Rancak Media – , JAKARTA — Renowned investor Lo Kheng Hong is strategically preparing his investment portfolio for the upcoming year 2026. Beyond merely seeking undervalued stocks, Lo emphasized that his primary focus for the next year will be on high-dividend stocks and state-owned banks, which he believes are poised to reclaim their prime position amidst a prevailing trend of declining interest rates.
Lo views the downward trajectory of the BI rate as a pivotal catalyst for the market. Throughout 2025, Bank Indonesia has progressively lowered its benchmark interest rate to 4.75%, marking its lowest level since 2022. This favorable monetary environment is expected to create significant headroom for banking sector stocks to record renewed performance expansion.
“I have plans to buy [stocks]. I typically favor the banking sector,” Lo stated following the BIG 40 Award event on Monday, December 8, 2025, in Jakarta.
He specifically highlighted Himbara (state-owned) bank stocks such as BBRI and BMRI as strong candidates for his investment basket, citing the sustained liquidity support from the government. Furthermore, he reiterated that the dividend yields from banking stocks are substantially more attractive compared to traditional time deposits. “For instance, Bank Mandiri’s dividend yield can reach 9%, while Bank Rakyat Indonesia (BRI) offers an 8% dividend yield. These figures are more than double the standard bank interest rates. If a bank deposit offers 5%, after tax, it effectively becomes around 4%. With an 8% dividend, it’s clearly superior,” he explained.
Beyond the banking sector, Lo Kheng Hong is also setting his sights on the mining and palm oil sectors. These two industries have historically formed the bedrock of his portfolio, consistently delivering stable profits. Throughout 2025, Lo has maintained his position as the largest individual shareholder in several prominent issuers across coal, palm oil, and even property.
His significant interests are evident across various sectors. In the palm oil plantation sector, Lo Kheng Hong stands as the largest individual investor in Salim Group’s issuer, PT Salim Ivomas Pratama Tbk. (SIMP). Data from PT Kustodian Sentral Efek Indonesia (KSEI) reveals that Lo Kheng Hong holds 779.20 million shares of SIMP, equivalent to a 5.03% stake. Similarly, in the coal mining sector, he is also the largest individual investor in PT ABM Investama Tbk. (ABMM), with KSEI data indicating his ownership of 154.01 million shares, or 5.59%.
Furthermore, Lo Kheng Hong holds a substantial portfolio in the property sector, notably in PT Intiland Development Tbk. (DILD), where he is recorded as holding 691.51 million shares, representing a 6.67% ownership. His influential presence extends to other prominent companies as well. As of the close of the third quarter of 2025, Lo Kheng Hong was also listed among the largest shareholders, with ownership exceeding 5%, in PT Global Mediacom Tbk. (BMTR) (6.44%) and PT Gajah Tunggal Tbk. (GJTL) (5.76%).
Beyond these large-scale portfolios, Lo Kheng Hong maintains stakes in a range of other issuers, albeit below the 5% threshold. An example is PT Bank Danamon Indonesia Tbk. (BDMN), where he recently increased his shareholding to 26.10 million shares, translating to a 0.26% stake. This move positions him as the fifth-largest shareholder in Bank Danamon Indonesia.
Disclaimer: This article is not intended as an invitation to buy or sell stocks. Investment decisions rest solely with the reader. Bisnis.com is not responsible for any losses or gains arising from readers’ investment decisions.
Summary
Renowned investor Lo Kheng Hong is strategically preparing his investment portfolio for 2026, with a primary focus on high-dividend stocks and state-owned banks. He anticipates that the prevailing trend of declining interest rates will be a pivotal catalyst, boosting the banking sector’s performance. Lo specifically highlights Himbara banks such as BBRI and BMRI, citing their attractive dividend yields which significantly surpass traditional time deposit rates.
Beyond the banking sector, Lo Kheng Hong is also targeting the mining and palm oil sectors, which have consistently formed the bedrock of his portfolio. As of 2025, he maintains significant stakes, being the largest individual shareholder in PT Salim Ivomas Pratama Tbk. (SIMP) for palm oil and PT ABM Investama Tbk. (ABMM) for coal mining. His other substantial holdings include PT Intiland Development Tbk. (DILD), PT Global Mediacom Tbk. (BMTR), and PT Gajah Tunggal Tbk. (GJTL).
