BNI Will Buy Back Shares Of IDR 905 Billion, This Is The Reason

Bank BNI (Photo: Antara)

JAKARTA - PT Bank Negara Indonesia (Persero) Tbk (BBNI) announced that it will buy back as much as IDR 905 billion or 10 percent of the total paid-up capital derived from free cash.

Through the information disclosure of the Indonesia Stock Exchange, BNI Corporate Secretary Okki Rushartomo explained the reasons behind this corporate action. According to him, although during the first 10 months of 2024 it showed positive growth year on year, but entering the end of 2024, BNI banks were under pressure.

"Especially there is negative sentiment after the results of the American elections at the end of November 2024 put pressure on the Composite Stock Price Index (JCI)," he said, Wednesday, February 5.

Oki added that the pressure on BBNI shares also began to be felt as a result of investors' concern over geopolitical instability conditions and Indonesia's macroeconomic conditions around liquidity conditions and the weakening of the exchange rate. This caused BBNI shares to close at 4,130 as of January 14, 2025 or weaken 21.7 percent yoy.

This, said Okki, is a contrast if BNI's share performance is calculated on an average basis for BNI shares in 2024, where it grows 11.1 percent yoy.

In addition, some of the sentiments affecting the stock exchange include the Fed which gave a signal of cutting interest rates to only 25-50 bps in 2025 (vs estimated last year at 100-125 bps). So that the potential for "higher for longer" reappears, rupiah depreciation against the US dollar, fluctuating liquidity, and geopolitical dynamics are still high.

"Buyback is meant to help reduce selling pressure in the market when the stock price index is fluctuating as well as an indication to investors that the company views current stock prices as not reflecting the company's fundamentals," Okki said.

The buyback plan will be discussed at the company's General Meeting of Shareholders (GMS) on March 13, 2025. Meanwhile, the buyback implementation period is carried out within 12 months from the approval of the buyback plan in the AGMS.