Astra Agro Lestari Prepares Share Buyback of up to Rp400 Billion

PT Astra Agro Lestari Tbk (AALI) plans to conduct a share buyback valued at a maximum of Rp400 billion. This move is intended to increase value for shareholders while supporting government efforts to maintain stability and confidence in the Indonesian capital market.

Citing information disclosure from the Indonesia Stock Exchange (IDX), because the company is utilising a scheme for fluctuating market conditions, it may conduct the buyback without approval from the General Meeting of Shareholders (RUPS), while remaining within applicable limits.

“The share buyback is expected to stabilise the share price during volatile market conditions, in addition to providing confidence to investors regarding the fundamental value of the Company’s shares,” management wrote, as reported on Friday (2/10/2026).

This corporate action also provides AALI with flexibility in managing long-term capital, as treasury shares can be resold in the future at an optimal value should the company require additional capital.

The company stated that all funds are sourced from internal cash, rather than loans or public offerings. The Rp400 billion figure does not include broker fees and other related costs.

The implementation of the buyback is scheduled to run from 2 October 2026 to 28 December 2026, in accordance with the regulation that a buyback can only be conducted for a maximum of three months after the information disclosure.

The company may terminate the programme early if the period ends, the funds spent reach Rp400 billion, or if the company decides to halt it. If the funds are not fully utilised, the company may initiate a new buyback after this period ends, subject to applicable regulations.

From a financial perspective, consolidated financial performance as of 30 June 2026 shows a relatively small impact. Net profit for the period remained at Rp1.1 trillion. Total assets decreased by Rp0.4 trillion from Rp28.9 trillion to Rp28.5 trillion, and total equity decreased by the same amount from Rp24.6 trillion to Rp24.2 trillion. Earnings per share actually rose slightly from Rp571 to Rp575 due to the reduction in the number of outstanding shares.

The company emphasised that there have been no significant changes to its financial indicators and remains confident that its capital and cash flow are sufficient to fund the buyback, business operations, and development plans.