Big Banks' Shares Surge After BI Maintains Interest Rate

Market Reaction to Monetary Policy Decision

Shares of Indonesia's major banks saw significant gains following Bank Indonesia's decision to maintain the benchmark interest rate at 4.75% in December 2025 ¹

. The banking sector experienced a notable uplift with PT Bank Central Asia (BBCA) leading the gains at 2.49% to Rp 8,225 per share ¹

Source 1

https://keuangan.kontan.co.id/news/saham-big-banks-menguat-usai-bi-tahan-bunga-acuan-di-level-rp-475

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Banking Sector Performance in 2025

Despite the banking sector's underperformance in 2025, with year-to-date declines ranging from 7.35% to 15.50% for major banks ²

, analysts see potential for a reversal in 2026. The 125 basis point reduction in BI Rate throughout 2025 is expected to positively impact banks' Net Interest Margin (NIM) as funding costs decrease faster than lending rates ²

Source 2

https://finansial.bisnis.com/read/20251218/90/1938010/saham-perbankan-tertinggal-di-tengah-penurunan-suku-bunga-peluang-reversal-menguat

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Analyst Insights and Market Outlook

Equity Analyst David Kurniawan from PT Indo Premier Sekuritas noted that the banking sector's underperformance creates a potential reversal opportunity, particularly as monetary easing continues into 2026 ²

. The significant weight of banking stocks in the Indonesian Composite Index (IHSG) makes their performance crucial for overall market movement ²

Source 2

https://finansial.bisnis.com/read/20251218/90/1938010/saham-perbankan-tertinggal-di-tengah-penurunan-suku-bunga-peluang-reversal-menguat

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Sector Rotation and Investment Trends

The decline in commodity prices is expected to drive investors towards defensive stocks, including banks, creating favorable conditions for sector rotation from commodity-based stocks to financial sector stocks ²

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