Investing in the Future Workshop & Executive Presentation June - PowerPoint PPT Presentation

Investing in the Future Workshop & Executive Presentation June 2012 SEADI RFP No .003 Support to Bapepam-LK on its Socialization Program

Purpose 2 Assess Bapepam-LK ’ s Examine the target socialization efforts to audience’s financial promote broader literacy awareness of financial Proprietary markets Determine the role of education in increasing financial literacy SEADI is a joint project of the U.S. Agency for International Development and the Republic of Indonesia   

Process Methodology Designed and conducted research 3 Evaluated current practices against industry practices Presented findings at workshop with Bapepam-LK communications personnel Proprietary (cross-bureau) Outcome: Developed recommendations SEADI is a joint project of the U.S. Agency for International Development and the Republic of Indonesia   

Bapepam-LK ’ s Communications Role As consumers’ understanding increases, the intensity of regulation needed decreases 4 Regulation Socialization Bapepam-LK needs to Bapepam-LK has a increase public confidence responsibility to through strong regulation encourage savings and Proprietary and appropriate investing enforcement Market Credibility Financial Literacy SEADI is a joint project of the U.S. Agency for International Development and the Republic of    Indonesia

Clarifying Survey Terminology 5 SES A Households with more than IDR 3 million in monthly expenditures Adults in the ABC1 SES expenditure Random group (46% of urban population) Proprietary Potential People who intend on investing in a NBFI product within 5 years Active People currently investing in NBFI products SEADI is a joint project of the U.S. Agency for International Development and the Republic of    Indonesia

Process Methodology RANDOM and INVESTORS Survey results from 500+ ABC1 men and women in Surabaya and Jakarta 6 Three groups of respondents: Random Population; Active Investors; Potential Investors Four focus group discussions with active and potential investors (including students) SOCIAL/DIGITAL TRADITIONAL MEDIA Medan mall survey Proprietary MEDIA Interviewed Semarang mall survey Interviewed journalists financial planners Observed media Analyzed web briefings metrics Reviewed media coverage SEADI is a joint project of the U.S. Agency for International Development and the Republic of Indonesia   

Key Facts: Understanding the ABC1 Population Reasons for Savings & Investing 7 Emergencies 71% Childrens' education 64% Retirement 41% Concerned Make money 36% about security Income 28% and safety Medical expenses 20% Proprietary Buy a house 20% Go on Hajj 12% For holiday Not “get rich” 6% Buy a car schemes 6% For family upon death 2% SEADI is a joint project of the U.S. Agency for International Development and the Republic of Indonesia   

Key Facts: Understanding the ABC1 Population Mentioned in Top Three Factors for Investing 8 95% 89% 57% 31% 25% Proprietary 3% Safety Ease with Simple and High return Guaranteed Syariah which to get easy to return money back understand SEADI is a joint project of the U.S. Agency for International Development and the Republic of Indonesia   

Key Facts: Investment Ladder Progression of Investing (Investors) 9 Bank savings account Pension fund (through work) Gold/ jewelry Real Estate/ property Life-insurance Proprietary Other insurance Insurance (Unit linked) Education insurance Bank deposit account Car insurance SEADI is a joint project of the U.S. Agency for International Development and the Republic of Indonesia   

Key Facts: Proposed Target Audiences SES BC1 adults 10 SES A adults Students Proprietary Target both SES A men and women over the age of 25 who are college educated and live in urban areas, due to their high media usage and increased potential to invest Target students of ages 12 to 25 due to their higher risk tolerance and accessibility SEADI is a joint project of the U.S. Agency for International Development and the Republic of Indonesia   

Demographics of Target Audience target (%) compared to population Access to internet at home 45% 11 Smartphone owners 56% Regular newspaper readers 80% Married 82% Monthly income exceeding IDR 3 million 73% Proprietary Home owners 58% Car owners 48% Better educated 56% Between 31 – 40 years old 43% SEADI is a joint project of the U.S. Agency for International Development and the Republic of Indonesia   

Process Methodology Designed and conducted research 12 Evaluated current practices against industry practices Presented findings at workshop with Bapepam-LK communications personnel Proprietary (cross-bureau) Outcome: Developed recommendations SEADI is a joint project of the U.S. Agency for International Development and the Republic of Indonesia   

1. Increase Financial Literacy A. Provide information on basic financial topics Unaided Awareness of Percent Ownership of 13 Pension Funds in SES A Investments in Population 87% 17% Aware 51% Unaware 83% 15% 10% 7% Proprietary 6% 1% Unaided Awareness of Shares in SES A Aware 24% Unaware 76% SEADI is a joint project of the U.S. Agency for International Development and the Republic of Indonesia   

1. Increase Financial Literacy A. Provide information on basic financial topics Saving Behavior of Average Monthly Savings Population 14 IDR 670.000 Population Regularly IDR 1.250.000 Investors 40% Irregularly 60% Percent of Income Saved 45% Savings Behavior of 61% Proprietary Investors Regularly 29% 71% Population Investors Irregularly 10% or less More than 10% SEADI is a joint project of the U.S. Agency for International Development and the Republic of Indonesia   

1. Increase Financial Literacy A. Provide information on basic financial topics Too complicated 78% 15 Capital Market Risky/high potential for fraud 70% Don't know enough about it 46% Pension Funds Too complicated 35% Proprietary Don't know enough about it 78% Mutual Funds Too complicated 65% Too complicated 34% Insurance High potential for scams 32% Population Data SEADI is a joint project of the U.S. Agency for International Development and the Republic of Indonesia   

1. Increase Financial Literacy A. Provide information on basic financial topics 16 No need for paperwork 76% Gold Easy to understand 69% Good long-term investment 73% Real Estate Proprietary Make a lot of money 71% Allowed by religion 63% Syariah Bank Safe 26% Safe 80% Bank Account Convenient 77% Population Data SEADI is a joint project of the U.S. Agency for International Development and the Republic of Indonesia   

1. Increase Financial Literacy B. Reach out to students and young adults “ Bapepam-LK should “Include capital market and 17 educate about NBFI education in the investing and financial curriculum from elementary to planning from an early university levels.” age.” Bapepam-LK workshop Financial Planners participants Proprietary C. Tailor messages according to audience’s needs Beginning investors need different information than advanced investors SEADI is a joint project of the U.S. Agency for International Development and the Republic of Indonesia   

1. Increase Financial Literacy A. Provide information on basic financial topics Develop standard materials on: reducing risk, 18 saving money, taking out loans, NBFI products, and diversification B. Reach out to students and young adults Develop and distribute basic financial information to schools and colleges through road sessions, Proprietary presentations, and materials C. Tailor messages according to audience’s needs Develop relevant materials and messages for businesses, novice investors, and advanced investors SEADI is a joint project of the U.S. Agency for International Development and the Republic of Indonesia   

2. Leverage Socialization Efforts A. Establish PR division as “go - to” source of information, especially on non-technical topics 19 “The spokespersons’ “ The PR division is not authority was the main source for limited ” information or Journalists confirmation on Proprietary issues ” “ Spokespersons were Journalists not familiar with the topics ” Journalists SEADI is a joint project of the U.S. Agency for International Development and the Republic of Indonesia   

2. Leverage Socialization Efforts B. Develop One Voice “Rules of Engagement” 20 Divisions lack Press kits are not internal distributed during media coordination briefings Trained spokespersons deliver better and more consistent messages Proprietary Industry practices recommend establishing guidelines for engaging with the media One Channel One Voice SEADI is a joint project of the U.S. Agency for International Development and the Republic of Indonesia   