Banking Stocks Surge as Foreign Investors Buy Up BBRI, BMRI, and BBCA

Jakarta – Banking stocks have once again taken center stage in the stock market, driven by strong foreign investor demand in recent days.

Data shows that foreign investors recorded a net buy of IDR 798 billion in PT Bank Rakyat Indonesia Tbk (BBRI), IDR 256 billion in PT Bank Mandiri Tbk (BMRI), and IDR 114 billion in PT Bank Central Asia Tbk (BBCA).

Stock market analyst and Founder of Stocknow.id, Hendra Wardana, stated that this surge in interest reflects strong confidence in the banking sector, supported by economic policies, solid financial performance, and positive sentiment from dividend payouts and stock buyback programs.

One of the key factors behind the banking stock rally is the Foreign Exchange Export Proceeds (DHE) policy, which requires exporters to keep 100% of their export revenues in Indonesia for 12 months.

"This policy could boost liquidity in the banking sector, providing additional capital for loan expansion. However, its full impact remains to be seen, particularly whether these funds will actually enter the banking system or be allocated to other financial instruments," Hendra told Liputan6.com on Wednesday (Feb 19, 2025).

Strong Fundamentals, Dividend & Buyback Plans Attract Investors

The banking sector continues to demonstrate robust financial performance, with stable loan growth in consumer and MSME segments.

As the dividend season approaches, bank stocks are increasingly attractive due to their high dividend yields. For example, BBRI plans to distribute 80-85% of its 2024 net profit as dividends, while BMRI and BBNI are also expected to increase their dividend payouts compared to the previous year.

"Additionally, stock buyback plans from major banks are further strengthening market sentiment, showcasing management confidence in their stock valuations," Hendra added.

With strong fundamentals, economic policy support, and a potential interest rate cut from Bank Indonesia, banking stocks remain a solid investment choice for 2025.

Analysts recommend BUY ratings for the following stocks:

• BBRI with a target price of IDR 4,200
• BMRI at IDR 5,750
• BBCA at IDR 10,500
• BBNI at IDR 6,800

New Regulation: Prabowo Mandates 100% of Export Proceeds Must Stay in Indonesia for One Year

President Prabowo Subianto has officially signed a new regulation concerning Foreign Exchange Export Proceeds (DHE) from natural resources (SDA). The policy requires exporters to keep 100% of their export proceeds in Indonesia for one year.

"For years, a significant portion of our export proceeds has been held in foreign banks. To maximize the impact of these funds on our economy, all foreign exchange earnings from natural resources must now be deposited in domestic bank accounts," Prabowo stated at a press conference at the State Palace on Monday (Feb 17, 2025).

Previously, only 30% of export proceeds were required to be kept domestically. However, under the new Government Regulation (PP) No. 8 of 2025, exporters must deposit 100% of their proceeds for at least 12 months.

This regulation applies to mining (excluding oil and gas), plantations, forestry, and fisheries. It will take effect starting March 1, 2025.

Prabowo expects this policy to add up to USD 80 billion in foreign exchange reserves in 2025 and surpass USD 100 billion by 2026.

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