Foreign Funds Snap Up Indonesia’s Big Banks, Analysts Raise Targets for BBCA, BMRI, BBNI, and BBRI
Key Takeaways
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JAKARTA, Investortrust.id — Indonesia’s largest banks are back in the spotlight as foreign investors ramp up buying in Bank Central Asia, Bank Negara Indonesia, Bank Mandiri, and Bank Rakyat Indonesia. The move underscores renewed confidence in the country’s financial sector amid expectations of global rate cuts and steady domestic growth.
Data from the Indonesia Stock Exchange show that overseas investors bought a net Rp 1.1 trillion worth of BBCA shares in the past month, followed by Rp 413 billion in BBNI, Rp 318 billion in BMRI, and Rp 78 billion in BBRI.
According to Hendra Wardana, capital market analyst and Founder of Republik Investor, the surge in foreign inflows reflects both solid bank fundamentals and a supportive macro backdrop.
“Foreign investors view Indonesia’s banking sector as a defensive play supported by strong fundamentals, high liquidity, accelerating credit growth, and solid net interest margins despite lower funding costs,” Hendra told Investortrust.id on Friday, Nov. 7, 2025.
He added that easing global interest rate expectations in 2025 and Indonesia’s economic stability have created a sweet spot for large-cap lenders. While big bank shares have already climbed sharply this year, Hendra believes retail investors still have room to participate. “Foreign accumulation shows confidence in the medium-term outlook rather than short-term momentum,” he said.
Valuations remain a key draw. BBNI and BMRI, both trading at under two times price-to-book value, are seen as offering more upside than BBCA, which remains premium at above four times. BBRI, meanwhile, appeals to investors seeking stable dividends and long-term growth in micro and ultra-micro lending.
“BBCA continues to benefit from cost efficiency and its dominance in digital transactions, which bolster fee-based income,” Hendra noted. “BMRI is well-positioned for growth in corporate lending and government infrastructure projects—especially if fiscal stimulus in 2025 gains traction.”
BBNI is riding momentum from its ongoing digital transformation and expansion in productive loans, which are lifting profitability. BBRI, meanwhile, remains a cornerstone of Indonesia’s financial inclusion push through its ultra-micro segment led by Pegadaian and PNM.
Hendra set new price targets for the country’s top four banks: BBCA at Rp 11,000, BMRI at Rp 8,000, BBNI at Rp 6,400, and BBRI at Rp 6,000—all with “buy” recommendations.