Flooring Guide by Cinvex JAKARTA — Renowned veteran investor Lo Kheng Hong is actively formulating his strategic stock investment moves for 2026, often referred to as the “Year of the Fire Horse.” The question on many investors’ minds is: Which specific stocks will capture the attention and capital of Lo Kheng Hong next year?
According to Lo, several key sentiments are poised to drive the Indonesian stock market forward in 2026. Among the most significant catalysts he identifies is the ongoing trend of declining central bank benchmark interest rates, a factor historically known to boost market sentiment and investment.
Bank Indonesia (BI) has already demonstrated this trend, having lowered its benchmark interest rate five times this year, bringing it to a low of 4.75%. This current rate stands as the lowest since October 2022. Looking ahead, BI is expected to have further scope for additional rate cuts next year, which could provide continued impetus for the market.
In line with these anticipated interest rate reductions, Lo Kheng Hong sees a compelling opportunity for investment in the banking sector’s stocks in 2026. This sector, he believes, is particularly well-positioned to benefit from a lower interest rate environment.
“There’s a plan to buy [stocks],” Lo remarked following the BIG 40 Award event on Monday, December 8, 2025, in Jakarta. He further elaborated on his preferences, stating, “I usually like the banking sector,” underscoring his long-standing affinity for the stability and growth potential within this industry.
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Within the banking sector, Lo Kheng Hong is specifically eyeing state-owned banks, collectively known as Himbara. His targets include prominent names such as PT Bank Rakyat Indonesia Tbk. (BBRI) and PT Bank Mandiri Tbk. (BMRI). He posits that Himbara stocks have historically received a significant boost from government stimulus and liquidity assistance, making them attractive prospects for future growth.
Beyond the banking sector, Lo Kheng Hong also views the mining and palm oil sectors as highly promising for 2026. Additionally, he highlighted that stocks offering high dividend yields are particularly appealing targets for his investment strategy, emphasizing consistent returns for shareholders.
“For example, Bank Mandiri’s dividend yield could reach 9%, while BRI’s might be 8%,” Lo explained, illustrating the substantial returns. He further emphasized the value proposition: “That’s more than double the bank interest rate. If bank deposits offer 5%, after tax, you’re left with just 4%. If dividends are 8%, it’s significantly higher.”
As this year draws to a close, Lo Kheng Hong maintains his prominent position on the list of major shareholders in numerous Indonesian issuers. His strategic acumen is evident as he continues to actively maneuver his stock investments, constantly optimizing his portfolio.
In the palm oil plantation sector, Lo Kheng Hong stands as the individual investor with the largest shareholding in the Salim Group’s issuer, PT Salim Ivomas Pratama Tbk. (SIMP). Data from PT Kustodian Sentral Efek Indonesia (KSEI) reveals that Lo Kheng Hong holds an impressive 779.20 million shares of SIMP, representing a substantial 5.03% ownership stake.
Furthermore, Lo Kheng Hong is also recognized as the individual investor with the largest ownership in the coal issuer PT ABM Investama Tbk. (ABMM). KSEI data indicates his holding in ABMM amounts to 154.01 million shares, equivalent to 5.59% of the company.
Adding to his diverse portfolio, Lo Kheng Hong holds a significant position in the property sector through PT Intiland Development Tbk. (DILD). He is recorded as holding 691.51 million shares of DILD, which translates to a 6.67% ownership stake.
Beyond these, Lo Kheng Hong also features on the list of major shareholders, holding over 5% ownership, in PT Global Mediacom Tbk. (BMTR) and PT Gajah Tunggal Tbk. (GJTL). His ownership stood at 5.76% in GJTL and 6.44% in BMTR at the close of the third quarter of 2025.
While known for his “jumbo” stock portfolios, Lo Kheng Hong also holds significant stakes in a range of other issuers, even if below the 5% threshold. An example is PT Bank Danamon Indonesia Tbk. (BDMN). Most recently, Lo Kheng Hong increased his shareholding in BDMN to 26.10 million shares, representing 0.26% of the company, securing his position as the fifth-largest shareholder in Bank Danamon Indonesia.
Disclaimer: This news article is not intended as an invitation to buy or sell stocks. Investment decisions are solely at the reader’s discretion. Bisnis.com is not responsible for any losses or gains arising from readers’ investment decisions.
Summary
Renowned investor Lo Kheng Hong is actively planning his stock investments for 2026, anticipating a positive impact from declining central bank interest rates. He identifies banking, mining, and palm oil as promising sectors for the coming year. Lo specifically favors state-owned banks like PT Bank Rakyat Indonesia Tbk. (BBRI) and PT Bank Mandiri Tbk. (BMRI), noting their potential for high dividend yields that significantly surpass typical bank deposit rates.
Lo Kheng Hong also maintains significant positions in various Indonesian issuers as this year concludes. His major holdings (over 5% ownership) include PT Salim Ivomas Pratama Tbk. (SIMP), PT ABM Investama Tbk. (ABMM), PT Intiland Development Tbk. (DILD), PT Global Mediacom Tbk. (BMTR), and PT Gajah Tunggal Tbk. (GJTL). Additionally, he recently increased his stake in PT Bank Danamon Indonesia Tbk. (BDMN), securing his place as its fifth-largest shareholder.