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BRI, BNI ready to buy back shares: Minister
State-owned Enterprises Minister Rini Soemarno said on Friday that two state lenders, Bank Rakyat Indonesia (BRI) and Bank Negara Indonesia (BNI), were ready to buy back shares to push up their stock prices at the local bourse
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tate-owned Enterprises Minister Rini Soemarno said on Friday that two state lenders, Bank Rakyat Indonesia (BRI) and Bank Negara Indonesia (BNI), were ready to buy back shares to push up their stock prices at the local bourse.
Rini said that the government had allocated Rp 10 trillion (US$710 million) for state firms listed on the Indonesian Stock Exchange (IDX) to buy back their shares.
There are at least 13 state companies that will receive part of this funding for the purpose of share buybacks. However, Rini refused to name the companies, only hinting that among them were pension funds and insurance firms.
'Many are ready, but we are yet to discuss which ones will be the first,' she said, as quoted by tempo.co.
Rini explained that the share buyback initiative originally came from the state companies.
Based on their analysis, the firms argued that their prices in the stock market were quite attractive amid the global market turmoil that has resulted in a drop in share prices in the local market.
The Financial Services Authority (OJK) has allowed publicly listed companies to buy back their shares without requiring shareholders' permission in an attempt to reduce market fluctuations. (edn/ika)
