The Indonesian stock market has yet to recover and remains under pressure. This is reflected in the Composite Stock Price Index (IHSG), which is still hovering around the 7,000 level due to global economic uncertainty stemming from the conflict between the United States (US) and Iran. As a result, Indonesian stocks have dropped sharply, including those in the banking sector that were previously considered top performers.

However, successful stock investor Lo Kheng Hong stated that the outlook for banking sector stocks remains highly promising due to their strong performance.

“Of course, it is still promising going forward,” he said in an interview with CNBC Indonesia, quoted on Tuesday (April 28, 2026).

He explained that banking stocks, especially large state-owned banks, remain very attractive because they generate substantial profits. This is evident from his own gains from holding shares in PT Bank Rakyat Indonesia (Persero) Tbk (BBRI).

In March 2025, Lo Kheng Hong revealed that he received significant dividend income from his investment in the bank focused on the MSME sector. At that time, he held 64,636,000 shares and earned profits amounting to Rp13.47 billion.

According to him, dividends from state-owned banks provide higher returns compared to profits from banking products such as deposits and bonds.

“(State-owned bank stocks) are very attractive, with dividend yields of major government banks reaching 10%, higher than deposits and bonds,” he stated.

He also mentioned that he did not reduce or sell his shareholdings before the dividend cum date.

Previously, Lo Kheng Hong had also pointed out that the recent decline in stock prices was caused by foreign capital outflows from the capital market, which also led to a sharp drop in blue-chip stocks.

“Foreign funds are leaving, and blue-chip stock prices have fallen significantly,” he said.

Nevertheless, this situation did not prompt him to exit the stock market. Instead, he chose to take advantage of the opportunity by purchasing fundamentally strong stocks, considering the current condition as a favorable moment.

“As a result, I withdrew all my mutual funds, liquidated my deposits, and sold all my bonds to buy shares of wonderful companies that are being sold cheaply by foreign investors,” he concluded.