JAKARTA – Several banking issuers’ shares in Indonesia have shown a significant downward trend, particularly shares of state-owned banks.

One of the main factors behind the decline in BUMN bank shares is the massive sell-off by foreign investors, according to Achmad Yaki, Head of Online Trading at BCA Sekuritas.

However, Yaki noted that banking stocks, especially state-owned banks such as PT Bank Rakyat Indonesia (Persero) Tbk (BBRI), PT Bank Negara Indonesia (Persero) Tbk (BBNI), and PT Bank Mandiri (Persero) Tbk (BMRI), are still considered to have strong business fundamentals.

“The Ministry of BUMN has a vested interest in maintaining the performance of these banks due to their contribution to the state’s coffers through dividend payments,” he told reporters on Tuesday (12/2).

According to data compiled by IDNFinancials, BBRI’s share price has dropped 4.75% year-to-date (ytd) to IDR 4,010, as of the close of trading on Tuesday (11/2).

Meanwhile, BMRI’s share price has also fallen by 16.41% ytd to IDR 4,890 per share. Additionally, BBTN’s share price has plummeted 21.85% ytd to IDR 930 per share. (DK/ZH/KR)