Video: If the Fed Has Not Cut Interest Rates, Here Is the Effect on the BI Rate

Jakarta, CNBC Indonesia - Sucor Sekuritas Chief Executive Officer Bernadus Widjaya has identified the banking sector as one of the sectors that could potentially strengthen again and is worth considering. Currently, banking valuations are very cheap, including big-cap banks with average price-to-earnings ratios below 10 and potential dividend yields of more than 10%, making them quite attractive.

In addition, the commodity sector also has growth potential in line with the rise in crude oil prices, which has lifted commodity prices including coal and copper. On the other hand, sectors related to artificial intelligence (AI) present opportunities, given that stocks in this sector continue to grow in the United States, South Korea, and Japan.

Regarding the policy of the US central bank, the Federal Reserve is heavily influenced by the release of US inflation data. If inflation continues to decline and reaches the Fed’s inflation target, the Fed could potentially hold rates. Meanwhile, for Bank Indonesia, the potential for a BI Rate cut is closely linked to developments in foreign capital flows, the position of the rupiah exchange rate, and the Fed’s policy.

What is the direction of Indonesia’s financial markets amid market turmoil? Watch the full discussion with Shania Alatas and Sucor Sekuritas Chief Executive Officer Bernadus Widjaya on Squawk Box, CNBC Indonesia (Wednesday, 26/08/2026).