BBRI Plans $183m Share Buyback
JAKARTA, investortrust.id – PT Bank Rakyat Indonesia Tbk, or BBRI, has announced plans to conduct a share buyback worth up to $183 million over the next year, pending shareholder approval.
“The buyback will be carried out as part of an employee stock ownership program, aimed at strengthening employee engagement and supporting the company’s long-term performance,” BBRI stated in its official announcement to the Indonesia Stock Exchange (IDX) on Friday, Jan 31, 2025.
The lender said it sought to allocate Rp 3 trillion ($183 million) from the company’s internal cash reserves to fund the program.
Approval and Implementation Timeline
BRI’s management clarified that the buyback will proceed only after securing shareholder approval at the Annual General Meeting (AGM) scheduled for March 11, 2025.
According to the bank, the buyback period is set to commence on March 12, 2025, and is expected to conclude by March 11, 2026. The number of shares repurchased will not exceed 10% of the company’s issued capital.
Despite the scale of the buyback, BRI’s management assured that the initiative would not have a significant impact on operational expenses. Instead, the program is expected to enhance business sustainability and employee involvement, ultimately contributing to the bank’s growth.
BRI UMKM EXPO(RT) and BRI Microfinance Outlook 2025 officially opened at ICE BSD City, Tangerang, on Thursday, Jan 30, 2025. The event, featuring 1,000 selected MSMEs, will run until Sunday, Feb 2, 2025.
Analyst Recommendations: Strong Buy
BBRI shares rose 2.68% to Rp 4,220 throughout January 2025. The stock also attracted strong foreign investor interest, with a net buy of Rp 287.04 billion recorded in the first month of the year.
Several leading securities firms have maintained a "buy" recommendation for BBRI, with a target price of Rp 6,000 per share.
Several leading securities firms have maintained a "buy" recommendation for BBRI, with a target price of Rp 6,000 per share. Sucor Sekuritas reiterated its long-term positive outlook on BBRI, citing strong fundamentals and sustained growth potential.
Similarly, Sinarmas Sekuritas highlighted that the current price dip presents an attractive buying opportunity for investors. Meanwhile, Mandiri Sekuritas also maintained a buy rating, noting that BRI’s bank-only net profit grew 4% through November 2024, supporting its Rp 6,000 target price.
With the upcoming share buyback and solid market outlook, BBRI remains a top pick among state-owned bank stocks, with analysts expecting continued growth and investor interest in 2025.