Six SOEs allowed to buy back shares

Six SOEs allowed to buy back shares

Caption: State-Owned Enterprises Minister Erick Thohir. (ANTARA FOTO/Muhammad Iqbal/pd/pri)

Jakarta (ANTARA) - Six state-owned enterprises (SOEs) listed on the Indonesian Stock Exchange will buy back their shares in efforts to shore up the domestic money market amid the coronavirus outbreak, said SOEs Minister Erick Thohir.

"We are processing (proposals for) share buyback at the stock exchange. But, for the time being, I have only allowed six companies,” he said in a video conference in Jakarta on Friday.

The six SOEs are Bank Rakyat Indonesia Tbk (BBRI), Bank Mandiri Tbk (BMRI), Bank Negara Indonesia Tbk (BBNI), Telkom Indonesia Tbk (TLKM), PT Bukit Asam Tbk (PTBA), and Jasa Marga Tbk (JSMR).

Some of the SOEs have realized a buyback program in stages, he said.

"We must agree to see the trend. The momentum must be right. This is one of the things on which we are focusing in the monetary sector," he said.

Only SOEs with a solid financial performance will be allowed to buy back their shares, he said.

Earlier, SOEs Vice Minister Kartika Wirjoatmodjo asked SOEs to use the funds for share buybacks tactically, in accordance with fundamental principles.

"Tactically means that the funds will not be used all at once because the situation will likely last for quite a long time. They should set aside the funds, but their use depends on their fundamental change," he said in Jakarta on Wednesday.

He said the SOEs that will buy back their shares have good liquidity so the buyback will not affect their financial performance. (INE)

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