Sulaiman Arianto, Deputy Director of Bank Mandiri, said he expects an increase in interest for Bank Mandiri shares as they become more affordable. He added that there are actually many investors who have never sold their Bank Mandiri shares since the company went public on the Indonesia Stock Exchange in 2003.

Rohan Hafas, Corporate Secretary of Bank Mandiri, said the stock split will be announced during the company's extraordinary general shareholders' meeting on 21 August 2017.

On Tuesday (08/08) shares of Bank Mandiri rose 1.9 percent on the stock split news. One day later, however, its shares fell 0.19 percent to IDR 13,400 a piece as some investors engaged in profit taking. So far this year, shares of the bank have risen 15.77 percent.

Stock Quote Bank Mandiri - BMRI:

The share value of Bank Mandiri is actually lower compared to the other Indonesian banks that rank among the BUKU IV category. BUKU (Bank Umum Kelompok Usaha) is a categorization system, designed by Indonesia's central bank, that divides Indonesian banks into four categories based on their capital. BUKU IV is the highest category with core capital above IDR 30 trillion (approx. USD $2.2 billion).

For example, Bank Rakyat Indonesia's shares were IDR 15,025 a piece. Bank Central Asia's shares were IDR 18,975 a piece, while shares of Bank CIMB Niaga (which only recently rose to the BUKU IV category) were only IDR 1,310 a piece (at the end of trading on Wednesday 9 August 2017).

Bank Central Asia (BCA) has already conducted a stock split three times (on 14 May 2001, 8 June 2004 and 28 January 2008), while Bank Rakyat Indonesia (BRI) had its stock split on 11 January 2011.

Bank Mandiri released a good corporate earnings report last month. Its net profit rose 33 percent (y/y) to IDR 9.5 trillion.