Buyback Without GMS, OJK Reveals Will Increase Investor Confidence

The Financial Services Authority (OJK) has provided a stimulus for listed companies so that they can buy back shares without the approval of the General Meeting of Shareholders (GMS) for the next 6 months.

Chief Executive of the Capital, Finance, Derivative and Carbon Exchange Supervisory, Inarno Djajadi, said that this strategic step was a response to volatility and also a decline in the combined stock price index (IHSG).

Inarno said that in practice, this policy is expected to provide flexibility for issuers to stabilize stock prices in high volatility conditions and increase investor confidence.

"As well as increasing investor confidence as it was issued in 2013 2015 and also 2020 during the COVID-19 pandemic yesterday," he said at a press conference, Wednesday, March 19.

Inarno realized that the current market conditions are full of challenges, but he believes that with close cooperation between regulators, market players, and all stakeholders, the market can get through this phase well.

As a regulator, Inarno said that the OJK will continue to carry out regular monitoring and evaluation, as well as ensure that all policy steps are carried out transparently and able to maintain market balance, including the implementation of buy back policies without a GMS.

"We will continue to monitor the implementation of this policy and be open to input from various stakeholders to ensure that the benefits can be felt by all market players," he added.

In addition, he emphasized that OJK is committed to continuing to create a fair, transparent and efficient financial ecosystem for all parties and hopes that with this step, trust in the Indonesian capital market will be stronger and its competitiveness at the global level will increase.

Inarno also invited all stakeholders to convey appropriate and accurate information to the public, because this is an important element in building investor and public trust and maintaining capital market integrity.

"We also urge all investors to pay attention and consider well the investment decision," he said.

Inarno emphasized that all parties want a capital market that grows and develops together and invites all parties to build trust, protect investors, and ensure that the capital market remains the main pillar of the national economy.