Rabu 16 Apr 2025 14:10 WIB

Adaro Andolan Ready to Buyback Shares Up to Rp 4 Trillion

Stock buybacks can be made from May 23, 2025 to the next 12 months.

Red: Budi Raharjo

Foto: Republika/Prayogi

Journalists monitor the moving screen of the Combined Stock Price Index (IHSG) at the Indonesia Stock Exchange (BEI) Jakarta, Tuesday (8/4/2025). IHSG opened down 9.19 percent to 5,912.06 in Tuesday trading (8/4/2025) amid a surge in the implementation of import tariffs by U.S. President Donald Trump. Indonesia Stock Exchange (BEI) immediately took decisive action in the form of halting trading and adjusting the lower Auto Rejection (ARB) limit to maintain market stability. At 09:00pm, the BEI temporarily halted trading in the JATS system as IHSG was recorded as falling by up to 8 percent. Trading resumed at 9:30pm with no schedule changes.

REPUBLIKA.CO.ID, JAKARTA -- PT Adaro Andalan Indonesia Tbk (AADI) is preparing to buy back (buyback) the company's shares up to Rp 4 trillion. The share buyback will be carried out gradually over a period of no longer than 12 months after the date of obtaining approval in the company's General Meeting of Shareholders (GMS).

“The company plans to repurchase the company's shares in the amount of Rp 4 trillion,” AADI management wrote in a disclosure on the Indonesia Stock Exchange (BEI) quoted in Jakarta on Wednesday (16/4/2025).

Baca Juga

AADI will first hold an AGM on May 22, 2025 to seek shareholder approval regarding the share buyback plan. If approved, share buybacks can be made from May 23, 2025 to the next 12 months.

The Company expects the share buybacks to increase the trading liquidity of the company's shares, so AADI's share price is expected to reflect the fundamental value of the company.

“The share buyback is expected to provide good returns for shareholders, as well as boost investor confidence. So that AADI's share price can reflect the actual fundamental condition of the company,” AADI management wrote.

The Company believes that the share buyback will not have a negative impact on performance and earnings because the current balance of profit and available cash flow are sufficient to fund the share buyback.

On the other hand, the amount of the nominal value of the buyback of AADI shares will not exceed 10 percent of the amount of capital placed in the company, and will not cause AADI's net worth to be less than the amount of invested capital plus the mandatory reserves that have been set aside.

This corporate action refers to the Financial Services Authority Regulation No. 29 of 2023 (POJK 29/2023) on the Repurchase of Shares Issued By Open-Ended Companies.

Then, it also refers to the Financial Services Authority Regulation No. 15/POJK.04/2020 of 2020 (POJK 15/2020) on the Plan and Holding of the General Meeting of Shareholders of Open Companies.

In addition, it also refers to the Law of the Republic of Indonesia Number 40 of 2007 on Limited Liability Companies as amended by the Government Regulation of the Republic of Indonesia Number 2 of 2022 on Creation of Work as it has been established into a Law under Law No. 6 of 2023 on the Determination of Government Regulations to Replace the Law of the Republic of Indonesia Number 2 of 2022 on Creation of Work into Law (UUPT).

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