FINANCIAL MANAGEMENT MODEL FOR FORMAL WORKERS IN INDONESIA

Abstract

Purpose of the study: This paper is intended to understand the investment pattern for formal workers in Indonesia. Thus, it is also aimed to provide a specific form of variable construction of productive financial management for workers. Methodology: This study followed qualitative research by emphasizing the active interaction of the subject and the object of researchers in the form of a discussion to determine the ideas or basic reference model of productive financial management, specifically and focus on each individual form in which the organization is located. The data were gathered using in-depth interviews with respondents in the category of civil servants, state-owned and private employees with lower, middle, and upper-level segregation of interests and reasons for making investment decisions. Main Findings: The findings showed that the investment decision making for formal sector workers are motivated by benefits and financial security in the future. Their investment decision also considers the income received by individuals in each type of institution. Lastly, technology contributes to change investors’ economic behaviour. The ease of getting information strengthens the motivation of formal sector workers in productive financial management.    Applications of this study: This study provides an investment decision model for formal workers that can be considered ways to enhance the individual understanding of investment. Novelty/Originality of this study: This study aims to contribute to this growing area of research by exploring investment patterns for formal workers then propose a financial management model for workers.