Bank Mandiri, BRI and BNI Shares Surge in August

Jakarta, CNBC Indonesia - Shares of major banks, particularly the state-owned Himbara group, began to show strength again in August 2026.

Banking stock performance had already been stirring since July 2026.

Shares of PT Bank Rakyat Indonesia (BBRI), PT Bank Mandiri (BMRI), and PT Bank Negara Indonesia (BBNI), which had previously been under significant pressure, began to recover as investors returned to hunt for bank stocks.

The rally was supported by many factors, ranging from cheap valuations, the return of foreign investors, domestic liquidity and easing interest rate uncertainty, as well as a more stable rupiah.

According to Refinitiv, BBRI shares surged 4.61% during the month (1-24 August 2026). This increase extended its positive trend, with BRI shares also soaring 11.36% in July 2026.

BNI shares jumped 4.25% during the month, extending the positive trend from July when they surged 11.71%.

Meanwhile, Bank Mandiri shares strengthened 0.24% during the month, after soaring 8.83% in July.

Foreign Investors Return to Buy Bank Stocks

One of the strongest signals came from foreign fund movements.

Throughout August 2026, foreign investors on the Indonesian stock exchange recorded a net buy of Rp 996.85 billion, while in July the figure reached Rp 1.61 trillion.

These fund flows signal that foreign investors are beginning to look again at the Indonesian stock market, especially bank stocks, after previously carrying out large-scale selling.

Throughout August, BBRI recorded a net buy of around Rp 1.4 trillion (all market), while BNI saw a net buy of Rp 177 billion. However, Bank Mandiri still recorded a net sell of Rp 731 billion.

The next factor is valuation. Large bank stocks had previously been under significant pressure. From the start of the year until the end of June 2026, Bank Mandiri shares corrected by around 24.5%, while BBRI fell 25.4% and BBNI 27.7%.

This correction ultimately made the valuations of several bank stocks more attractive. Investors began buying stocks deemed too cheap after experiencing sharp declines.

Interest Rates and the Rupiah Begin to Provide Fresh Air

Positive sentiment also came from Bank Indonesia. In August, BI maintained the BI Rate at 5.75%, after previously raising interest rates in May and June 2026.

The decision provided certainty to the market that pressure from interest rate hikes was beginning to ease. For banks, this condition is important because interest rates are closely linked to liquidity, cost of funds and credit disbursement prospects.

The smaller the chance of further interest rate hikes, the greater the room for investors to return to taking positions in bank stocks.

Rupiah stability is also an important factor.

For foreign investors, investing in the Indonesian stock market means facing two risks at once: share price movements and the exchange rate. A more stable rupiah lowers the risk of losses from currency fluctuations.

This condition ultimately increases the attractiveness of Indonesian assets in the eyes of global investors.

The rupiah exchange rate strengthened sharply by 1.6% during August after collapsing in the previous five months.

Interestingly, the rise in bank stocks in August did not depend solely on foreign investors.

Domestic liquidity began to absorb foreign selling pressure. Local investors became the support for prices when foreign investors had not yet fully returned.

This means the strengthening of bank stocks was the result of a combination of accumulation by domestic investors and the return of some foreign funds.