Encouraged by Danantara, BTN Explores Share Buyback Option, Eyes Business Plan Revision
PT Bank Tabungan Negara (Persero) Tbk (BBTN) has signalled it is open to the possibility of a share buyback. The move aligns with encouragement from Danantara to create value for shareholders amid the company’s solid fundamental condition.
BTN President Director Nixon LP Napitupulu stated that the buyback option would be directed towards supporting employee share ownership. This method is being considered because the public share portion in BBTN is currently at the minimum regulatory threshold.
“Currently, BBTN’s share price is quite undervalued, so the possibility we can study is purchasing shares for employee programme needs such as bonuses or stock options. At present, this is not included in the Bank’s Business Plan [RBB], but we will try to study it for inclusion in the RBB revision,” Nixon explained in Jakarta this week.
Previously, Danantara Indonesia Chief Operating Officer Dony Oskaria assessed that a buyback is a normal corporate action, particularly when the share price is deemed not to reflect the company’s fundamentals.
“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 indeed strong,” Dony 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 itself is currently strengthening its business fundamentals through organic and inorganic growth strategies. Most recently, the company is processing the purchase of a portfolio of assets 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 pensioner loans, pre-pensioner 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) scheme.
Under the CPTA transaction, BTN will acquire a portfolio of pensioner and pre-pensioner 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 for both state-owned enterprises and government institutions, with an estimated value of Rp7.34 trillion.
Bahana Sekuritas analyst Razqi M Kurniawan assessed that the asset purchase plan has the potential to create significant added value for BTN without causing dilution to shareholders. The portfolio acquisition is also considered capable of addressing a number of BTN’s structural challenges through the addition of assets with more attractive yields, more controlled credit risk, and asset profiles with shorter durations.