Dasco Reveals Reasons for State Bank Share Buybacks: Strong Economic Fundamentals

Deputy Speaker of the Indonesian House of Representatives (DPR RI), Sufmi Dasco Ahmad, stated that banks within the Association of State Banks (Himbara) are conducting share buybacks because both state-owned enterprises (BUMN) and the private sector possess strategic projects with strong fundamentals. Furthermore, he noted that capital market prices had recently experienced a decline, making the buyback effort a strategic move. “Essentially, BUMNs and private companies with strategic projects have strong fundamentals. For example, BUMNs or Himbara members conducting buybacks, or institutions engaging in investment and the market, naturally see this as highly strategic,” Dasco said at the parliament complex in Senayan, Jakarta, on Thursday, 11 June 2026. He also expressed no objection to investors purchasing private sector shares, as long as it is conducted through market mechanisms, noting that private share prices are also currently declining. “Including strategic national private companies, as long as the purchase is through market mechanisms, I don’t see any issue. Please go ahead and buy them,” he stated. Previously, the Chair of the Board of Commissioners of the Financial Services Authority (OJK), Friderica Widyasari Dewi, known as Kiki, opined that the Indonesia Composite Index (IHSG) is currently at an attractive level, supported by lower valuations compared to historical periods and regional markets, as well as improved issuer performance. During a working meeting with Commission XI, Kiki noted that the IHSG movement is also increasingly convergent with global benchmark indices issued by MSCI and FTSE Russell. This condition indicates that the market is beginning to respond positively to various reform measures undertaken by capital market regulators, particularly in addressing key issues of concern to stakeholders, including global index providers. Additionally, issuer performance in the first quarter of 2026 showed a positive trend. Improved company revenues and profitability are seen as providing fundamental support for the prospects of the domestic stock market going forward. Kiki also conveyed that the structure of Indonesia’s capital market continues to demonstrate strong resilience, bolstered by a domestic investor base, particularly retail investors, which continues to grow.