Flooring Guide by Cinvex – JAKARTA — As investors strategically plan for October 2025, BRI Danareksa Sekuritas forecasts that Indonesian banking stocks, alongside key commodity and telecommunication stocks, are particularly well-positioned to command significant investor interest. This optimistic outlook is predicated on a confluence of macroeconomic factors and specific sectoral developments poised to influence market dynamics.
Erindra Krisnawan and Wilastita Muthia Sofi, analysts at BRI Danareksa, emphasize the sustained appeal of the banking sector. Their analysis points to a noticeable improvement in liquidity conditions and a projected decrease in the cost of funds (CoF) by September 2025, which are expected to substantially bolster the profitability of financial institutions.
The positive sentiment surrounding banking stocks is further reinforced by a series of proactive governmental and financial authority policies. Key catalysts include recent reductions in the benchmark interest rate, a notable decline in the SRBI to 4.8%, a lowering of LPS deposit interest rates, and the strategic allocation of IDR 200 trillion in state-owned banks. These initiatives are designed to enhance market liquidity and stimulate lending, fostering a conducive environment for bank performance.
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While operational cost pressures have presented a temporary headwind for bank earnings, this situation is anticipated to be short-lived. Despite these temporary challenges, the banking sector maintains an attractive valuation, with a price to book value (PBV) of 1.9x and compelling dividend yields ranging from 1.5% to 9.7%. This combination underscores a highly favorable risk-reward ratio for potential investors.
“With improving liquidity dynamics and still attractive valuations, this sector undeniably offers a strong risk-reward proposition,” stated a recent research note from BRI Danareksa, dated Sunday, October 5, 2025.
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Within the banking sector, BRI Danareksa Sekuritas specifically highlights PT Bank Central Asia Tbk. (BBCA) as a top pick. The firm has set an ambitious target price of IDR 11,900 per share for BBCA, significantly above its current trading level of IDR 7,525, which reflects a 22.22% decline year to date (YtD). This bullish stance signals strong confidence in BBCA’s recovery potential and fundamental strength.
Beyond banking, the telecommunication sector is also drawing considerable attention. Despite facing temporary corrections in data yield prices, partly attributable to short-term promotional campaigns, BRI Danareksa views this as a strategic entry opportunity for astute investors targeting long-term growth. Their analysis points to PT Telkom Indonesia (Persero) Tbk. (TLKM) as an attractive investment, assigning it a target price of IDR 3,500.
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Analysts Erindra and Muthia further identify the metals sector as continually appealing, robustly supported by stable global prices for gold and other base metals. For investors seeking exposure in this segment, PT Vale Indonesia Tbk. (INCO) receives a “Buy” recommendation with a confident target price of IDR 4,700, reflecting optimism for its future performance.
Similarly, the coal sector is considered ripe for increased investor exposure. This assessment is driven by ongoing stabilization in coal prices and efficient inventory de-stocking processes. BRI Danareksa suggests that PT Adaro Andalan Indonesia Tbk. (AADI) stands out as a prime choice within this sector, with a compelling target price of IDR 9,850.
On a broader market scale, the Indonesia Stock Exchange Composite Index (IHSG) registered a 2.9% month-on-month (MoM) increase in September 2025. This uplift was primarily fueled by robust performances from conglomerate stocks and low-liquidity issuers, including BRPT and DSSA.
However, a cautionary note emerges from the persistent activity of foreign investors, who recorded net outflows totaling US$234 million from prominent stocks such as BBCA, BMRI, and BBNI. This significant capital movement underscores that a period of risk reduction remains ongoing within the Indonesian financial market.
Disclaimer: This news is not intended to encourage the buying or selling of stocks. Investment decisions are solely at the reader’s discretion. Bisnis.com is not responsible for any losses or gains arising from the reader’s investment decisions.
Summary
BRI Danareksa Sekuritas forecasts that Indonesian banking, commodity, and telecommunication stocks will attract significant investor interest in October 2025. The banking sector is particularly appealing due to anticipated improvements in liquidity, projected decreases in the cost of funds, and supportive government policies such as benchmark interest rate reductions. Despite some temporary operational cost pressures, the sector maintains an attractive valuation and a strong risk-reward proposition.
Within banking, PT Bank Central Asia Tbk. (BBCA) is highlighted as a top pick, while PT Telkom Indonesia (Persero) Tbk. (TLKM) is an attractive investment in telecommunications. The metals sector, with PT Vale Indonesia Tbk. (INCO), and the coal sector, with PT Adaro Andalan Indonesia Tbk. (AADI), are also recommended for increased investor exposure. While the IHSG recorded a 2.9% increase in September 2025, significant net outflows from foreign investors in major banking stocks indicate ongoing risk reduction in the market.