Indonesian corporations initiate major share buybacks

Several major Indonesian companies have announced significant share buyback programs to support stock prices and shareholder value amid market fluctuations.

Conglomerate Prajogo Pangestu is overseeing a total buyback allocation of Rp3.5 trillion across four Barito Group entities: PT Barito Renewables Energy Tbk (BREN), PT Barito Pacific Tbk (BRPT), PT Petrindo Jaya Kreasi Tbk (CUAN), and PT Chandra Asri Pacific Tbk (TPIA). These actions follow administrative fines totaling Rp2.1 trillion imposed by the Financial Services Authority (OJK) on DSSA, BREN, and CUAN for alleged securities trading violations.

Other notable corporate actions include PT Telkom Indonesia (Persero) Tbk accelerating its buyback program with a remaining budget of over Rp3 trillion out of a maximum Rp4 trillion allocation. Additionally, PT Bank Negara Indonesia (Persero) Tbk (BNI) is continuing its buyback program, citing strong business fundamentals and asset growth.

In the banking sector, Bank Mandiri has provided a credit facility to Jhonlin Baratama, utilizing shares from PT Jhonlin Agro Raya Tbk (JARR) and PT Pradiksi Gunatama Tbk (PGUN) as additional collateral to support real sector financing.