random. There is clear economic reasoning behind them.
A survey by Populix found that around 80% of Gen Z respondents consider gold their preferred investment instrument. This finding aligns with the rapid growth of Pegadaian's Gold Savings customers mentioned earlier.
The macroeconomic environment helps explain why. Indonesia's annual inflation rate reached 3.34% in June 2026, up from 3.08% in May, although it remained within Bank Indonesia's target range of 2.5% ±1%. At the same time, Bank Indonesia kept its benchmark interest rate at 5.75% in July 2026 after raising it by a total of 100 basis points since May.
Against the backdrop of persistent inflation, a relatively weak rupiah, and rising living costs, gold appears to many young investors as a safer store of value than simply holding cash whose purchasing power gradually declines.
Mutual funds—especially money market funds—have become the second most popular choice for different reasons. Many investment platforms allow investors to start with as little as IDR 10,000, making these products highly accessible. Compared with buying individual stocks, mutual funds also offer more diversified exposure and can easily be monitored through mobile applications.
Recognizing the importance of consistent investing habits, OJK introduced the PINTAR (Planned and Periodic Investment) program at the Indonesia Stock Exchange in April 2026. The initiative encourages investors to contribute regularly rather than making one-time investments and forgetting about them.
This reflects a broader understanding among regulators: increasing the number of investors is not enough if long-term investing discipline is absent.
Cryptocurrency remains part of some Gen Z portfolios, although its role appears to be more limited.
Indonesia's Commodity Futures Trading Regulatory Agency (Bappebti) reported that the country had more than 18 million crypto investors as of January 2026. Based on previous demographic data, over 60% of crypto users fall within the 18–30 age group—a trend that appears to be continuing.
Nevertheless, cryptocurrencies generally occupy a much smaller portion of Gen Z investment portfolios than gold or mutual funds, largely because their high volatility is less suitable for individuals who are still building their initial savings.
A Simple Simulation: The Cost of Waiting Five Years
Consider a simple example.
Suppose someone begins investing IDR 500,000 every month in a balanced mutual fund at the age of 22, assuming an average annual return of 7%. While historical returns never guarantee future performance, this assumption is broadly consistent with the long-term performance of similar investment products.
By age 40, the investor would have contributed approximately IDR 108 million.
Thanks to compound growth over 18 years, however, the portfolio's estimated value could reach around IDR 215 million.
Now compare that with someone who delays investing until age 27 while contributing the same monthly amount until age 40.
The second investor contributes only IDR 30 million less in total because they invest for 13 years instead of 18. Yet the portfolio's estimated value reaches only about IDR 127 million—almost IDR 90 million less than the first scenario.
Only about one-third of that difference comes from the additional contributions themselves.
The remaining gap is created simply by giving investments more time to compound.
This illustrates why waiting for a higher salary before investing is often a costly mistake for people in their twenties. A monthly investment of IDR 500,000 today can ultimately work harder than investing IDR 2 million five years later—not because of the amount invested, but because of the additional time available for compounding.
Risks That Should Not Be Ignored
Rapid investor growth also brings meaningful risks.
Opening an investment account with as little as IDR 10,000 has made investing more accessible than ever, but it has also encouraged some beginners to make decisions based on social media trends rather than a proper understanding of financial risk.
Investment scams continue targeting inexperienced investors who struggle to distinguish legitimate financial products from fraudulent schemes.
At the same time, many young investors have yet to establish solid financial foundations such as emergency savings, health insurance, and stable monthly cash flow before building investment portfolios.
Without these basics in place, investments may need to be liquidated during emergencies, undermining long-term financial goals.
The headline that "54% of Indonesia's investors belong to Gen Z" certainly sounds impressive.
But perhaps the more important question is not whether you have already become an investor.
Instead, ask yourself this:
Of the money you've already placed into your investment account or gold savings, for how many consecutive months have you consistently added to it?