BJTM May Stay SidewaysBJTM stays on long-term downtrend. It probably will move sideways around 450-580 (February highs and lows) in the foreseeable future as it strives to create new supports.
Nothing particularly unfavorable can be seen on the books. BJTM grew moderately in the first quarter, and that's that. However, several corporate news have increased pressures on BJTM since 2024.
First, the controversial BEKS acquisition plan. Though it was probably arranged by the government, investors did not think it would be favorable for BJTM.
Second, suspected loan fraud. Earlier this year, Jakarta prosecutors detained three suspects on loan manipulation case in its Jakarta office. There are no reports of BJTM direct involvement, but the news soured our mood.
Third, Indonesian central bank most likely will cut rates again. Rate cut itself should not significantly impact BJTM as local government-affiliated bank, but slower growth is on the horizon.
