Movement of Red Plate Bank Shares after the Transition

Key Points

•    The JCI rose 0.26 percent, but state-owned bank shares fell by up to 0.92 percent.

•    The decline occurred after the House of Representatives passed the State-Owned Enterprises Law, which transformed the Ministry of State-Owned Enterprises into a Regulatory Agency.

•    The new law is considered a positive long-term catalyst for the transparency and efficiency of state-owned enterprises.

Jakarta – The Composite Stock Price Index (IHSG) in today’s first trading session, Thursday, October 3, 2025, closed higher at 8,092.09 from 8,071.08, an increase of 0.26 percent.

However, the financial sector was one of the sectors that experienced a decline of 0.89 percent, with large-cap state-owned bank stocks dominating the decline.

Based on data from Stockbit Sekuritas, PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) weakened 0.54 percent to Rp3,690 per share, while PT Bank Mandiri (Persero) Tbk (BMRI) fell 0.92 percent to Rp4,320 per share.

Furthermore, PT Bank Negara Indonesia (Persero) Tbk (BBNI) also experienced a correction of 0.50 percent to Rp4,020 per share.

The decline in banking stocks occurred following the passing of the Fourth Amendment to Law No. 19 of 2003 on State-Owned Enterprises by the Indonesian House of Representatives.

One of the main points in this regulation is the change in status of the Ministry of State-Owned Enterprises to the State-Owned Enterprises Regulatory Agency (BP BUMN).

This institutional transition is considered to cause short-term volatility in the market due to the process of adjusting structures and regulations.

Long-Term Effects Considered Positive

On the other hand, the establishment of the SOE Regulatory Agency is believed to have a positive impact as it can strengthen good corporate governance through its supervisory function and transparency by the Supreme Audit Agency (BPK).

Furthermore, the prohibition of concurrent positions for ministers or deputy ministers and the appointment of professionals to commissioner positions are expected to increase management independence, so that business decisions are more oriented towards performance and profitability.

Overall, this law has the potential to be a positive catalyst for the valuation of state-owned enterprises in the medium to long term, as it promotes transparency, professionalism, and efficiency. (*)

Editor: Yulian Saputra