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State bank, BCA stocks favored in tax amnesty: Analyst
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Investa Saran Mandiri analyst Hans Kwee gives a presentation at the Indonesia Economic Outlook 2016 event held at Atma Jaya Catholic University in Jakarta on Tuesday. (thejakartapost.com/Anton Hermansyah)
T
he stocks of lenders acting as trustee banks in the tax amnesty program are promising for medium-term investment, especially Bank Mandiri, Bank Negara Indonesia (BNI), Bank Raykat Indonesia (BRI) and Bank Central Asia (BCA), an analyst has said.
Investa Saran Mandiri analyst Hans Kwee said Bank Mandiri and BNI had closer access to the government’s projects, which are risk free. Meanwhile, BCA has good credit quality, proven by its low non-performing loans at only 1.1 percent, far below the normal level of 5 percent.
“They can absorb most of the tax amnesty funds and have many places to invest into. So their stocks are good to buy,” Hans told thejakartapost.com at Atma Jaya Catholic University in Jakarta on Tuesday.
Meanwhile, he added, BRI would still be the best performer in the small and medium enterprises (SMEs) market, followed by private SME lenders Bank BTPN and Bank Danamon, which are included among trustee banks for the tax amnesty.
“What disappoints me is that BTN is excluded from the list. This bank really has potential if it received tax amnesty funds,” Hans said.
BTN is Indonesia’s largest mortgage lender, holding around 97 percent of middle-low housing credit in Indonesia. Allowing it to absorb the repatriated funds would be a good factor to boost it in financing the government’s 4 million houses program. (ags)
