BTN Considers Share Buyback, Sees Current Price as Undervalued

State-owned bank PT Bank Tabungan Negara (Persero) Tbk (BTN) is considering a share buyback, with the repurchased shares to be allocated for employee programmes such as bonuses or stock options.

BTN President Director Nixon LP Napitupulu stated that this method is being considered as the public float of BBTN shares is currently at the minimum regulatory threshold.

“Currently, the price of BBTN shares is quite undervalued, so a possibility we can examine is purchasing shares for the needs of employee programmes like bonuses or stock options,” Nixon said in a statement received in Jakarta on Tuesday.

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

“A 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,” he said.

According to Nixon, many state-owned enterprises possess solid business fundamentals, including those in the banking, mining, infrastructure, and other development sectors. Therefore, companies with strong fundamentals have the potential to continue creating value for shareholders.

BTN is currently strengthening its business fundamentals through both organic and inorganic growth strategies.