Indonesian State Banks Boost Shareholder Value with Interim Dividends

Strong Financial Performance Drives Dividend Distribution

Two of Indonesia's largest state-owned banks, Bank Mandiri and Bank Rakyat Indonesia (BRI), have announced significant interim dividend distributions to their shareholders, reflecting their robust financial performance and commitment to delivering shareholder value. The dividend payments demonstrate the banks' solid capital position and their ability to generate consistent returns while supporting national economic growth initiatives.

Bank Mandiri Dividend Distribution

Bank Mandiri distributed an interim dividend totaling Rp9.3 trillion ($598 million USD), equivalent to Rp100 per share, to shareholders recorded in the register on January 7, 2026 ¹

. The bank's management highlighted that this distribution was made possible by its solid financial fundamentals and maintained liquidity. Bank Mandiri's CEO, Riduan, emphasized that the interim dividend reflects the bank's consistent strategy of providing optimal returns to shareholders while maintaining its role as a strategic partner to the government in supporting national economic stability and growth.

BRI's Larger Dividend Payout

Bank Rakyat Indonesia (BRI) followed suit with an even larger interim dividend distribution of Rp20.6 trillion ($1.32 billion USD), or Rp137 per share, to shareholders recorded on January 2, 2026 ²

. The significant payout was well-received by the market, with BRI's stock (BBRI) surging 1.88% to Rp3,790 per share during morning trading on the Indonesia Stock Exchange. The dividend distribution included approximately Rp11 trillion being transferred to the Indonesian government as the majority shareholder, with the remainder distributed proportionally among public shareholders.

Financial Highlights Supporting Dividend Payments

Both banks' ability to distribute substantial interim dividends was underpinned by their strong financial performance. Bank Mandiri's financial results through November 2025 showed: total assets reaching Rp2,120 trillion, credit disbursement growing to Rp1,452 trillion, and third-party funds (DPK) amounting to Rp1,584 trillion. The bank maintained a healthy Loan-to-Deposit Ratio (LDR) of around 91%, indicating adequate liquidity and room for future business expansion.

BRI's financial performance through September 2025 demonstrated consolidated net profit attributable to the parent entity of Rp41.23 trillion, providing a solid foundation for the dividend distribution. The bank's corporate secretary, Dhanny, stated that the interim dividend reflects BRI's commitment to creating sustainable value for shareholders while supporting national economic development through strategic initiatives such as strengthening MSME financing and pursuing digital transformation.

Market and Economic Implications

The significant dividend distributions by these two major state-owned banks not only reward shareholders but also signal confidence in Indonesia's economic prospects. Both banks remain well-positioned to support national development goals through their robust financial positions and strategic business initiatives. The positive market reaction to BRI's dividend announcement, reflected in its stock price surge, underscores investor confidence in the bank's financial management and growth prospects.