40 Issuers Launch Massive Buybacks, Trillions Readied to Support Prices

The Jakarta Composite Index (IHSG) has plummeted this year from its peak of 9,174.47 to touch 5,902.38 at Wednesday’s close, marking a 32% decline and making it the world’s worst-performing index since the start of 2026. In response, the Financial Services Authority (OJK) has reported that 65 issuers on the Indonesia Stock Exchange (IDX) are conducting share buybacks without requiring approval from a General Meeting of Shareholders (RUPS). The total allocated funds for these corporate actions amount to Rp65.34 trillion.

Hasan Fawzi, Chief Executive of Capital Market, Derivatives, and Carbon Exchange Supervision at OJK, noted that the realisation of these buyback plans has so far reached only 30%, equivalent to Rp17.12 trillion executed by 64 issuers. The policy is based on POJK Number 13 of 2023, which grants issuers the flexibility to repurchase shares up to a maximum of 20% of paid-up capital, particularly during periods of significant market fluctuation.

Share buybacks serve as an instrument facilitated by the regulator to provide issuers with greater flexibility in managing their capital structure. The move is typically used by management to signal confidence in the company’s fundamental prospects and business continuity. OJK stated it will continue to monitor market activities closely to ensure all processes are conducted fairly, efficiently, and transparently.

Among the detailed allocations, PT Astra International Tbk (ASII) recorded the largest maximum allocation at Rp8 trillion, followed by PT Bank Central Asia Tbk (BBCA) with Rp5 trillion. PT Telkom Indonesia (Persero) Tbk (TLKM), PT Alamtri Resources Indonesia Tbk (ADRO), and PT Jaya Real Property Tbk (JRPT) each allocated Rp4 trillion.