JAKARTA – Banking stocks largely saw gains in trading today, Tuesday, September 17, 2025, following Bank Indonesia’s decision to again cut its benchmark interest rate, the BI Rate, to 4.75%. This decision was made during the Board of Governors’ Meeting (RDG BI) for the period of September 16-17, 2025.
Bank Stocks Rally Following BI Rate Cut
Leading the charge was PT Bank Tabungan Negara (Persero) Tbk. (BBTN), which experienced the highest increase, jumping 3.35%, or 45 points, to Rp1,385 per share. This represents a year-to-date (YtD) increase of 21.93%, or 250 points.
Other major banks also saw positive movement. PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI) rose 2.18%, or 90 points, to Rp4,220 per share, a YtD increase of 3.43%, or 140 points. Similarly, PT Bank Negara Indonesia (Persero) Tbk. (BBNI) strengthened by 1.83%, or 80 points, to Rp4,450 per share, with a YtD increase of 2.30%, or 100 points.
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PT Bank Mandiri (Persero) Tbk. (BMRI) also benefited from the positive sentiment, climbing 0.67%, or 30 points, to Rp4,510 per share. However, it is still down 20.88% (YtD) or 1,190 points. PT Bank Syariah Indonesia Tbk. (BRIS) saw a slight increase of 0.38%, or 10 points, to Rp2,650 per share, but is down 2.93% (YtD) or 80 points.
Not all banks participated in the rally. PT Bank Central Asia Tbk. (BBCA) actually fell 0.95%, or 75 points, to Rp7,825 per share, correcting by 18.86% (YtD) or 1,825 points. PT Bank CIMB Niaga Tbk. (BNGA) closed unchanged at Rp1,725 per share, a slight decrease of 0.29% (YtD) or 5 points.
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Market Analysts Weigh In on the Rate Cut Impact
Nafan Aji Gusta, Senior Investment Information at Mirae Asset Sekuritas, believes this strengthening is a positive market response to the total reduction of the BI interest rate by 125 basis points throughout the year.
“The potential reduction of borrowing cost effect could be increasingly felt in the future. This could be a positive catalyst for increasing banking credit growth with good quality, while also suppressing the increase in non-performing loans,” Nafan told Bisnis on Tuesday.
He added that this prospect could also encourage a more optimal banking net interest margin.
“Moreover, technically, foreign funds have started to enter, and the foreign net sell trend has subsided. Many banking stocks are cheap with attractive dividend yields that are now being accumulated by investors,” he concluded.
BI’s Perspective on the Rate Cut
BI Governor Perry Warjiyo stated that the interest rate decision aligns with the low inflation forecasts for 2025 and 2026, which remain controlled within the target of 2.5±1%.
“This decision is in line with joint efforts to encourage economic growth by maintaining low inflation forecasts for 2025 and 2026 within the target of 2.5±1% and maintaining the stability of the rupiah exchange rate in accordance with its fundamentals,” said Perry.
Perry also explained that going forward, BI will continue to monitor the prospects for economic growth and inflation in utilizing the space for lowering the BI Rate while considering the stability of the rupiah exchange rate.
Summary
Bank Indonesia cut its benchmark interest rate (BI Rate) to 4.75% on September 17, 2025, during its Board of Governors’ Meeting. This decision prompted a rally in most Indonesian banking stocks, with PT Bank Tabungan Negara (BBTN) experiencing the highest increase. Other major banks like PT Bank Rakyat Indonesia (BBRI) and PT Bank Negara Indonesia (BBNI) also saw positive movements, though not all banks participated in the surge.
Market analysts believe this rate reduction, a cumulative 125 basis points throughout the year, is a positive catalyst for banking credit growth and improved loan quality. Bank Indonesia Governor Perry Warjiyo explained that the decision aligns with low inflation forecasts for 2025-2026. The central bank aims to encourage economic growth and maintain rupiah exchange rate stability through this measure.