The Influence of Financial Inclusion, Digital Financial Literacy, and Risk Perception on Investment Decisions in Generation Z

This study aims to analyze the influence of financial inclusion, digital financial literacy, and risk perception on investment decisions in Generation Z in Greater Jakarta. The background of the research is based on the increasing number of young investors in the Indonesian capital market, but there is still a gap between access to finance, digital-financial capabilities, and the quality of investment decisions. This study uses a quantitative approach with purposive sampling techniques. The respondents of the study were 244 Generation Z aged 18-29 years old who were domiciled in Greater Jakarta, had experience investing in the capital market, and used financial or digital investment applications. The data was analyzed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) with the help of SmartPLS. The results of the study show that financial inclusion has a positive and significant effect on investment decisions. Digital financial literacy also has a positive and significant effect on investment decisions. In addition, risk perception has been proven to have a positive and significant effect on investment decisions. The R-square value of 0.652 shows that the three variables are able to explain 65.2% of the variation in investment decisions. These findings confirm that Generation Z's investment decisions are influenced by the ease of access to finance, the ability to understand digital financial services, and the ability to evaluate investment risks.