BTN Considers Buyback as Share Price Deemed Undervalued

PT Bank Tabungan Negara (Persero) Tbk (BTN) is considering a share buyback scheme. BTN President Director Nixon LP Napitupulu stated that the buyback would be allocated for an employee share ownership programme. Nixon said this method is being considered because the current portion of public shares in BBTN is at the minimum regulatory limit. “Currently, BBTN’s share price is quite undervalued, so the possibility we can review is purchasing shares for employee programme needs such as bonuses or stock options,” he said in a statement received in Jakarta on Tuesday (23/6/2026), quoted from Antara. Nixon said the buyback plan has not yet been included in the Bank’s Business Plan (RBB). The company will conduct further studies to include the 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, especially 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, a number of state-owned enterprises have solid business fundamentals, including the banking, mining, infrastructure, and other business development sectors. 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 purchase of asset portfolios from PT Bank SMBC Indonesia Tbk. In an information disclosure to the Financial Services Authority on Monday (25/5), BTN signed two transfer agreements for pension loans, pre-retirement loans, and active employee loans for state-owned enterprise or government institution employees owned by Bank SMBC Indonesia. The signing took place on 22 May 2026 through a Conditional Portfolio Transfer Agreement (CPTA) and a Conditional Loan Asset Transfer Agreement (CLATA). In the CPTA transaction, BTN will acquire a portfolio of pension and pre-retirement loans with pension benefits managed by TASPEN, with an estimated value of Rp12.58 trillion. Meanwhile, through the CLATA transaction, BTN will acquire loan assets related to ASABRI pensioners, other pension funds, and active employee loans from both state-owned enterprises and government institutions, with an estimated value of Rp7.34 trillion.