Despite daily corrections in individual sessions, banking stocks collectively demonstrated significant weekly strengthening, with Indonesia’s largest banks, often referred to as big banks, impressively outperforming the broader Jakarta Composite Index (IHSG).
At the close of trading on Friday, May 8, 2026, the IHSG settled at 6,968.4, marking a 2.86% decline for the day. Nevertheless, the index managed to eke out a modest 0.18% gain over the week, highlighting a resilience in certain sectors amidst broader market fluctuations.
Amidst the relatively constrained movement of the IHSG, banking stocks emerged as clear frontrunners, recording more substantial gains. PT Bank Rakyat Indonesia Tbk (BBRI) led the charge among the major lenders, with its shares climbing 9.03% over the week to reach Rp 3,260 per share.
Following suit, shares of PT Bank Central Asia Tbk (BBCA) posted a robust 5.56% increase for the week, closing at Rp 6,175. Similarly, PT Bank Mandiri Tbk (BMRI) saw its stock price rise 5.47% to Rp 4,630, showcasing broad strength across the sector’s stalwarts.
Meanwhile, PT Bank Negara Indonesia Tbk (BBNI) also contributed to the sector’s positive momentum, with its shares gaining 3.76% over the week to settle at Rp 3,860, further underscoring the renewed investor interest in financial institutions.
Ekky Topan, an Investment Analyst at Infovesta Utama, assessed that the current strengthening of banking stocks more accurately reflects a technical rebound rather than a complete trend reversal. He attributes this positive shift to a confluence of favorable market sentiments.
One key factor, according to Topan, is the recent decline in oil prices, which has helped to alleviate concerns over inflation and broader macroeconomic pressures. Additionally, the impending dividend payout season has reignited investor appetite, particularly for the stable and attractive offerings of the big banks.
Looking ahead, Ekky emphasized that the continued upward trajectory of banking stocks remains highly contingent on evolving market sentiment. Despite recent corrections, the valuation of several bank shares appears relatively inexpensive, creating a fertile ground for significant rebounds when positive catalysts emerge.
However, investors are advised to remain vigilant regarding several domestic risks that continue to cast a shadow over the banking sector. Chief among these are uncertainties surrounding the financing direction of government priority programs, such as MBG and Kopdes.
“These factors notably contribute to the pressure on foreign investors’ perception of the banking sector,” Ekky explained to Kontan on Friday, May 8, 2026, highlighting the delicate balance between opportunity and caution.
For stock selection, Ekky specifically endorsed BBNI. He noted that from a technical perspective, BBNI’s share price structure is showing clear signs of improvement, forming a “higher high” pattern that suggests further upward potential.
“Moreover, its valuation is relatively cheaper compared to other major banks,” Ekky added, providing a dual rationale for his recommendation.
Ekky projects a short to medium-term target price for BBNI shares in the range of Rp 4,300 to Rp 4,400. He recommends a “buy on weakness” strategy, advising investors to capitalize on dips as long as the current rebound momentum is sustained.
Summary
Indonesia’s big bank stocks demonstrated significant weekly strengthening, outperforming the Jakarta Composite Index (IHSG) which saw only a modest gain. Major lenders like BBRI, BBCA, BMRI, and BBNI recorded substantial share price increases. This robust performance is attributed to a technical rebound, fueled by lower oil prices alleviating inflation concerns and the impending dividend payout season boosting investor appetite.
An investment analyst suggests this strengthening is a technical rebound, noting that several bank valuations remain relatively inexpensive, offering rebound potential. However, domestic risks, particularly concerning government program financing, could still pressure foreign investor perception. BBNI is specifically recommended for its improving technical structure and cheaper valuation, with a “buy on weakness” strategy and a target price of Rp 4,300-Rp 4,400.