REPUBLIKA.CO.ID, JAKARTA -- State Enterprises Minister Rini M Soemarno has hinted that state-owned companies may drop their plan to buy back shares in the capital market after the prices of their shares rebounded.

"Last week, we had proposed a buyback. Several companies were ready for it and had arranged spend Rp10 trillion. But when they were about to buy back the shares, the share prices rebounded," he said.

The buyback had also been supported by the Financial Service Authority (OJK), which issued buyback permits to state firms without holding general meetings of shareholders, she pointed out.

"So we have made preparations for it," she added.

On Monday last week, the government announced that 16 state firms would buy back their shares to prevent the composite share price index (IHGS) of the Indonesia stock exchange from declining. The composite share price index had tumbled 172.224 points or 3.97 percent to 4,163.729 points on August 24.

The 16 state firms were Bank BTN, Bank BRI, Bank Mandiri, Semen Baturaja, Jasa Marga, Wijaya Karya, Bank BNI, Krakatau Stell, Garuda Indonesia, Adhi Karya, Perusahaan Gas Negara, Kimia Farma, Semen Gresik, Aneka Tambang, Indo Farma, Timah, and Bukit Asam.

But when the firms were about buy back their shares on August 25, the prices of their stock had rebounded.

"So none of the 16 state firms ended up buying back shares," Soemarno said.

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