Contents
Nusantara’s awakening 3
Bullish: Rakyat is our top pick 4
Initiating coverage: BCA, Danamon, Mandiri and Rakyat 5
Loan, margin dynamics compared 7
Fee income, operating cost dynamics compared 10
Asset quality, credit cost dynamics compared 11
Capital levels, ROE dynamics compared 12
Macro outlook: the sum of positives 15
Fiscal stimulus 16
Monetary policy 17
Indonesian politics 20
Micro fundamentals: banking sector sweet spot 22
Industry growth potential 23
Bank Indonesia policy support 25
Sector asset quality 27
Net interest margins 28
Capital positions and ROE, leverage 29
BASEL II implementation 31
Indonesian Banking Architecture (IBA) 32
Credit ratings 36
Latest company views
Bank Central Asia 38
Bank Danamon Indonesia 54
Bank Mandiri 71
Bank Rakyat Indonesia 87