POJK Number 12/03/2020 on Commercial Banks Consolidation to require banks to have the core capital of IDR3 trillion at minimum has banks aggressively expand their businesses and maintain efficiency and profitability. Those aggressive business expansion causes higher risks. However, the implementation of POJK Number-r 12/POJK.03/2020 has no significant impacts on Bank Central Asia Tbk (BBCA IJ) as one of BUKU IV banks with the core capital higher than IDR30 trillion. Indeed, BBCA IJ is proven to be pretty capable of maintaining CoF efficiency and NIM profitability. NHKSI recommends BBCA as this week’s top-stock pick, projected to reach the price target of IDR32,000 with the P/BV target of 4.2x.

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