OJK Responds to State-Owned Enterprise Share Buyback Plans

Indonesia's Financial Services Authority (OJK) has expressed optimism regarding the capital market, welcoming the attention and support from various stakeholders. Hasan Fawzi, Head of Capital Market, Derivative Finance, and Carbon Exchange Supervision at OJK, noted that many publicly listed companies demonstrate strong fundamentals and consistent performance, supported by sound operations and healthy financial positions.

In response to current market pressures, OJK has enacted several policies aimed at maintaining stability. Notably, the authority has provided flexibility for share buybacks, allowing companies to proceed without needing approval from a General Meeting of Shareholders (GMS) for up to 20 percent of their paid-up capital. Fawzi stated this policy empowers issuers to showcase their confidence in their company's performance and fundamentals, while also helping to stabilize stock prices.

Data from OJK reveals that from March 2025 to May 18, 2026, a total of 106 companies disclosed buyback plans without GMS approval, involving 65 different issuers. These companies allocated Rp 65.34 trillion for these buybacks. Of these, 64 companies have already executed buybacks amounting to Rp 17.12 trillion, representing 30.25 percent of the allocated funds. Currently, seven issuers are still within their buyback periods without GMS approval, with an estimated value of Rp 5.76 trillion.

The discussion around share buyback plans gained prominence following a meeting involving Deputy Speaker of the House of Representatives, Sufmi Dasco Ahmad, government officials, and representatives from state-owned banks and financial institutions. The discussions focused on the performance of banking stocks, with Ahmad noting the positive condition of the banking sector.