BNI to Execute Share Buyback Worth Rp 905 Billion
Jakarta — PT Bank Negara Indonesia (Persero) Tbk (BBNI) has received shareholder approval to undertake a share buyback programme valued at up to Rp 905.48 billion.
The transaction value, approved at the bank’s General Meeting of Shareholders, does not exceed 10 per cent of BBNI’s issued capital and will be funded from free cash flow sourced from retained earnings. Transaction costs, including trading fees, custody charges, and a commitment fee of approximately 0.32 per cent of the buyback execution value, are included in the total amount.
BNI’s management cited several factors for the buyback decision. Indonesian banking shares have faced significant pressure throughout 2025, driven by global uncertainty stemming from geopolitical risks and trade war threats, whilst the domestic banking sector confronts liquidity challenges and slowing loan demand. Consequently, Indonesian banking shares have underperformed relative to regional bank peers.
As of 31 December 2025, BNI’s share price had risen only 0.5 per cent year-on-year, trailing regional competitors despite performing better than local peers.
Despite global sentiment headwinds, management expects BNI to deliver positive performance growth with resilient fundamentals, including strong capital positions, sound asset quality, balanced credit growth across all segments, and solid low-cost funding growth supported by digital transformation and branch expansion.
The bank warned that escalating geopolitical conflicts and ongoing trade tensions could create inflationary pressure from currency depreciation and potentially weigh on the Jakarta Stock Exchange, including banking shares.
“The buyback is intended to help reduce selling pressure in the market when the share price index is fluctuating, whilst signalling to investors that the company views current share prices as not reflective of the company’s fundamentals,” management stated.
Since the buyback will utilise free cash flow, it will result in reductions to assets and equity. However, management expects the impact on BNI’s operating expenses to be immaterial, with profit and loss figures expected to remain aligned with targets.
The General Meeting of Shareholders is scheduled for 9 March 2026 to approve the corporate action. The buyback execution period is expected to commence on 9 March 2026 and conclude on 8 March 2027.
Following completion of the buyback, the repurchased shares will be redeployed through resale either on the Jakarta Stock Exchange or off-market, and/or through employee and management share ownership programmes. Share redeployment can only occur 30 days after full buyback completion.