BSI’s Planned Rp500bn Share Buyback Could Erode Free Float, Chief Says

Jakarta, CNBC Indonesia — PT Bank Syariah Indonesia (Persero) Tbk (BRIS), or BSI, has acknowledged that its planned share buyback could reduce its free float. BRIS shares currently have a free float of 9.91%, well below the new requirement of 15%.

BSI President Director Anggoro Eko Cahyo confirmed that the corporate action could lower the company’s free float. However, he said the buyback was necessary because BRIS shares were considered undervalued.

“That is indeed one consequence. But if we look at the situation now, we want to show the market that BSI’s share price should not be at that level,” Anggoro said after the fourth CEO Lecture at Perbanas Institute in South Jakarta on Wednesday (28 October 2026).

He said BSI was conducting the buyback to show investors that BRIS shares were trading below their underlying value.

“We want to show the market and minority shareholders that we are confident BSI’s shares should not be at that level. So, it’s fine for us to go ahead with the buyback. That’s not a problem,” Anggoro said.

BSI will also conduct a rights issue to meet the 15% free-float requirement. Anggoro said the state-owned bank would soon hold an extraordinary general meeting of shareholders (EGMS) to seek approval.

“We will have a rights issue, and we will hold an EGMS,” he said. He declined to disclose how much the bank intended to raise through the rights issue.

BSI recently announced plans for a share buyback amid volatile market conditions. In a disclosure to the Indonesia Stock Exchange (IDX), the management estimated the buyback would be worth up to Rp500 billion, including transaction fees and other related costs. The funds will come from the company’s internal cash.

BSI’s EGMS is scheduled for 6 November 2026. The proposed second-stage capital increase through a rights issue, or pre-emptive rights offering (HMETD), would involve the issuance of up to 6.8 billion Series B shares with a nominal value of Rp500 per share.

Anggoro said the corporate action was intended to strengthen financing at the state-owned Islamic bank, where financing growth remains high at 16%. Although BSI’s funding remains strong, with third-party funds growing by 15%, he said the bank still needs a healthy funding structure.

The second rights issue is also intended to meet the minimum free-float requirement of 15%. Anggoro said he hoped BRIS shares would eventually be included in the LQ45 index. “We hope to meet the free-float requirement and eventually be on a par with the LQ45,” he said recently.