BCA Allocates $61 Million for Share Buyback to Stabilize Stock Amid Market Volatility

JAKARTA, investortrust.id — Indonesia’s largest private bank by market value, PT Bank Central Asia Tbk has allocated Rp 1 trillion, or around $61 million, to buy back its shares over the next three months as part of efforts to support its stock price during a period of high market volatility.

In a disclosure submitted to the Indonesia Stock Exchange on Tuesday, March 25, 2025, Bank Central Asia, or BBCA, stated that the buyback program will begin on Wednesday, March 26 and continue through June 24, 2025. The repurchase will be carried out at a price the company deems reasonable, with a maximum buyback price set at Rp 9,200 per share.

BBCA’s management explained that the move is designed to stabilize the bank’s share price amid turbulent market conditions, while also aiming to boost investor confidence.

Sucor Sekuritas, an Indonesian brokerage firm, maintained its buy recommendation on BBCA shares in its latest research report, setting a target price of Rp 11,500. The target implies a price-to-earnings (PE) ratio of approximately 5 times for 2025, reflecting moderate net profit growth prospects for the bank.

Sucor forecast BBCA’s net profit to grow 6.3% this year to Rp 58.3 trillion, or about $3.7 billion, and continue rising to Rp 62.2 trillion in 2026.

Similarly, BRI Danareksa Sekuritas also reaffirmed a buy rating for BBCA, with a target price of Rp 11,900. The brokerage based its outlook on the bank’s standalone net profit growth of 8% year-on-year to Rp 8.97 trillion by February 2025.

Verdhana Sekuritas echoed the sentiment, maintaining a buy call on BBCA shares and projecting a target price of Rp 12,600. This valuation was derived using a DuPont analysis with assumptions including a 6.5% risk-free rate, 7.8% equity risk premium, beta of 0.8, and a capital adequacy ratio (CAR)-adjusted return on average equity (ROAE) of 24.5%. The projection implies a price-to-book (PB) ratio of approximately 5.4 times.