Key Indices
Top Stories
Economics | BI Holds Rate At 5.75% Amid “Goldilocks” Global And Domestic Conditions
- Bank Indonesia held its policy rate at 5.75% at the Aug 26 meeting, which marked Destry's first policy session since Perry's resignation. The decision came amid global "Goldilocks" conditions - characterised by a weaker US dollar and robust capital inflows - as well as domestic stability. BI also adjusted swap provisioning to sustain foreign investment flows. However, geopolitical risks persist, and we still expect the Fed to eventually hike rates in late-26 or early-27, with BI delivering two 25bp hikes.
Sector Update | Banking – Funding Quality Takes Centre Stage
- BBCA and BMRI continue to deliver resilient earnings in 7M26, but funding profiles are diverging as credit growth outpaces organic liquidity creation. Corporate, investment and SOE lending remain key growth drivers, while MSME and household demand remains weak. Government liquidity provides near-term relief but does not fully address SOE banks’ higher-cost funding reliance. We maintain MARKET WEIGHT, preferring BBCA for its solid CASA franchise and improving asset yields, while successful KopDes repayments could support a more constructive view on SOE banks.
Technical Analysis
Dian Swastatika Sentosa | DSSA IJ
- Trading Buy Range: We have a technical Buy at Rp1,035, and take profit at Rp1,110.
Elang Mahkota Teknologi | EMTK IJ
- Trading Buy Range: We have a technical Buy at Rp520, and take profit at Rp550.
Top Stories
Economics | BI Holds Rate At 5.75% Amid “Goldilocks” Global And Domestic Conditions
- Bank Indonesia held its policy rate at 5.75% at the Aug 26 meeting, which marked Destry's first policy session since Perry's resignation. The decision came amid global "Goldilocks" conditions - characterised by a weaker US dollar and robust capital inflows - as well as domestic stability. BI also adjusted swap provisioning to sustain foreign investment flows. However, geopolitical risks persist, and we still expect the Fed to eventually hike rates in late-26 or early-27, with BI delivering two 25bp hikes.
Sector Update | Banking – Funding Quality Takes Centre Stage
- BBCA and BMRI continue to deliver resilient earnings in 7M26, but funding profiles are diverging as credit growth outpaces organic liquidity creation. Corporate, investment and SOE lending remain key growth drivers, while MSME and household demand remains weak. Government liquidity provides near-term relief but does not fully address SOE banks’ higher-cost funding reliance. We maintain MARKET WEIGHT, preferring BBCA for its solid CASA franchise and improving asset yields, while successful KopDes repayments could support a more constructive view on SOE banks.
Technical Analysis
Dian Swastatika Sentosa | DSSA IJ
- Trading Buy Range: We have a technical Buy at Rp1,035, and take profit at Rp1,110.
Elang Mahkota Teknologi | EMTK IJ
- Trading Buy Range: We have a technical Buy at Rp520, and take profit at Rp550.
Key Indices
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
Our latest research
20 Aug 2026
China Resources Beer / Crystal International / Fuyao Glass / Hong Kong Exchanges and Clearing / Kuaishou Technology / Ping An Healthcare and Technology / Sino Biopharmaceutical
19 Aug 2026
