News

Jakarta, 19 March 2025 – Indonesia Financial Services Authority has issued a policy concerning Implementation of Share Buybacks by Public Companies in Conditions of Significant Market Fluctuations, allowing share buybacks without requiring approval from the General Meeting of Shareholders (Rapat Umum Pemegang Saham/RUPS).

This policy was introduced in response to market conditions, as trading on Indonesia Stock Exchange (IDX) has been under pressure since 19 September 2024. This is reflected in the Jakarta Composite Index (IHSG) declining by 1,682 points, or 21.28% from its highest point to date, as of 18 March 2025.

"In light of the above conditions, OJK has determined that the current situation qualifies as an 'other condition' as referred to in Article 2 (Letter g) of OJK Regulation No. 13 of 2023 (POJK 13/2023), categorizing it as a condition of significant market fluctuation," stated Chief Executive of Capital Market Supervision, Derivatives Finance, and Carbon Exchange, Inarno Djajadi,, during a press conference in Jakarta on Wednesday.

The share buyback policy without RUPS approval has been formally communicated to the boards of directors of public companies through an official letter from OJK dated 18 March 2025.

Inarno expressed hopes that this policy would help restore market confidence, reduce market pressures, and serve as a follow-up to the stakeholder meeting held on 3 March 2025.

According to Article 7 of POJK 13/2023, in conditions of significant market fluctuations, public companies may conduct share buybacks without obtaining RUPS approval.

Furthermore, any share buybacks executed under these circumstances must also comply with POJK No. 29 of 2023, which governs share repurchases by public companies. The designation of significant market fluctuations will remain in effect for up to six months from the date of OJK’s official letter.

The option to conduct share buybacks without RUPS approval has been implemented by OJK in the capital market sector before, and in practice, it provides greater flexibility for issuers to stabilize share prices during periods of high volatility and enhance investor confidence.