On Himbara Share Buyback, Danantara Stresses Strong Fundamentals
The Chief Operating Officer (COO) of Danantara, Dony Oskaria, has asserted that the decision to initiate a share buyback for the Association of State-Owned Banks (Himbara) is based on confidence in the strong fundamentals of these banks, even though this is not yet fully reflected in their current market prices.
“Because the share prices are low, it is advantageous for us to acquire them as the fundamentals are good. As I mentioned yesterday, the fundamentals of our banks are in the best possible position today. It can be seen clearly, as they are public companies,” Dony stated in Jakarta on Wednesday.
He noted that a buyback is a standard mechanism employed by company owners when share prices fall below their true fundamental value.
“In essence, a buyback is a normal mechanism used by owners when the share price does not align with the fundamentals,” said Dony.
According to him, many shares of national companies, particularly in the banking and infrastructure sectors, currently possess excellent performance and prospects. However, these conditions have not yet been optimally reflected in share price movements.
“It would be a waste. That is what is happening; many of our stocks have very strong fundamentals. If you look at our stocks, our banking is good, our infrastructure stocks are good, their performance is strong,” he added.
Furthermore, he emphasised that the performance of state-owned banks is currently in an excellent condition, which can be transparently observed through the financial reports of each issuer.
“You can see the books; they are in an incredibly good position. So, if the share prices drop, it would be a waste, so let’s just take them,” he said.
Previously, the Deputy Speaker of the House of Representatives (DPR RI), Sufmi Dasco Ahmad, stated that coordination has taken place with Danantara, BPJS Ketenagakerjaan, PT Taspen, and Himbara to conduct the buyback of Himbara bank shares.
According to him, this is one of the results of an evaluation of the current banking situation. He noted that the current state of the banking sector is actually developing very well.