BTN Considers Share Buyback, Citing Undervalued Price

PT Bank Tabungan Negara Tbk (BTN) is reviewing the option of buying back its shares on the stock exchange, as the current price of BBTN shares is considered undervalued. The proceeds from the buyback would be allocated for employee stock ownership programmes.

BTN President Director Nixon LP Napitupulu stated that this method is being considered because the public float of BBTN shares is currently at the minimum regulatory threshold. “Currently, the BBTN share price is quite undervalued, so a possibility we can review is purchasing shares for employee programme needs such as bonuses or stock options,” Nixon said in a statement on Wednesday, 24 June 2026.

Nixon noted that the buyback plan has not yet been included in the Bank’s Business Plan. The company will conduct further studies to potentially incorporate the plan into a revised Business Plan.

Previously, Chief Operating Officer of Danantara Indonesia, Dony Oskaria, assessed that buybacks are a normal corporate action, particularly when a share price is deemed not to reflect the company’s fundamentals. “Buyback is actually a normal process. 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 strong,” Dony said.

According to Dony, many state-owned enterprises have solid business fundamentals, including those in the banking, mining, infrastructure, and other business development sectors. Therefore, companies with strong 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 in the process of purchasing a loan portfolio from PT Bank SMBC Indonesia Tbk. In an information disclosure to the Financial Services Authority on Monday (25/5), BTN announced it had signed two agreements for the transfer of pension loans, pre-retirement loans, and active employee loans of state-owned enterprises or government institutions owned by Bank SMBC Indonesia. The signing took place on 22 May 2026 through a Conditional Portfolio Transfer Agreement and a Conditional Loan Asset Transfer Agreement. In the CPTA transaction, BTN will acquire pension and pre-retirement loan portfolios with pension benefits managed by TASPEN, with an estimated value of IDR 12.58 trillion.