Fitch Ratings Downgrades Outlook for Four Indonesian Banks

April 23, 2026 | 12:07 pm

TEMPO.CO, Jakarta - Credit rating agency Fitch Ratings has downgraded the credit outlook of four major Indonesian banks. The four banks are Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Central Asia (BCA), and Bank Negara Indonesia (BNI).

However, Fitch Ratings has maintained the credit ratings of these four banks at the BBB level. This outlook downgrade is in line with the revised Indonesia's debt outlook from stable to negative in March 2026.

Fitch stated that the revision of Indonesia's debt outlook reflects increasing policy uncertainty with potential implications for medium-term fiscal direction and external buffers. Additionally, Fitch mentioned that the prolonged Iran conflict also poses "downside risk if higher global energy prices weigh on borrowers' debt serviceability."

"However, the banking system's key performance metrics have remained sound, with ample loan-loss reserves and robust capitalization, which provide adequate buffers to absorb potential deterioration under our base case," Fitch wrote in its announcement quoted on Thursday, April 23, 2026.

On a separate note, Kiwoom Sekuritas Indonesia's Research Team stated that foreign investors have been actively selling the shares of these four banks over the past three months. Kiwoom Sekuritas recorded the net sale accumulation of foreign investors for BBCA at Rp22 trillion; BBRI at Rp5.4 trillion; BMRI at Rp3.6 trillion; and BBNI at Rp2.7 trillion.

"Our concerns are the weakening of the rupiah, BI's benchmark interest rate has dropped, and banks will find it difficult to pursue Net Interest Income (NII) growth this year," wrote Kiwoom Sekuritas' research team in their statement quoted on Thursday, April 23, 2026.

Read: S&P Raises Concern Over Indonesia's Rp600tn Debt Interest Burden

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