Fitch Ratings Downgrades Outlook for Four Indonesian Banks

The debt rating agency Fitch Ratings has downgraded the outlook or credit rating projection for four major banks in Indonesia. The four banks are Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Central Asia (BCA), and Bank Negara Indonesia (BNI).

Nevertheless, Fitch Ratings has maintained the credit ratings of the four banks at the BBB level. This outlook downgrade is in line with the revision of Indonesia’s debt outlook from stable to negative in March 2026.

Fitch states that the revision of Indonesia’s debt outlook reflects increasing policy uncertainty with potential implications for the medium-term fiscal direction and external buffers. Additionally, Fitch says that the prolonged Iran conflict also poses downside risks if higher global energy prices burden debtors’ ability to repay debt.

“However, the main performance metrics of the banking system remain healthy, with adequate loan loss reserves and strong capitalisation providing sufficient buffers to absorb potential weaknesses in our base case scenario,” Fitch wrote in its announcement, quoted on Thursday, 23 April 2026.

Separately, the Kiwoom Sekuritas Indonesia Research Team said that foreign investors have been actively selling shares of the four banks over the past three months. Kiwoom Sekuritas noted that foreign investors’ net selling accumulation for BBCA reached Rp 22 trillion; BBRI Rp 5.4 trillion; BMRI Rp 3.6 trillion; and BBNI Rp 2.7 trillion.

“Our concern is the weakening rupiah, the BI reference interest rate has already fallen, and the banks will find it difficult to pursue net interest income (NII) growth this year,” the Kiwoom Sekuritas research team wrote in its statement, quoted on Thursday, 23 April 2026.