Kata Bos BBCA dan BMRI Soal Aturan Buyback Saham
Indonesia’s capital market Reacts to OJK‘s Policy on Market Volatility
Table of Contents
- Indonesia’s capital market Reacts to OJK’s Policy on Market Volatility
- Indonesia’s Capital Market Reacts to OJK’s Policy on Market Volatility: A Q&A Guide
- What is the OJK and its role in the Indonesian Capital Market?
- What is the new OJK policy regarding share buybacks?
- Why did the OJK introduce this policy?
- what is the IHSG and why is it important?
- What is a share buyback and how does it work?
- What is RUPS and why does the OJK Policy waive the need for it in this case?
- What are the potential benefits of the OJK’s share buyback policy?
- Which companies are responding to the OJK’s policy?
- How Might the OJK Use its Powers During Market Emergencies?
JAKARTA – major Indonesian banks are showing a positive response to the Otoritas jasa Keuangan (OJK)’s measures aimed at mitigating volatility in the Indonesian capital market. The capital market is closely watched by investors and regulators alike.
The OJK has issued a “Kebijakan Pelaksanaan Pembelian Kembali Saham yang Dikeluarkan oleh perusahaan Terbuka dalam Kondisi Pasar yang Berfluktuasi Secara Signifikan,” which translates to a Policy on the implementation of Share Buybacks Issued by Public Companies Under significantly Fluctuating Market Conditions. This allows for share buyback programs without requiring approval from a General meeting of Shareholders (RUPS).
This policy was enacted considering the pressures experienced in stock trading on the Indonesia Stock Exchange (Bursa Efek Indonesia) since September 19, 2024.These pressures are indicated by the decline of the Indeks Harga Saham gabungan (IHSG), or the Composite Stock Price Index, which as of March 18, 2025, had fallen by 1,682 points, or -21.28% from its Highest to Date. The IHSG is a key indicator of market health.
The option for a buyback policy without RUPS is a measure previously implemented by the OJK in the capital market sector. It aims to provide adaptability for issuers to stabilize share prices during periods of high volatility and boost investor confidence. This investor confidence is crucial for market stability.
BBCA and BMRI Respond to Market Volatility
Leading banks such as BBCA and BMRI are among the first to respond to the OJK’s policy, signaling a proactive approach to managing market fluctuations. The OJK policy is designed to encourage such responses.
Indonesia’s Capital Market Reacts to OJK’s Policy on Market Volatility: A Q&A Guide
This article addresses key questions surrounding the Otoritas Jasa Keuangan (OJK)’s recent policy changes aimed at mitigating volatility in the indonesian capital market, particularly focusing on share buybacks.
What is the OJK and its role in the Indonesian Capital Market?
The Otoritas Jasa Keuangan (OJK), or indonesia Financial Services Authority, is the state institution that regulates and supervises the financial services sector in Indonesia. Its role is crucial in:
Maintaining stability: Ensuring the stability of the financial system, including the capital market.
Protecting investors: Safeguarding investor interests and promoting fair and transparent market practices.
Issuing regulations: Developing and implementing regulations to govern the operations of market participants.
Supervising activities: Overseeing the activities of financial institutions and market operators.
Responding to crises: Taking necessary actions during market emergencies to maintain stability.
The OJK has issued a policy called “Kebijakan Pelaksanaan pembelian Kembali Saham yang Dikeluarkan oleh perusahaan Terbuka dalam Kondisi Pasar yang Berfluktuasi secara Signifikan,” which translates to “Policy on the implementation of Share Buybacks Issued by Public Companies under Significantly Fluctuating Market Conditions.” The key aspect of this policy is that it allows companies to conduct share buyback programs without needing approval from a General Meeting of Shareholders (RUPS).
Purpose: To provide companies with greater versatility to stabilize their share prices during periods of high market volatility.
Flexibility: Allows issuers to act quickly to stabilize share prices.
Why did the OJK introduce this policy?
This policy was enacted in response to pressures experienced in stock trading on the Indonesia Stock exchange (Bursa Efek Indonesia) as September 19, 2024. The Composite Stock Price Index (IHSG) had significantly declined.
Market Decline: As of March 18, 2025, the IHSG had fallen by 1,682 points, or -21.28% from its Highest to Date.
Mitigation: The policy aims to mitigate the negative impacts of this decline by allowing companies to support their stock prices.
what is the IHSG and why is it important?
The Indeks Harga Saham Gabungan (IHSG), or Composite stock Price Index, is the main stock market index for the Indonesia Stock Exchange (IDX).It represents the performance of all listed companies on the IDX.
Key Indicator: The IHSG is a key indicator of the overall health and performance of the Indonesian stock market.
Investor sentiment: Movements in the IHSG reflect investor sentiment and confidence in the Indonesian economy.
A share buyback, also known as a stock repurchase, is when a company buys its own outstanding shares from the open market.
Reduced shares: This reduces the number of shares available, potentially increasing the value of the remaining shares and boosting earnings per share (EPS).
Signaling: Share buybacks can signal that a company believes its stock is undervalued.
Investor Confidence: They’re often seen as a way of returning value to shareholders.
What is RUPS and why does the OJK Policy waive the need for it in this case?
RUPS stands for Rapat Umum Pemegang Saham, or General Meeting of Shareholders.It is a meeting where shareholders of a company can vote on important company matters.
Normal Requirement: Typically, share buybacks require approval from the RUPS.
Emergency Measure: The OJK policy waives this requirement in times of significant market volatility to allow companies to act more quickly and efficiently to stabilize their share prices.
The OJK’s share buyback policy offers several potential benefits:
stabilized Share Prices: Buybacks can definitely help to stabilize share prices during periods of high volatility, preventing excessive declines.
Increased Investor Confidence: By supporting their stock prices, companies can boost investor confidence in the market.
Enhanced market Stability: Increased investor confidence contributes to overall market stability.
Adaptability: Allows for quicker responses compared to needing RUPS approval [1].
Which companies are responding to the OJK’s policy?
Leading banks such as BBCA (Bank Central Asia) and BMRI (Bank Mandiri) are among the first to respond to the OJK’s policy [2, 3]. This signals a proactive approach among major Indonesian financial institutions to managing market fluctuations. The positive response from major Indonesian banks indicates the policy is being taken seriously by market participants.
How Might the OJK Use its Powers During Market Emergencies?
| Power | Description |
| ——————————————— | ——————————————————————————————————————————————————————————- |
| Issuing Emergency Instructions | The OJK can bypass normal regulatory drafting to instruct stock exchanges, market operators, clearing and guarantee institutions, and depository and settlement institutions [1]. |
| Share Buyback Without Shareholder Consent | OJK can allow share buybacks without needing approval from the General meeting of Shareholders (AGM). |
| Easing of Share Buyback Rules | The Financial Services Authority and the Indonesia Stock Exchange announced the easing of share buyback policies to anticipate market volatility. |