Dasco says Himbara banks conducting share buybacks due to strong fundamentals

Deputy Speaker of the Indonesian House of Representatives (DPR RI) Sufmi Dasco Ahmad has stated that banks within the State-Owned Banks Association (Himbara) are conducting share buybacks because state-owned enterprises (BUMN) and the private sector have strategic projects with strong fundamentals. He further noted that capital market prices were experiencing a decline some time ago, making the buyback efforts a strategic move. “For example, BUMN or Himbara then conduct buybacks, or investment institutions and the market certainly see that as very strategic,” Dasco told reporters at the parliamentary complex in Jakarta on Thursday. He also had no issue with investors purchasing shares in private companies, as long as it is conducted through market mechanisms, noting that private sector stock conditions are also currently experiencing a decline. “Including strategic national private companies, as long as the purchases are made through market mechanisms, I see no problem. Please go ahead and buy them,” he said. Previously on Tuesday, the Indonesia Stock Exchange (BEI) Composite Stock Price Index (IHSG) closed stronger, triggered by plans for a buyback programme for large-capitalisation BUMN shares and an increase in the Bank Indonesia (BI) benchmark interest rate. “The discussion and plan to buy back big-cap shares such as those of Himbara members is the main sentiment,” said Infovesta Kapital Advisori Research Analyst Arjun Ajnawi.