Betting on Himself: Tycoon Boy Thohir Launches $256 Million Buyback to Shore Up Indonesian Markets
Key Takeaways
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JAKARTA, Investortrust.id — Standing before the white marble facade of the At-Thohir Mosque on Monday, Garibaldi “Boy” Thohir looked less like a coal titan and more like a market stabilizer. The President Director of PT Alamtri Resources Indonesia Tbk (ADRO) used the occasion of a charitable event for orphans to deliver a potent message to the Jakarta financial district: he is doubling down on Indonesia’s capital markets.
Thohir announced that Alamtri, the diversified natural resources giant formerly known as Adaro Energy, is seeking a massive share buyback of up to Rp4 trillion (approximately $256 million). The move is a calculated attempt to inject liquidity into a market often buffeted by the shifting winds of global interest rates and commodity volatility.
This maneuver serves as a crucial barometer of the Indonesian private sector’s resilience under the new administration of President Prabowo Subianto. As a member of an elite circle of tycoons who recently advised the President at his Hambalang residence, Thohir’s push to "strengthen the capital market" is more than a corporate decision—it is a strategic alignment with the state’s broader goal of fostering domestic investor participation and shielding the local exchange from external shocks.
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Signaling Fundamental Strength
"I believe ADRO shares and the Indonesian capital market have excellent long-term prospects," Thohir remarked following the event in Cimanggis, West Java. The tycoon emphasized that the buyback reflects a deep-seated conviction that the current market price does not fully reflect the conglomerate’s intrinsic value.
The repurchase plan, disclosed to the Indonesia Stock Exchange (IDX) on March 11, adheres to the latest Financial Services Authority (OJK) regulations. If approved during the Annual General Meeting of Shareholders (RUPST) on April 17, the program will span a 12-month period. Under current Indonesian law, a company’s treasury shares cannot exceed 10% of its total paid-up capital, and the buyback must not compromise the firm’s net wealth or mandatory reserves.
A Cash-Rich Fortress
Market analysts often worry that massive buybacks can strain a company’s balance sheet, especially in capital-intensive sectors like mining and infrastructure. However, Alamtri’s management has been quick to reassure the street. The company stated that the buyback would be funded entirely through internal cash flow and retained earnings, ensuring that day-to-day operations and ambitious expansion plans into green energy and logistics remain unhampered.
The strategy appears to be a continuation of a long-term trend. Between June 2025 and February 2026, the company successfully repurchased 556.19 million shares. As of the end of February, Alamtri’s treasury stock totaled 589.19 million shares, representing roughly 2.005% of its issued capital.
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Navigating Market Headwinds
The announcement comes at a time of moderate turbulence for the energy sector. On Monday’s close, ADRO shares slipped Rp40 (1.61%) to finish at Rp2,440 (approximately $0.16). The planned buyback is expected to provide a "floor" for the stock price, offering a more attractive return for shareholders while signaling to the broader market that the company's leadership views any price dips as a buying opportunity.
As a holding company, Alamtri’s tentacles reach into nearly every facet of the Indonesian supply chain—from port services and logistics to power generation and agriculture. By aggressively repurchasing its own equity, Thohir is essentially betting that the cornerstone of the Indonesian economy is currently undervalued by the world.