OJK extends share buyback policy without GMS approval until June 2027

Jakarta (ANTARA) — The Financial Services Authority (OJK) has announced that it will extend its policy allowing share buybacks without approval from a General Meeting of Shareholders (GMS) until June 2027. The policy had previously been set to remain in force only until December 2026.

“The period for the share buyback policy without GMS approval, originally set to run until the end of this year, will be extended until June 2027,” said Hasan Fawzi, OJK’s Chief Executive for Capital Markets, Derivatives Finance and Carbon Exchanges, at a press conference at the Indonesia Stock Exchange (IDX) in Jakarta on Monday.

Hasan said the move was intended to give issuers that are carrying out or wish to launch share buyback programmes more time to do so. He added that the policy was also adopted in response to requests from issuers in Indonesia’s capital market.

However, Hasan stressed that buybacks must comply with OJK Regulation No. 13 of 2023, with the aim of strengthening stability and investor confidence in Indonesia’s capital market.

He also said buybacks must follow the provisions of OJK Regulation No. 29 of 2023, particularly Articles 6, 9 and 14.

“We also stress that the implementation of buybacks must not disregard the obligation to meet the minimum free-float requirement. This is not contradictory to our strong intention to continue encouraging an increase in share free float, as stipulated in exchange regulations,” Hasan said.