BTN Considers Buyback as Share Price Deemed Undervalued
The President Director of PT Bank Tabungan Negara (Persero) Tbk, or BTN, Nixon LP Napitupulu, stated that the company is currently reviewing a share buyback because the BBTN share price is considered undervalued. The results of the buyback would be allocated towards a share ownership programme for employees.
Nixon noted that this method is being considered because the proportion of public shares in BBTN has reached the minimum regulatory limit. “Currently, the BBTN share price is quite undervalued, so what we may consider is purchasing shares to meet employee needs, such as bonuses or stock options,” he said in a statement received in Jakarta on Tuesday, 23 June 2026.
At present, Nixon added, the buyback plan has not yet been included in the Bank’s Business Plan (RBB). The company will further review the possibility of including this plan in a revision of the RBB.
Chief Operating Officer (COO) of Danantara Indonesia, Dony Oskaria, previously assessed that a buyback is a reasonable corporate action, particularly when the share price does not yet reflect the company’s fundamentals. “If we see our shares are too low, it can certainly be an option. Rather than investing elsewhere, it is better to invest in our own company’s shares if the fundamentals are indeed strong,” he said.
According to Dony, several State-Owned Enterprises (SOEs) possess solid business fundamentals, including the banking, mining, and infrastructure sectors, as well as other business developments. Therefore, companies with good fundamentals have the potential to continue creating value for shareholders.
BTN is currently strengthening its business fundamentals through organic and inorganic growth strategies. Most recently, the company is processing the acquisition of an asset portfolio from PT Bank SMBC Indonesia Tbk.
In a disclosure to the Financial Services Authority (OJK) on Monday (25/5), BTN signed two transfer agreements regarding pensioner loans, pre-pensioner loans, and active employee loans for SOEs or government agencies under Bank SMBC Indonesia.
The signing took place on 22 May 2026, through the Conditional Portfolio Transfer Agreement (CPTA) and Conditional Loan Asset Transfer Agreement (CLATA) schemes. Under the CPTA transaction, BTN will acquire a portfolio of pensioner and pre-pensioner loans with pension benefits managed by TASPEN, with an estimated value of IDR 12.58 trillion.
Meanwhile, through the CLATA transaction, BTN will acquire loan assets related to ASABRI pensioners, other pension funds, and loans for active employees of both SOEs and government agencies, with an estimated value of IDR 7.34 trillion.