Major Indonesian Bank Stocks, Including BBCA and BBRI, Pressure IHSG Today (Oct 22) After BI Rate Maintained
JAKARTA – The majority of Indonesian bank stocks closed in the red zone today, Wednesday (October 22, 2025), following Bank Indonesia’s (BI) decision to hold its benchmark interest rate, the BI Rate, at 4.75% during its October 2025 Board of Governors’ Meeting (RDG). This move by the central bank immediately reverberated through the stock market, leading to widespread declines in the banking sector.
Data from the Indonesia Stock Exchange (BEI) showed significant decreases in the shares of several prominent lenders. These included PT Bank Central Asia Tbk. (BBCA), PT Bank Mandiri (Persero) Tbk. (BMRI), PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI), PT Bank Negara Indonesia (Persero) Tbk. (BBNI), PT Bank Tabungan Negara (Persero) Tbk. (BBTN), and PT Bank Syariah Indonesia Tbk. (BRIS). The market’s reaction underscored investors’ sensitivity to the nation’s monetary policy.
Among these major banks, BBTN experienced the sharpest decline, plummeting 4.49% or 55 points to Rp1,170 per share. Despite this daily setback, BBTN shares still recorded a year-to-date (YtD) increase of 2.63%, or 30 points, indicating some resilience over a longer period. BBCA also saw a substantial drop of 3.24%, or 275 points, closing at Rp8,900 per share, contributing to a more significant YtD decrease of 15.25%, or 1,475 points. Meanwhile, Islamic bank BRIS dipped 1.87%, or 50 points, to Rp2,620 per share, with its YtD performance showing a 4.03% (110 points) decline.
Further impacting the Jakarta Composite Index (IHSG), BBRI shares fell by 1.60% or 60 points, settling at Rp3,700 per share, bringing its YtD loss to 9.31% (380 points). BBNI recorded a more modest decline of 0.49% or 20 points, closing at Rp4,030 per share, marking a 7.36% (320 points) fall YtD. Lastly, BMRI, identifiable by its iconic gold ribbon logo, registered a 0.46% or 20-point decrease today, reaching Rp4,330 per share. The bank’s YtD performance, however, revealed a substantial 24.04% (1,370 points) reduction, highlighting a challenging year for its stock.
According to Myrdal Gunarto, Global Markets Economist at Maybank Indonesia, the banking sector had seen a temporary surge on Tuesday (October 21, 2025). This earlier rally was fueled by market expectations of a potential BI Rate cut in October 2025. “However, the reality is that BI maintained the BI Rate at 4.75% to preserve monetary stability. That’s why we observed immediate profit-taking actions on bank stocks that had previously risen,” Myrdal explained to Bisnis on Wednesday (October 22, 2025).
Therefore, he posited that the decline in banking stocks during today’s trading session was intrinsically linked to market participants’ immediate response to BI’s decision to hold the BI Rate. Despite the current downturn, Myrdal maintains an optimistic outlook for banking stocks in the future. He emphasized the favorable current economic prospects under the leadership of Finance Minister Purbaya Yudhi Sadewa, alongside the strong coordination evident between the government, Bank Indonesia, and other regulatory bodies.
Moreover, Myrdal observed BI’s ongoing efforts to encourage banks to transmit the substantial cumulative BI Rate cuts – exceeding 100 basis points – to their lending and deposit rates. He noted that the transmission of these BI Rate reductions into lower lending and deposit rates by commercial banks is a key expectation.
“From the banking perspective, I believe it remains an attractive sector. Furthermore, the valuations of several banking issuers are still quite inexpensive. For instance, BBNI appears to be relatively appealing in my assessment,” he concluded, offering a specific recommendation to investors.
As widely known, Bank Indonesia officially decided to maintain the BI Rate at 4.75%. BI Governor Perry Warjiyo elaborated that this decision was made after carefully considering a range of global and domestic economic indicators, including the latest developments in credit growth within the banking sector. “This decision is consistent with our inflation forecasts for 2025-2026,” stated Perry on Wednesday (October 22, 2025). In line with this, the central bank also retained its Deposit Facility rate at 3.75% and its Lending Facility rate at 5.5%.
Disclaimer: This news article is not intended to solicit the buying or selling of shares. Investment decisions are solely at the discretion of the reader. Bisnis.com is not responsible for any losses or gains arising from readers’ investment decisions.
Summary
Major Indonesian bank stocks, including BBCA, BMRI, and BBRI, closed in the red zone on October 22, 2025, after Bank Indonesia (BI) maintained its benchmark interest rate at 4.75%. This decision, contrary to market expectations of a potential rate cut, led to widespread declines in the banking sector. PT Bank Tabungan Negara Tbk. (BBTN) experienced the sharpest drop, falling 4.49%, with PT Bank Central Asia Tbk. (BBCA) also seeing a significant 3.24% decrease. The market’s reaction highlighted investor sensitivity to the nation’s monetary policy.
According to Global Markets Economist Myrdal Gunarto, the decline was a direct result of BI holding the rate, prompting immediate profit-taking after an earlier rally based on rate-cut expectations. BI explained that the decision aimed to preserve monetary stability and align with 2025-2026 inflation forecasts. Despite the current downturn, Myrdal maintains an optimistic outlook for banking stocks, citing favorable economic prospects and the attractive valuations of several banking issuers, while also noting BI’s efforts to transmit past rate cuts to lending and deposit rates.