THE ROLE OF FINANCIAL LITERACY, RISK PERCEPTION AND MOTIVATION ON MILLENNIAL GENERATION IN BATAM IN MAKING INVESTMENT DECISION

Abstract

Millennial investors dominate the investment market, including in Batam City, which is developing rapidly and needs millennials in the productive period to boost economic growth. However, the rising number of millennial investors in Batam is not in line with existing knowledge. This research seeks to determine how financial literacy, risk perception, and motivation affect Batam's millennials' investment decisions. In this quantitative study, 135 investors born between 1981 and 1996 were surveyed. A questionnaire measured financial knowledge, risk perception, and motivation, which affect investment decisions. The study found that financial literacy and risk perception influence millennials' investing decisions. Motivation doesn't influence investing decisions. These findings highlight the significance of financial education for the younger generation in increasing their involvement in the investing market. It is intended that this research will become a reference for policymakers and educational institutions in establishing initiatives that assist the millennial generation's investment.