JAKARTA - The Financial Services Authority (OJK) allows all issuers or public companies to buy back shares in an effort to provide economic stimulus and reduce the impact of the market that fluctuates significantly.
Observing the stock trading conditions on the Indonesia Stock Exchange since the beginning of 2020 until March 9, 2020, continues to experience significant pressure, which is indicated from the decline in the Jakarta Composite Index by 18.46%. This happened in line with the slowdown and pressure of the global, regional and national economy as a result of the COVID-19 outbreak and weakening world oil prices.
For this reason, OJK issued a policy of buying back shares issued by issuers or public companies (share buybacks).
Share buyback by issuers or public companies in a market condition that fluctuates significantly, is done by relaxing two things namely share buyback that can be done without obtaining approval from the General Meeting of Shareholders (GMS) and the number of shares that can be repurchased can be more than 10% of paid up capital and a maximum of 20% of paid up capital, with the condition that at least the outstanding shares are 7.5% of paid up capital. (LM)