OJK Responds to State-Owned Bank Share Buyback Plans

The Financial Services Authority (OJK) has responded to the planned share buybacks by state-owned banks. Hasan Fawzi, Chief Executive of Capital Market, Derivative Finance, and Carbon Exchange Supervision at OJK, stated that the coordination and support demonstrated a shared commitment to maintaining capital market stability and strengthening investor confidence amid current market dynamics. He noted that many publicly listed companies possess strong fundamentals and well-maintained performance, supported by good operational performance, healthy financial positions, and positive business prospects. “In current depressed market conditions, investors will certainly conduct assessments based on reliable information, fundamental conditions, and current share price valuations,” he said in a written statement on Wednesday. OJK respects every corporate initiative undertaken in accordance with prevailing laws and regulations, including corporate actions such as share buybacks by listed companies. “In principle, a buyback can be one of the instruments used by listed companies to demonstrate confidence in the company’s prospects while providing flexibility in capital management,” he stated. He continued that to maintain market stability and boost investor confidence, OJK has taken various policy measures, including providing flexibility for share buybacks without a general shareholders’ meeting (RUPS) approval in significantly fluctuating market conditions, with a maximum amount of 20% of paid-up capital, as stipulated in POJK 13 of 2023. “This policy provides room for listed companies to show confidence in their performance and fundamentals, while helping to maintain share price stability,” he explained. He noted that from March 2025 to 18 May 2026, there were 106 information disclosures regarding buybacks without a RUPS from 65 listed companies, with a total buyback fund allocation of Rp65.34 trillion. Of these 65 companies, 64 have executed buybacks with a realised value of Rp17.12 trillion, or 30.25%. Furthermore, there are currently 7 listed companies still within the buyback period without a RUPS, with an estimated value of Rp5.76 trillion. Going forward, OJK will continue to closely monitor and respond to market developments and ensure all capital market activities proceed in an orderly, fair, efficient, and transparent manner. “OJK will also continue to strengthen coordination with all stakeholders to maintain market stability, enhance investor confidence, and encourage the sustainable deepening of Indonesia’s capital market,” he concluded.