Kalbe Farma Is Unleashing a $31.4M Share Buyback After 36% Stock Plunge

JAKARTA, Investortrust.id — PT Kalbe Farma Tbk (KLBF), Southeast Asia's largest publicly listed pharmaceutical manufacturer, is deploying up to Rp 500 billion ($31.45 million) in internal cash reserves to launch a share buyback program.

The company announced the three-month repurchasing scheme in an official corporate disclosure submitted to the Indonesia Stock Exchange (BEI) on Wednesday, Sept. 16, 2026. The buyback window opens on Sept. 17, 2026, and concludes on Dec. 17, 2026.

Indonesian healthcare equities have faced intense selling pressure amid elevated global risk premiums and broader market rotations, with Kalbe Farma tumbling over 36% year to date. Tapping a robust corporate balance sheet to retire undervalued equity serves as a strong signal to institutional investors that internal management sees a stark disconnect between market pricing and fundamental enterprise value.

Execution Terms and Capital Impact

The company confirmed that the share repurchase program will be funded entirely through internal cash flows rather than external debt facilities. Open-market transactions will execute on the domestic bourse via appointed broker-dealers.

Transaction overhead, including brokerage commissions and related exchange levies, is capped at a maximum of 0.1% of the total repurchase value. Management projects that the cash deployment will result in a decrease in interest income of roughly Rp 8.4 billion ($528,300) once the buyback window closes, an impact the board classified as immaterial to overall financial health.

From an earnings standpoint, the reduction in outstanding shares will enhance shareholder value. Assuming full execution of the Rp 500 billion allocation, Kalbe Farma projects pro forma earnings per share (EPS) to increase to Rp 81.44, up from the Rp 80.51 recorded for the fiscal year ended Dec. 31, 2025.

Regulatory Framework and Price Defense

Under the plan, repurchases will take place at prices deemed fair by the board while strictly adhering to Financial Services Authority guidelines under POJK No. 13/2023 and POJK No. 29/2023, along with prevailing capital market laws.

Company leadership noted that the program aims to bolster investor confidence in the company's underlying fundamentals during periods of cyclical equity weakness. Repurchased shares held in treasury will provide long-term balance-sheet flexibility, allowing the board to re-issue or transfer the equity down the road to optimize capital structure.

Market trading reflected continued caution ahead of the rollout. During the first trading session on Wednesday, Sept. 16, 2026, shares of KLBF slipped 5 points or 0.65% to trade at Rp 765 ($0.048) by 10:05 AM Jakarta time, bringing the stock's year-to-date contraction to 36.51%.