President Director of PT Bank Central Asia (BCA) Jahja Setiaatmadja responded to the recent downward trend in banking sector stock prices, citing correction has not only been experienced by BCA shares, but also other large banks − both state-owned and private.

Jahja said that global turmoil was one of the main triggers for the decline in stock prices, with the announcement of a new tariff policy by U.S. President Donald J. Trump during the recent long Idul Fitri holiday being a prominent one.

"Trump announced additional import tariffs for countries with a trade balance that is considered detrimental to America, including Indonesia which is subject to a tariff of 32 percent," Jahja told a press conference on the presentation of the performance of the First Quarter of 2025, at the BCA Tower, Jakarta, on Wednesday, April 23, 2025.

The policy, he said, triggered a negative reaction from the market when it reopened on April 8-9, 2025. "There was an immediate major correction in the banking sector. Investors reacted spontaneously by selling due to this global uncertainty," he said.

Nevertheless, Jahja remains optimistic about the medium and long-term prospects of banking stocks, especially those with strong fundamentals. He believes that stocks like BCA’s will be accumulated again by investors after going through the correction phase.

"Companies with good fundamental performance will definitely start to be accumulated again, including BCA," he said.

Furthermore, BCA has announced a share buyback program worth Rp1 trillion (US$62.5 million) which started in mid-April. However, Jahja admitted that the impact on stock movements so far has not been significant.

He emphasized that the main focus of management is not solely on the stock price, but on strengthening the company's financial performance. "Our target is to maintain profitability, return on assets, return on equity, cost to income ratio, and asset quality. If all of that is good, the stock price will follow," he said.

Jahja declined to provide a projection on BCA's future stock price, saying that BCA's focus is on maintaining performance, not speculating on stock prices.

Throughout the first quarter of 2025, BCA posted a net profit of Rp14.1 trillion (US$85.75 million) or grew 9.8 percent annually (YoY). Disbursed credit also grew 12.6 percent YoY to Rp941 trillion (US$56.95 million) , driven by growth in low-cost funds (CASA) of 8.3 percent YoY to Rp979 trillion (US$59.25 million). Total Third Party Funds (DPK) were recorded to have increased 6.5 percent YoY to Rp1,193 trillion (US$7.22 billion).

Farewell

On the same occasion, Jahja Setiaatmadja announced his resignation from the position he had held for more than 14 years. Starting June 1, 2025, Jahja will switch roles to become President Commissioner of BCA.

Jahja said the leadership change had been decided at the last General Meeting of Shareholders (GMS).

"I ask for your permission, at our previous GMS it was decided that as of June 1, or if there is no approval from the OJK regarding the fit and proper test, then there will be a change in management," he said.

BCA had previously submitted a request for a fit and proper test to the Financial Services Authority (OJK) for all new management candidates. As a result, the OJK stated that Jahja Setiaatmadja was worthy of holding the position of President Commissioner.

In addition to Jahja, a number of strategic positions have also changed. Hendra Lembong was appointed as President Director of BCA replacing Jahja, John Kosasih as Deputy President Director, and Hendra Tan as one of the new directors.

"So as of June 1, there will be a transfer of office process," said Jahja.

Ending his term as the highest operational leader of BCA, Jahja conveyed his farewells to the public and stakeholders.

"So I am saying goodbye as president director, but we will still meet in my capacity as president commissioner," he concluded.