JAKARTA – The Indonesian Government's plan to mandate the participation of state-owned banks in the 3 million homes programme has the potential to strain the performance of several state-owned banks (BUMN).

This plan was previously conveyed by Hashim Djojohadikusumo, Chair of the Housing Task Force, during the Economic Outlook event in Jakarta on Wednesday (26/2). “Himbara banks (Association of State-Owned Banks) are in support, and I hear there will be an order to support,” Hashim said.

However, Hashim clarified that the regulation is still under discussion among several decision-makers.

In response to the proposal, Investment Analyst Lead at Stockbit Sekuritas Digital, Edi Chandren, stated that Himbara banks are likely to face uncertainty regarding margins and asset quality from financing this programme.

This is particularly true for PT Bank Rakyat Indonesia (Persero) Tbk (BBRI), PT Bank Mandiri (Persero) Tbk (BMRI), and PT Bank Negara Indonesia Tbk (BBNI), which have historically not focused on public housing financing like PT Bank Tabungan Negara (Persero) Tbk (BBTN).

“In our view, generally, this uncertainty may trigger negative sentiment, at least in the short term,” Edi said in his research.

Nevertheless, Edi emphasised that banking margins depend on several factors, including financing interest rates, funding schemes, and the cost of funds. Meanwhile, asset quality will be influenced by factors such as financing schemes, tenure, and borrower selection.

According to data from IDNFinancials.com, BBRI's stock price closed down by 4.97% in Thursday’s (27/2) trading session. Meanwhile, BMRI’s share price fell by 5.28%, BBTN by 0.56%, and BBNI by 0.23%. (KR/ZH)