JPMorgan Sells Shares of Indonesia’s Biggest Banks, What’s the Impact?

JPMorgan’s Selloff Amid a Decline in Banking Stocks

Indonesia’s capital market was recently shaken by JPMorgan’s large-scale selloff of shares in three of the country’s largest banks: Bank Central Asia (BCA), Bank Rakyat Indonesia (BRI), and Bank Mandiri. According to reports from early June 2025, JPMorgan released tens of millions of shares in these jumbo Indonesian banks in stages. This move took place during a period when bank stock prices were falling, sparking speculation among market participants.

BCA’s stock price dropped by around 0.56% to IDR 8,925 per share on June 5, 2025, down from IDR 9,475 the previous week. Bank Mandiri and BRI also faced similar pressure. Data from the Indonesia Stock Exchange (IDX) shows that this selloff did not occur in just one day, but was executed gradually in response to market volatility.

Reasons Behind the Selloff: Profit Taking and Portfolio Rotation

Why did JPMorgan sell shares of Indonesia’s jumbo banks when many analysts still recommend buying? According to Bisnis Indonesia and external sources, this selloff was mainly driven by a profit-taking strategy after several weeks of stock price increases. Additionally, global investors have recently been rotating their portfolios—some institutions are reducing exposure to emerging markets like Indonesia for diversification or to strengthen positions in other assets.

JPMorgan’s move does not indicate a lack of confidence in Indonesia’s banking sector. On the contrary, analysts believe the fundamentals of these major banks remain solid. Even after the selloff, buy recommendations still dominate market research. This confirms that JPMorgan’s share release is more technical in nature, not due to deteriorating fundamentals.

Impact on Share Prices and Market Sentiment

JPMorgan’s selloff did temporarily push down the share prices of Indonesia’s jumbo banks. However, this drop is considered a normal part of the market cycle. For example, despite large-scale selling, BRI remains a main driver of the index and continues to attract both domestic and foreign investors. Some analysts even argue that this price correction creates opportunities for long-term investors to enter at more attractive levels.

Positive sentiment is sustained by the strong fundamentals of these banks—such as low non-performing loan (NPL) ratios and robust profit growth—making them among the strongest in Southeast Asia. Macroeconomic factors, such as Bank Indonesia’s interest rate policy and credit growth projections, also support the recovery of the national banking sector.

Analyst Opinions: Still Worth Accumulating?

Most analysts affirm that JPMorgan’s sale of BCA, BRI, and Mandiri shares is not a negative long-term signal. Research from both local and global securities firms shows target prices for these three banks remain above current market levels. Thus, the ongoing correction is actually seen as an accumulation opportunity for long-term investors.

Investors are advised to remain cautious but not panic excessively. In terms of Price-to-Book Value (P/BV) and Return on Equity (ROE), these banks continue to show promising growth potential. The buy recommendation remains supported by market consensus.

Opportunity or Threat?

JPMorgan’s move to sell shares of Indonesia’s jumbo banks has indeed raised concerns among investors. However, when viewed in the context of global portfolio strategy and the strong fundamentals of Indonesia’s banks, this action is better seen as a profit-taking strategy. The resulting price correction may offer an entry point at more attractive prices. Market participants should continue to monitor macroeconomic developments and the actions of foreign investors moving forward.