BRI Ready to Buy Back Shares Again: Here’s Why
Jakarta, CNBC Indonesia — A number of listed companies are once again carrying out share buy-backs amid heightened market volatility. This follows MSCI’s consideration of downgrading Indonesia’s stock market from emerging-market to standalone-market status, prompting declines in most shares, including blue chips.
The Financial Services Authority (OJK), through Letter No. S-112/D.04/2026 dated 9 September 2026, has extended the designation of significantly fluctuating market conditions until 31 December 2026. Under this designation, and in accordance with OJK Regulation No. 13 of 2023, public companies may buy back shares without first obtaining approval at a general meeting of shareholders.
Against this backdrop, it is unsurprising that listed companies are pressing ahead with buy-back plans. One of them is PT Bank Rakyat Indonesia (Persero) Tbk, or BBRI.
The bank is reportedly ready to buy back shares because it believes their price movements do not yet fully reflect the company’s fundamentals, performance and future business prospects.
BRI Corporate Secretary Dhanny said the company was ready to take part in a share buy-back. The plan forms part of the company’s strategy to safeguard its value and optimise value for shareholders.
“The plan also reflects BRI’s confidence in the company’s fundamentals and long-term business prospects, while maintaining adequate capital, applying prudential principles and good corporate governance, and complying with applicable regulations,” Dhanny said, as quoted on Tuesday (20 October 2026).
Meanwhile, Danantara Chief Executive Officer Rosan Roeslani previously said that fluctuations and a decline in the Jakarta Composite Index (JCI) below the 5,000 level could create long-term investment opportunities. Danantara is therefore open to gradually increasing its investments in the stock market, particularly in shares considered to have strong fundamentals and attractive valuations.
“We have reviewed our companies, and they are doing very well — they are very solid, and their valuations could now be described as very cheap. As investors, both in the capital market and in the state-owned enterprises we own, we see this as an opportunity to invest for the long term,” he said when met at the State Palace.
He said investment decisions were not based solely on share-price movements, but also took into account business prospects and companies’ long-term fundamental strength. Rosan cited the banking sector as having relatively healthy fundamentals.
In valuation terms, some banking shares are trading at price-to-book value (PBV) ratios below one. This means their share prices are below the companies’ book value.
As well as relatively low valuations, Rosan highlighted the dividend-return potential of banking shares. He cited a dividend yield of around 13% for PT Bank Rakyat Indonesia (Persero) Tbk (BBRI).
At that level, he said, investors could potentially earn income from dividend distributions without relying entirely on share-price increases.
BBRI share potential
Senior Market Analyst at PT Mirae Asset Sekuritas Indonesia, Nafan Aji Gusta, believes the decline in banking shares, including BBRI, is beginning to present accumulation opportunities for investors with a long-term outlook. Given the strength of its business fundamentals, BBRI also has significant potential to recover, making it unsurprising that investors are accumulating the shares.
“BBRI’s PBV has corrected to a relatively low level, which could make it attractive, particularly compared with its historical average. However, investors still need to monitor asset quality, credit growth, the trend in provisioning costs or cost of credit, and the company’s ability to maintain profitability amid challenging economic conditions,” he told CNBC Indonesia.
On dividends, he added that BBRI’s dividend yield could reach around 10%, which would be attractive to investors seeking passive income.
“Accordingly, long-term investors could consider accumulating BBRI gradually, particularly when its valuation is attractive and its dividend yield is competitive,” he said.