Renowned Indonesian investor Lo Kheng Hong believes that the saving habits of Indonesians are not good practices.

In his view, instead of making people wealthy and prosperous in the future, the habit of saving could actually lead to hardship in old age.

He argues that saving or keeping money in banks gradually erodes one’s wealth since the value of money continuously declines due to inflation.

“Depositing money in banks essentially makes us poorer over time, because its value keeps decreasing,” Lo Kheng Hong said when speaking at the Capital Market Summit & Expo (CMSE) recently, quoted on Friday (September 5, 2025).

Beyond criticizing saving, Lo Kheng Hong also regards purchasing bonds or debt securities as an unattractive option for financial management, since the interest earned from bonds is relatively small.

“I don’t buy gold either,” added Lo Kheng Hong.

The only investment instrument he truly favors is stocks, which have proven to bring him significant wealth, amounting to hundreds of billions of rupiah. One of his major successes came from shares of PT United Tractors Tbk (UNTR), which became the starting point of his big wins in stock investments.

He revealed his main reason for investing in stocks, particularly in Indonesia. “The Indonesian stock market offers the highest returns compared to other major global exchanges for long-term investors. It has been proven! I’m grateful to be a part of it,” said Lo Kheng Hong.

Even so, he noted that nearly 99% of Indonesians still do not believe that stock investment is the best choice. Most people prefer to keep their money in banks or buy property rather than investing in equities.

Lo Kheng Hong is well-known for his meticulousness, often spending long hours reading financial statements. His diligence in studying company reports shows his cautious and deliberate approach to stock selection.

In 1998, he purchased shares of PT United Tractors Tbk (UNTR). At that time, the company recorded a net loss of Rp1 trillion. However, revenues were still in the range of Rp2–4 trillion, with operating profits around Rp1 trillion. Lo assessed that the net loss was largely due to currency exchange factors.

This marked the early turning point in his success story as a stock investor. Similar experiences later repeated with other stocks, further strengthening his journey toward great financial gains.