JAKARTA – PT Indocement Tunggal Prakarsa Tbk (INTP) has allocated up to IDR 2.25 trillion for a share buyback programme, after management assessed that the current share price is undervalued, or below its fair value.

Dani Handajani, Corporate Secretary of INTP, stated that the buyback is a strategic step to enhance shareholder value and a demonstration of management’s confidence in the company’s long-term prospects.

“The company is currently in a net-cash position, and we believe the buyback will not negatively impact earnings, financing, or future growth,” said Dani in an official statement quoted on Tuesday (15/4).

The IDR 2.25 trillion buyback fund will be fully sourced from the company’s internal cash and will include all related expenses, such as brokerage fees and other costs.

The number of shares to be repurchased will not exceed 10% of the total paid-up capital, which currently stands at IDR 1.84 trillion, equivalent to 3.68 billion shares.

The proposal will be submitted for approval at the Annual General Meeting of Shareholders (AGMS) on May 21, 2025, with the buyback scheduled to run from May 22, 2025, to May 21, 2026.

Should the funds be depleted or the maximum number of shares be reached, INTP will cease the buyback and disclose the information publicly.

In the first trading session on Tuesday (15/4), as of 09:05 WIB, INTP shares rose 5.88% or 300 points to IDR 5,400. Over the past month, the stock has steadily climbed, gaining 20.59%. However, over the past three months, it has dropped 9.80%. (EF/ZH)