Lawmaker's Suggestion for Share Buybacks Aims to Calm Indonesian Stock Market

A strategic intervention from Indonesia's parliament has seemingly calmed the Jakarta Composite Index (IHSG) after weeks of market pressure. The Jakarta Composite Index experienced a significant downturn from late May through the first week of June 2026, causing concern among major investors.

In response, House of Representatives Speaker Sufmi Dasco Ahmad convened a closed-door meeting on June 9, 2026. The gathering included top executives from state-owned banks like BNI, Mandiri, and BRI, alongside leaders from the Indonesia Investment Authority and other government investment institutions. This high-level meeting, held in Ahmad's office, signaled a coordinated effort to stabilize the market.

Following the meeting, Ahmad suggested that shares with strong fundamentals could be repurchased, hinting at a potential share buyback program by members of the Association of State-Owned Banks (Himbara). This appeal was reportedly a direct response to complaints from major investors whose portfolios had diminished in value due to the market's decline. Concerns had reportedly reached the Presidential Palace, underscoring the issue's national significance.

While Ahmad declined to comment further when contacted on June 12, the meeting and the subsequent buyback suggestion appear to have positively shifted market sentiment. The intervention highlights a proactive approach by Indonesian authorities to manage market volatility and reassure investors.

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Perhaps shares that currently have strong fundamentals can be bought back.