TOBA Plans Rp 586 Billion Buyback as KB Bank Asset Swap Signals Deeper Ties

JAKARTA, Investortrust.id — PT TBS Energi Utama Tbk or TOBA plans a share buyback of up to Rp 586.27 billion on Friday, Dec 26, 2025 in Jakarta to respond to market volatility that management says has pushed the stock price below its fundamental value, while maintaining strategic financial cooperation with PT Bank KB Indonesia Tbk or BBKP.

The buyback will cover as many as 825.74 million shares, equivalent to about 10 percent of the company’s issued and paid-up capital, based on disclosures filed with the Indonesia Stock Exchange.

The buyback period is scheduled to run for three months from Dec 24, 2025 until March 24, 2026, with the allocated funds already including transaction fees, brokerage costs, and other related expenses.

“Entire funds for the share buyback will be sourced from the company’s internal cash balance and will not significantly affect the company’s financial capacity to meet its maturing obligations,” TOBA management said in its disclosure.

The estimated buyback budget was calculated using TOBA’s closing share price of Rp 710 per share on Dec 23, 2025.

“However, if the share price at the time of execution differs from the reference price, the allocated funds will be adjusted to the prevailing market price on the exchange in accordance with applicable regulations,” management said.

TOBA said the buyback plan was implemented in response to significantly fluctuating capital market conditions that risked distorting the company’s valuation.

“These conditions may cause the company’s share price not to reflect its true fundamental value, even though operational performance and financial conditions remain healthy and stable,” the company said.

Through the buyback, TOBA said it aimed to maintain investor confidence, provide flexibility in managing its capital structure, enhance long-term shareholder value, and support share price stability amid unfavorable market conditions.

Separately, TOBA has also been involved in an asset swap transaction with KB Bank as part of the lender’s ongoing balance sheet transformation.

Under the agreement, KB Bank exchanged written-off, non-productive loan assets for sukuk issued as productive assets with TOBA.

“This initiative shows our commitment to consistently improving the bank’s fundamentals,” said KB Bank Credit Director Henry Sawali.

“By replacing non-productive assets with more stable instruments that have the potential to generate returns, KB Bank is building a strong foundation to support sustainable growth,” Henry said.

KB Bank said the asset swap allowed it to recover non-performing assets while increasing the proportion of productive assets, opening wider room for net interest margin expansion and long-term profitability.

“Transformation at KB Bank is not only about recovery, but about creating healthy and sustainable growth,” Henry said.

The transaction underscored growing financial ties between TOBA and KB Bank, linking TOBA’s capital market strategy with KB Bank’s broader effort to strengthen asset quality and competitiveness.