Merdeka Battery Materializes a $88 Million Buyback to Anchor Floating Equity

JAKARTA, Investortrust.id — PT Merdeka Battery Materials Tbk, an Indonesian nickel mining and processing heavyweight, plans to execute a massive share buyback program, deploying up to Rp1.462 trillion (approximately $88.3 million) to anchor its equity valuation amid heightened equity market volatility.

According to official corporate disclosures filed on Tuesday, June 16, 2026, with the Indonesia Stock Exchange, the company is targeting the repurchase of up to 1.548 billion shares of common stock. This maximum allocation incorporates all associated brokerage fees, intermediary transaction costs, and regulatory overhead.

The defense maneuver arrives at a pivotal structural moment for global commodity supply chain operators. As major global economies scramble to secure upstream components for the electric vehicle revolution, early-stage raw mineral processors have found their public market valuations detached from operational realities, caught in the crosscurrents of shifting global interest rates and fluctuating metal benchmarks. By stepping in as the buyer of first resort, the corporate treasury aims to create a synthetic floor for its equity, signaling to international asset managers that its long-term industrial fundamentals remain underpriced by local bourses.

Navigating the Volatility Window

The strategic open-market intervention is scheduled to begin on June 17 and conclude by September 16, 2026, operating within a tight three-month execution window. The initiative is being deployed under emergency market provisions established by Indonesia's financial services regulator, the Otoritas Jasa Keuangan (OJK). Specifically, the rules permit public corporations to initiate buyback programs without preceding shareholder general assemblies during intervals marked by significant systemic trading fluctuations, aimed at restoring equilibrium to the national capital markets.

Corporate executives confirmed on Tuesday that the repurchase operations will buy back outstanding tranches at price levels deemed favorable, fair, and legally compliant under current statutory guidelines.

The corporate treasury has outlined three clear conditions under which the specialized program could be terminated ahead of schedule. The open-market buying machinery will halt if the maximum target of 1.548 billion shares has been entirely reabsorbed, if the allocated capital pool runs completely dry, or if the board of directors issues an official public notice declaring the program completed prior to the mid-September deadline.

Execution Framework

To streamline the execution of the transaction, the firm intends to purchase these blocks gradually or through structured volume pools directly on the exchange floor. The company will also select a single exclusive brokerage firm to manage and route the market orders throughout the duration of the buyback.

The regulatory architecture for this buyback falls squarely under the newly updated compliance framework of POJK Number 13 of 2023 and POJK Number 29 of 2023, which dictate transparency guidelines, volume caps, and pricing bands to prevent artificial market manipulation. By utilizing these state-sanctioned stability protocols, the enterprise aims to balance short-term market anxiety with its broader industrial ambitions to position Indonesia as the leading refining hub for clean-tech hardware in Southeast Asia.