Lo Kheng Hong Proves Profits in State-Owned Bank Stocks, BBRI the Strongest
Jakarta, CNBC Indonesia - The Indonesian stock market remains unrecovered to date. This is reflected in the Composite Stock Price Index (IHSG) level, which is still mired in the 7,000s zone due to the impact of global economic uncertainty stemming from the war between the United States (US) and Iran. As a result, share prices in Indonesia have plummeted sharply, including the banking sector, which was previously a favourite.
However, successful investor Lo Kheng Hong from stock investments stated that the prospects for banking industry stocks remain very promising due to their strong performance.
“Of course, they are still promising going forward,” he said to CNBC Indonesia, quoted on Tuesday (28/4/2026).
According to him, banking stocks, especially large government-owned banks, are still very attractive because they generate quite enticing profits. This is proven by Lo Kheng Hong, as he reaped gains from his ownership of shares in PT Bank Rakyat Indonesia (Persero) Tbk (BBRI).
In March 2025, Lo Kheng Hong once said that he received a jumbo dividend from his investment in the banking sector focused on MSMEs. At that time, he held 64,636,000 shares and reaped profits of Rp13.47 billion.
According to him, dividends from red-plate banks yield higher profits compared to bank products like deposits and bonds.
“(State-owned bank stocks) are very attractive, dividend yield of government big banks 10%, higher than deposits and bonds,” he revealed.
Lo once said that he did not reduce or sell his share ownership before the cum date dividend. This is not without reason, considering the dividend yield of large banking stocks, especially state-owned bank stocks like BBRI.
For 2025 alone, BBRI’s dividend yield reached 9%. Meanwhile, for other state-owned banks like PT Bank Mandiri (Persero) Tbk or BMRI, with an estimated final dividend of Rp375.21 per share and a share price at Rp4,430, the yield offered is around 8.47%.
Whereas for PT Bank Negara Indonesia (Persero) Tbk or BBNI, with a dividend value of Rp349.41 and a share price when the dividend was announced at Rp4,260, BBNI’s dividend yield is around 8%.
Previously, Lo Kheng Hong also mentioned that the current falling share prices are caused by foreign funds exiting the capital market. This even caused blue-chip share prices to drop sharply.
“Foreign funds flee, blue-chip share prices drop a lot,” he revealed.
However, this did not make him leave the stock market. In fact, he chose to buy high-performing stocks because he considers this a good momentum.
“So I withdrew all mutual funds, liquidated deposits, and sold all my bonds to buy wonderful company stocks that are being sold off by foreigners,” he concluded.