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Jakarta Post

OJK relaxes buyback rules as Indonesian stocks nosedive more than 6%

  • News Desk

    The Jakarta Post

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Jakarta   /   Mon, March 9, 2020   /  06:50 pm
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A stock ticker displays prices on the Indonesia Stock Exchange (IDX) in Jakarta, Indonesia, on April 18, 2019.(Bloomberg/Dimas Ardian)

The Financial Services Authority (OJK) has allowed listed companies to buy back their shares without a prior shareholders meeting in an effort to ease market volatility. Companies are allowed to buy back stocks up to 20 percent of their paid-up capital. “This is as an effort to stimulate the economy and reduce the impact of the significantly fluctuating market,” the OJK said in a statement issued after Monday’s trading session closed deep in the red. The Jakarta Composite Index (JCI) plunged 6.58 percent and closed the day at 5,136.81 points, the lowest level since December 2016, amid heightened COVID-19 fears and a sharp drop in oil prices following a disagreement between oil giants Saudi Arabia and Russia. It has lost 18.46 percent of its value year-to-date with market capitalization dropping to Rp 5.94 quadrillion (US$412.43 billion) as of Monday from Rp 7.2...