REPUBLIKA.CO.ID, JAKARTA — Indonesia Financial Services Authority (OJK) issues a share buyback or buyback policy without the need to go through the General Meeting of Shareholders (AGM). The policy was issued in response to pressures in the capital markets characterized by a decline in the Composite Stock Price Index (IHSG). For your information, this buyback policy without GMS was issued during the Covid-19 pandemic.

Since September 19, 2024, IHSG has experienced a significant downward trend. Through March 18, 2025, the index was recorded to have slumped by 1,682 points or a 21.28 percent decline from its high this year. Based on these conditions, OJK establishes the market in a state of significant fluctuation as stipulated in Article 2 letter g of POJK Number 13 of 2023.

“This policy is expected to increase confidence in the market and reduce the pressure that is occurring. This move is also a follow-up to the meeting with capital market stakeholders on March 3, 2025,” said Inarno Djajadi, Chief Executive Officer of the OJK Capital Markets Supervisor, Derivatives Finance and Carbon Exchange, during a press conference in Jakarta on Wednesday (19/3/2025).

OJK has conveyed this policy of share buyback without AGM to all directors of the open company through an official letter dated 18 March 2025. In its implementation, publicly traded companies are obliged to comply with the provisions of POJK Number 29 of 2023 on the Repurchase of Shares.

As for the status of market conditions that fluctuate significantly, it is valid for up to six months from the date of issuance of the OJK letter. With this policy in place, open-ended companies have the flexibility to stabilize stock prices amid high volatility as well as

boost investor confidence.

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