This policy was issued due to the downward pressure on the Indonesia Stock Exchange (IDX) stock trading, indicated by a drop in the Composite Stock Price Index as of March 18, 2025, by 1,682 points or a decline of 21.28 percent from the highest to date.
"Therefore, OJK has determined the status of other conditions as referred to in Article 2, letter g of POJK Number 13 of 2023 as market conditions that fluctuate significantly," Chief Executive of Capital Market Supervisory, Derivatives, and Carbon Exchange of OJK Inarno Djajadi stated in a press conference titled "Policy Response to Anticipate Stock Trading Volatility" here Wednesday.
According to Djajadi, details of the buyback policy without the GMS were communicated to the directors of public companies via an official letter from OJK dated March 18, 2025.
This policy is expected to boost trust in the market and alleviate pressure, as well as serve as a follow-up to the meeting with stakeholders in the capital market on March 3, 2025, he stated.
Under Article 7 of POJK 13/2023, public companies are permitted to execute share buybacks without GMS approval during periods of significant market fluctuation.
Share buybacks conducted under significantly fluctuating market conditions must also adhere to the provisions of POJK Number 29 of 2023 governing the Buyback of Shares Issued by Public Companies.
Meanwhile, the determination of significantly fluctuating market conditions is valid for up to six months from the issuance date of OJK's letter.
"The option of a stock buyback policy without a GMS is one of the policies ever issued by the OJK in the capital market sector. In practice, it can provide flexibility for issuers to stabilize stock prices amid high volatility and increase investor trust," Djajadi remarked.
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Translator: Muhammad Heriyanto, Resinta Sulistiyandari
Editor: Rahmad Nasution
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