REPUBLIKA.CO.ID, JAKARTA - Two biggest plantation companies in Indonesia, PT London Sumatra Indonesia and PT Salim Ivomas plans to buy back the company's shares. London Sumatra wanted to buy back as much as 0.46 percent of  total shares issued. This ratio was equivalent to 31 million shares.

President Director of London Sumatra Benny Tjoeng said his company had reported to Indonesia Stock Exchange (BEI) that they prepared fund worth 60 billion IDR for bought back. 

"The shares that bought back to be recorded as treasury stocks," he said on Monday.

The erratic prices of palm oil caused companies awared of stock prices’ decline. Moreover, palm oil companies' revenue also decreased in 2012. London Sumatra recorded a net lost of 34.4 percent. The net profit decreased from 1.7 trillion IDR in 2011 to 1.12 trillion IDR in 2012.

At the same time, PT Salim Ivomas would also buy back stocks in order to  increase shareholder value. The shares would be noted as treasury stocks and it would be purchased within a period of 18 months from May 27, 2013.

President Director of Salim Ivomas, Mark Wakeford said the purchased of shares as much as 315 million shares, or two percent of the company's shares which issued and fully paid. The purchase has approved by the shareholders. 

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