Analysis of SOE Banking Stock Investment as Knowledge for Millenial Generation

The purpose of this study is to analyze the status of state-owned banks in Indonesia and find out which state-owned bank shares are suitable for investment by the younger generation. In addition, it aims to increase knowledge and information about investment and become one of the considerations for the younger generation in choosing a place to invest in state-owned banks. The research method used is descriptive-quantitative, using secondary data as the main material for statistical analysis. The results showed that all state-owned banks were in good condition, the lowest share price was Bank BTN, the highest share price was Bank Mandiri


INTRODUCTION
Financial technology (fintech) makes a significantly contributes to the financial system by providing quality services and increasing customer satisfaction. This encourages fintech users to make fintech investments. Investing in a fintech-based remittance system can help reduce costs. The positive impact of this phenomenon will extend to the sphere of collecting bank receivables [1]. Investing is deferring current consumption, and pouring it into productive assets for a certain period to generate future profits. Investments are divided into physical investments (gold, property, and land) and financial asset investments (stocks, bonds, and deposits). Investment can increase wealth, meet future needs, live frugally, avoid debt, avoid inflation, and expand sources of income. Investment also affects economic development, so it can be said that investment is one of the most important things. Currently, investment represents one of the most pervasive trends, with a growing number of individuals engaging in the capital market as investors. Investing has become an important necessity for the future of modern society.
However, there are still many young people who are not interested in investing because there is no plan to increase financial literacy [2]. According to research, four factors that influence young people's investment decisions. These four factors include knowledge, trust, risk-taking behavior, and the promise of reward [3].
Based on the importance of investment, several types of investment are suitable for young people.
One such investment is an investment in shares of state-owned banks. Investment banking is considered profitable and quite safe due to the constant use of banking products. In addition, investment banks are easy to buy and sell, and their branches are easy to reach. Equity is the most popular financial instrument for wealth accumulation and is the heart of every investment portfolio [4]. Stocks also have high-profit potential, making them a popular investment choice. Many investors choose stocks because they are an investment vehicle with good returns [5]. When investing, investors consider various factors such as net income, dividends, debt, cash flow, and working capital [6]. In addition, financial distress analysis is needed to determine investment [7]. Investment decisions are also more influenced by heuristics than prospects and personality traits [8].
In the capital market, the prevailing share price is the selling price, and a high share price will encourage investors to sell these shares [9]. Stock investment has the characteristics of high risk and high return, so it is necessary to propose a scientific and accurate method of valuation and selection of stocks to avoid investment risk and obtain high returns [10]. The stock market is a random and stupid game of predictability, but stocks have always attracted the attention of many analysts and researchers [11]. As one of the most important investment methods, technical analysis attempts to predict stock movements by JEM17: Jurnal Ekonomi Manajemen Volume 8, Nomor 1, Mei 2023, Halaman 039 -062 41 interpreting internal rules from historical price and volume data [12]. Predicting stock trends aims to play the most important role in stock investment [13].
In addition, some people invest by looking at the dividends offered. The dividend policy is one of the policies that must be considered and considered carefully by the company [14]. Dividend policy affects the value of a company [15]. The results also show that investors prefer to invest in stocks that pay dividends today rather than stocks that accumulate profits and then pay dividends in the future [16]. This study updates previous studies aimed at analyzing state-owned bank stocks that are suitable for investment by millennials. The study aims to increase knowledge and information about investment, as well as become one of the considerations for the millennial generation in choosing a place to invest in state-owned banks.

LITERATURE REVIEW
Millennials or Generation Y are those born between 1980 and 2000 [4]. This generation lives so close to digital technology that they are said to be inherently literate. Entering the third decade of the new millennium, the millennial generation is entering the most productive phase of their lives [17]. The characteristics of the millennial generation include wasteful use of money and high dependence on information and communication technology. The attitude of consumption has become a habit that is owned by people from advanced cultures [18]. A considerable number of individuals remain unaware of the significance of financial management in their personal lives, as they continue to perceive financial investment planning as a pursuit reserved exclusively for individuals with high incomes. [19]. Thus, financial literacy is needed to become a wise, capable, efficient, and forward-thinking in managing his finances [17].
One of the things you can do to save money for the future is invest. Investing is the purchase of goods that are not consumed today but will be used in the future. The purpose of investment is to obtain a stable income in each period, to meet future needs, and so on [20]. When investing, investors typically seek out various factors, including but not limited to investment motivation, investment knowledge, and minimum capital requirements [21]. Capital market investment is a form of investment that is readily available to the public [22]. Stock investment is one of the investment methods the capital market can choose. Stocks are intended to generate profit through the discrepancy between the selling and buying prices of the stock, commonly known as capital gains. The act of investing in stocks can yield an array of benefits.
Investing in stocks through online trading offers the advantages of cost efficiency, direct access, wider reach and greater flexibility [23]. Investing in stocks gives opportunity to earn capital gains and dividends every year [24]. Dividends are the amount paid to shareholders [25]. Dividends are a part of the JEM17: Jurnal Ekonomi Manajemen Volume 8, Nomor 1, Mei 2023, Halaman 039 -062 42 profits distributed among the shareholders, but as profits decrease, so do dividend payments and share prices. Prior to investment, conducting technical and fundamental analyses is deemed necessary to curtail losses. A safe investment for beginners is investment in the country's banking sector because it has a low risk of loss. BUMN Bank (State-Owned Commercial Bank) is a bank whose entire capital comes from separate state-owned assets and is a separate legal entity. The Indonesian government operates four banks, namely Bank Mandiri, Bank BTN, Bank BNI, and Bank BRI. Even though investment is not a measure to protect the Indonesian economy, investment is one of the factors for a more advanced and better Indonesian economic growth.

RESEARCH METHODS
This study uses a quantitative descriptive research method, with secondary data analysis methods as the main source of information. Utilizing secondary data with appropriate statistical tests to extract information from bank statement data and IDX Channel. Data analysis outcomes are commonly communicated through the use of tables, frequency tables, line charts, or bar charts. A detailed interpretation of the data presented is included in the discussion of each finding. Descriptive data is intended to explain, analyze and identify what happened. The population and sample of this study are state-owned banks in Indonesia, namely Bank Mandiri, Bank BNI, Bank BRI and Bank BTN.  Based on Bank BNI's profit and loss report, total revenue and net profit for 2020 and 2021 have decreased for two consecutive years so they tend to be slightly stable. Even though it increased in 2022, the total return in 2019 remained high. The highest net profit in 2022 was IDR 18,312,054, an increase of 19.03% compared to 2019.

. BBNI Balance
This can be seen from BNI's asset balance which is quite large and continues to increase annually.
It could even reach more than 1,000 trillion in 2022. Thus, in terms of assets, it can be said that BNI's assets are good and stable. This proves that BNI bank can maintain its assets without experiencing the slightest decrease in the 2019-2022 period.     Bank BNI is one of the banks that diligently distributes dividends every year. Even though it had experienced a decline in 2021, it was able to increase in the following year. This is very profitable for shareholders.

Figure 6. BMRI Profit and Loss Report
Based on performance figures, BMRI succeeded in attaining year-on-year escalation in both revenue and net profit. As shown in the graph above, even though the total income has decreased to IDR 6,582,139 in 2021, it is still relatively safe because it can increase revenue in 2022 which is certainly higher than in 2019, 2021, net income tends to be stable, and the frequency of increases relatively high.
The biggest increase will also occur in 2022, with an increase of IDR 13,142,482 compared to 2021. The higher gross income does not affect the net profit to be earned. Judging from the decline in net profit in 2020, this is only natural because almost all banks in Indonesia have been affected by Covid-19.
However, this state is still relatively stable, no obvious decline.

Figure 7. BMRI Balance Sheet
Judging from the capital value, Bank Mandiri's extraordinary assets can grow to more than 1,000 trillion. It can even reach more than 1,900 trillion so it has a strong capital structure and is one of the largest banks in Indonesia.

Figure 9. BMRI ROA and ROE
In regards to ROA, it can be considered rather commendable, as the metric remained above 2% between the years 2018 and 2019. Despite a decrease in ROA in 2020-2021, Bank Mandiri has again managed to increase ROA by 2.07% in 2022. According to Bank Indonesia regulatory standards, it can be said that the minimum ROE value is 12%, so Bank Mandiri's ROE is included in the healthy category,  Bank Mandiri is also one of the banks that distributes dividends regularly. Due to its increasing dividends on an annual basis, Bank Mandiri's shares can be regarded as a viable option for those seeking dividend yields. Table 10. BBRI Profit and Loss Report

Figure 11. BBRI Profit and Loss Report
Bank BRI's profits are stable and increasing annually, except for the net profit in 2020 which decreased by Rp. 12,411,839, -which is still relatively safe because the net profit in 2021 has increased and continues to increase in the second year. Judging from the net profit and comprehensive profit reports, Bank BRI is increasingly stable and growing more frequently, with the biggest increase in 2022.
This shows that Bank BRI is running well and can maintain its profitability.

Figure 12. BBRI Balance Sheet
Bank BRI is a bank with sizable assets, which will reach more than 1,800 trillion in 2022, and is included in a bank with a strong capital structure. Wealth also grew over the 2019-2022 period.

Figure 13. BBRI Cash Flow Report
Bank BRI's cash flow is included in the appropriate category, and cash flow from investing activities increases annually. In fact, in 2022 there was a very significant increase of 100,323,565 compared to the previous year, which of course impacted on changes in net cash received from bank BRI.
The higher the amount of cash received, the higher change in net liquidity.  Bank BRI's ROA is quite good because it managed to stay above 1.5% in 2018-2019, so it is classified as very healthy, but experienced a sharp decline in 2020. However, Bank BRI managed to overcome it, growing to 1.85% in 2021, increasing 0.62% from 2020, placing the bank back in the very healthy category. There was a significant growth of 0.89% in 2022. This means that BRI has improved its ability to manage assets. Regarding ROE, it has demonstrated a degree of stability, despite experiencing a downturn in 2020. Nonetheless, BRI can elevate the metric in the upcoming year.

Figure 15. BBRI Stock Chart
Looking at the charts for 5 years period, they are in good shape. The lowest price decrease occurred on May 15, 2020, of IDR 2,185. However, this state is only temporary. Bank BRI was able to increase again in a short time. On March 31, the price reached 4,730 rupiah, meaning that 473,000 rupiah was needed to buy 1 lot, so the price of BRI bank shares was quite cheap.  The dividend paid is quite high, and while it will decrease in 2021, the increase in 2023 will be quite large. This is attractive to investors seeking to profit from dividends.

Figure 16. BBTN Profit and Loss
Bank BTN's net profit increases every year. In 2022 it will increase by 1,355% compared to 2019. This is considered very good because banks can increase their ability to increase their profitability.    The market graph of Bank BTN has been less stable for the last 5 years. The lowest price on May 15, 2020, was IDR 745 per share. On March 31, 2023, the share price was IDR 1,225, so IDR 122,500 was needed to buy 1 lot, very cheap compared to other banks. Bank BTN distributes dividends with fluctuating yields. Neverthless no dividends will be paid in 2022. This means that dividend distribution tends to be erratic.

DISCUSSION
Conducting a comparative analysis of stocks is deemed an essential step to undertake before investing. Each stock always has advantages and disadvantages. One of the things investors often consider before investing is comparing prices, dividends, and yields. Some of these things are closely related to investment decisions. The millennial generation wants to invest at affordable prices but with big profits.

Table 20. Comparison of Stock Prices and Dividends
The table above shows that during the 2020-2023 period, buying 1 lot of shares simultaneously.
The cheapest shares are shares of Bank BTN (BBTN) and the shares with the highest price are shares of Bank Mandiri (BMRI). Bank BNI and Bank Mandiri have the same return on investment of 64% of the initial purchase. However, the nominal value received is higher than Bank Mandiri. This means that the more money spent, the more money earned. All state-owned banks diligently distribute dividends every year. The highest average dividend is Bank BRI and the lowest is Bank BTN.

CONCLUSION
Investment analysis of BUMN Bank shares in Indonesia is useful for the millennials generation in making investment choices. Each bank has advantages and disadvantages. All state-owned banks in Indonesia are in good condition. If you want to learn to invest with small capital, you can choose BTN bank because of the cheap stock prices. However, if seeking sizable capital gains is a priority, selecting Bank Mandiri or Bank BNI may prove advantageous. The biggest dividend gain is Bank BRI, which is suitable for investors who are more interested and focused on dividends. This research has limitations, namely it only examines state-owned banks in Indonesia, it is expected to be able to expand the sample JEM17: Jurnal Ekonomi Manajemen Volume 8, Nomor 1, Mei 2023, Halaman 039 -062 59 for further researchers. It cannot be denied that if you want to get big profits, you must be prepared to accept big risks.
Analyzing investments in state-owned banks in Indonesia can help millennials make investment decisions. Each bank has advantages and disadvantages. All state-owned banks in Indonesia are in good shape. If you want to learn to invest with small funds, you can choose Bank BTN because the share price is affordable. However, if you want to make big profits from capital gains, you can choose Bank Mandiri or Bank BNI. The biggest winner in dividends is Bank BRI, so it is suitable for investors who are more interested and concerned about dividends. It is undeniable that to make big money, you must be willing to take big risks (High Risk High Return).

SUGGESTION
This study is limited because it only examines state-owned banks in Indonesia, and it is hoped that the sample can be expanded for future researchers.