Optimistic, BNI Will Buy Back Shares Of Up To IDR 905 Billion

Illustration of BNI (Photo: dock. Antara)

JAKARTA - PT Bank Negara Indonesia (Persero) Tbk (BBNI) will buy back IDR 905 billion shares (Buyback). This amount is the same as 10 percent of the paid-up capital.

The repurchase of the company's shares that have been issued and listed on the Indonesia Stock Exchange (IDX) will be completed no later than 18 months from the date of the 2022 Annual General Meeting of Shareholders (AGMS), which approved the implementation of the buyback.

In an official statement received in Jakarta, Friday, BNI Finance Director Novita Widya Anggraini said the company was preparing a buyback to offset selling pressure in the market when the Composite Stock Price Index (JCI) was fluctuating.

"The buyback plan is also intended to give investors confidence that the company has high optimism for fundamentals that continue to improve, so that current stock prices have the potential to rise," said Novita.

He said the company's share valuation (price to book value) as of March 13, 2023 was recorded at 1.23 times or below the 10-year average of 1.4 times.

As for the previous year, BNI's share price at the end of 2022 was recorded to have increased by 36.7 percent compared to the same period the previous year (year-on-year/yoy) or much higher than the increase in LQ-45 share price which was 0.7 percent (yoy).

This growth is separated from the JCI which is moving quite fluctuating in 2022 and is colored by the dynamics of geopolitical conditions, commodity prices, and the monetary policies of the world's central banks in adjusting interest rates.

BNI also has a commitment to continue to produce healthy and sustainable profitability so as to provide optimal value for all stakeholders, especially for shareholders.

Even though the global economic condition this year is still full of challenges, the issuer with the stock code BBNI is confident and optimistic that Indonesia's condition is much better than other countries.