Eighteen Indonesian Companies Announce Share Buybacks Without Shareholder Approval
Main Takeaways
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JAKARTA, investortrust.id – In response to ongoing market instability, eighteen publicly listed companies in Indonesia have announced plans to repurchase their shares without holding shareholder meetings. The total allocation for these buybacks has reached Rp 14.12 trillion, or approximately $897 million, as companies move to stabilize their stock prices over the next three months.
The Financial Services Authority of Indonesia, known locally as Otoritas Jasa Keuangan or OJK, issued the regulatory directive on Tuesday, March 19, 2025. Citing Article 2(g) of OJK Regulation No. 13 of 2023, the authority granted exemptions from the usual requirement for an Extraordinary General Meeting of Shareholders (EGMS) due to significant market volatility. The exemption followed a 21.28% decline in the Jakarta Composite Index (IHSG), which had lost 1,682 points from its recent peak on September 19, 2024, through March 18, 2025.
“Given the current market conditions, OJK has officially classified the situation as significantly volatile,” said Inarno Djajadi, Chief Executive of Capital Market, Derivatives, and Carbon Exchange Supervision at OJK.
The policy was communicated to all listed companies through an official letter dated March 18, following a stakeholder meeting on March 3 aimed at restoring market confidence and easing downward pressure on equities.
Market Reacts Favorably
Based on official disclosures from the Indonesia Stock Exchange, or BEI, a total of 18 companies have submitted buyback plans under the new exemption. The largest share of the buyback funds has been committed by companies affiliated with Indonesian conglomerate Prajogo Pangestu.
Within his group, PT Barito Renewables Energy Tbk (BREN) and PT Chandra Asri Pacific Tbk (TPIA) have each allocated Rp 2 trillion, with buybacks set to begin on Monday, June 23. Two other group companies—PT Petrindo Jaya Kreasi Tbk (CUAN) and PT Barito Pacific Tbk (BRPT)—have each prepared Rp 500 billion for similar purposes.
Tech and consumer-focused firms have also made significant commitments. PT Bukalapak.com Tbk (BUKA), one of Indonesia’s leading e-commerce platforms, has earmarked Rp 1.9 trillion. Beverage company PT Ultra Jaya Milk Industry Tbk (ULTJ) has committed Rp 1.67 trillion, while PT Mayora Indah Tbk (MYOR), PT Bank Central Asia Tbk (BBCA), and PT Bangun Kosambi Sukses Tbk (CBDK) have each set aside Rp 1 trillion for buybacks.
State Banks and Others Follow with Shareholder Approval
Beyond the 18 companies using the OJK exemption, several state-owned banks have also announced share buybacks but opted to obtain prior shareholder approval. These include PT Bank Rakyat Indonesia Tbk (BBRI) with a Rp 3 trillion program, PT Bank Mandiri Tbk (BMRI) with Rp 1.17 trillion, and PT Bank Negara Indonesia Tbk (BBNI) with Rp 1.5 trillion.
Other companies have taken a similar route. Agribusiness giant PT Japfa Comfeed Indonesia Tbk (JPFA) is targeting a Rp 470 billion buyback, retail chain PT Matahari Department Store Tbk (LPPF) plans to repurchase Rp 150 billion worth of shares, and paint producer PT Avia Avian Tbk (AVIA) is aiming for Rp 1 trillion.