The Dasco Effect! State-Owned Bank Stocks Surge in Unison
Shares of issuers belonging to the State-Owned Bank Association (Himbara) rose in unison during trading on Thursday (15/01/2025). The Himbara stocks recorded significant gains after several CEOs of Indonesia’s largest state-owned banks met with the Deputy Speaker of the House of Representatives, Sufmi Dasco Ahmad.
The strengthening of state-owned bank stocks helped drive a rally in the Jakarta Composite Index (IHSG), which recorded an increase of over 4% today. Towards the end of the first trading session, Bank Tabungan Negara (BBTN) led the gains with an 8.57% increase to Rp 1,150 per share, followed by Bank Negara Indonesia (BBNI) which jumped 5.98% to Rp 3,190 per share. Bank Rakyat Indonesia (BBRI) also strengthened by 4.63% to Rp 2,710 per share, while Bank Mandiri (BMRI) rose 5.12% to Rp 5,900 per share. Finally, Bank Syariah Indonesia (BRIS) also surged by 5.57% to Rp 1,705 per share.
The surge in Himbara stocks follows a meeting between Deputy Speaker Sufmi Dasco Ahmad, the State-Owned Bank Association (Himbara), the Indonesian Banks Association (Perbanas), and various other financial sector stakeholders at the Nusantara III Building, Parliament Complex, Senayan, Central Jakarta. The meeting addressed the current volatility in the stock market, including the recent slump in state-owned banking stocks.
“This morning we are coordinating, particularly to discuss the market, especially regarding state-owned enterprise stocks,” Dasco stated before commencing a closed-door meeting at the DPR RI Nusantara III building. He noted that while state-owned banks possess strong fundamentals and performance, they had been dragged down by global market volatility.
Also present at the meeting were the Chairman of Himbara and CEO of PT Bank Negara Indonesia (Persero) Tbk, Putrama Wahju Setiawan, and the Chairman of Perbanas and CEO of PT Bank Rakyat Indonesia (Persio) Tbk, Hery Gunardi. Also in attendance were the State Secretary, Prasetyo Hadi, and the Head of the SOE Regulatory Agency/COO of Danantara Indonesia, Dony Oskaria.
“Today, the House of Representatives of the Republic of Indonesia is conducting coordination and evaluation regarding the current situation related to the banking situation in the country,” said Dasco. He added that he had received information regarding the current banking situation from Himbara and Perbanas, noting that the developments from the discussions were very positive.
On the other hand, external sentiment is relatively more conducive compared to the previous sell-off wave. Although the Rupiah remains around Rp 18,160 per US Dollar, its depreciation has begun to stabilise, slightly easing investor concerns regarding potential further pressure on the domestic financial market.