Banking (OVERWEIGHT): BI keeps benchmark rate unchanged at 5.75%
- Bank Indonesia keeps benchmark rate at 5.75%, inline with our estimate. We are
forecasting that current policy stance will last until the end of this year. This implies
that the maximum 6.25% Rupiah time deposit rate for the big banks remains.
Therefore, any changes in lending rates going forward will be driven more by
competition instead of cost pressure.
- We recommend BUY on BRI.IJ and BCA.IJ. Our TP for BBRI.IJ is IDR8,500/share
(12.6x 2012F PER; 3.3x 2012F PBV). For BBCA.IJ TP is IDR9,300/share (18.4x
2012F PER; 4.6x 2012F PBV).