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Minister confirms stock buybacks will continue
Policy unchanged: State-Owned Enterprises Minister Rini Soemarno (left) confirms that Indonesian state-owned companies will continue their share repurchase program, but only after a thorough analysis
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Policy unchanged: State-Owned Enterprises Minister Rini Soemarno (left) confirms that Indonesian state-owned companies will continue their share repurchase program, but only after a thorough analysis. (thejakartapost.com) (left) confirms that Indonesian state-owned companies will continue their share repurchase program, but only after a thorough analysis. (thejakartapost.com)
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span class="inline inline-center">Policy unchanged: State-Owned Enterprises Minister Rini Soemarno (left) confirms that Indonesian state-owned companies will continue their share repurchase program, but only after a thorough analysis. (thejakartapost.com)
State-Owned Enterprises Minister Rini Soemarno confirmed that stock buybacks by state-owned companies would continue, but would be adjusted to market conditions and local share prices.
'It [the buyback program] will continue, but every state-owned company must carry out a thorough analysis,' she said as quoted by Antara.
The minister was speaking after attending the signing of a agreement involving publicly listed gas distributor Perusahaan Gas Negara (PGN), state-owned shipping firm Pelni and state-owned ferry operator ASDP Indonesian Ferry on the use of liquefied natural gas for sea transportation at the State-Owned Enterprises Ministry office in Jakarta on Thursday.
Rini said state-owned companies that were ready to repurchase a large number of their shares included state lenders BRI and BNI, coal mining company Bukit Asam and construction firm Waskita Karya.
The minister added that the buyback program was aimed at increasing stock prices and implementing a merit-based employee stock ownership plan.
'Funding for the buybacks will come from relevant state-owned enterprises. They will be supported by state-owned insurance companies and pension funds, which invest their funds in state-owned enterprises,' said Rini.
The government announced its buyback program after the Jakarta Composite Index (JCI) declined 172.22 points or 3.97 percent to 4,163.73 points on Aug. 24. Shortly after the announcement of the government's buyback plan, stock prices increased over the next few days, although overall the index is still fluctuating.
State-owned enterprises that have been encouraged to buy back their shares are BNI, BRI, BTN, Bank Mandiri, Semen Baturaja, Jasa Marga, Wijaya Karya, Krakatau Steel, Garuda Indonesia, Adhi Karya, PGN, Kimia Farma, Semen Gresik, Aneka Tambang, Indo Farma, Timah and Bukit Asam. (edn/ebf)
