Insight

IDR23tn Announced Buyback, Positive for IHSG

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Algo Research Team


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Key Summary:


  • OJK introduced new buyback regulations to stabilize share prices
  • IDR9.5tn buyback has been announced, totaling to IDR23tn
  • Buybacks expected to create short-term positive tailwind for IHSG

The Financial Services Authority (OJK) announced on March 18, 2025, that listed companies can now conduct share buybacks without prior shareholder approval. This move aims to stabilize stock prices and enhance market liquidity amid economic uncertainty.


Context: The regulation change came after IHSG dropped as low as 5% during its intraday trading last week, which triggered a trading halt and went as low as 6,000 (-7%) before rebounding to close around 6,200 (-3.8%).


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