Open Companies Can Buyback Without GMS, This Is The Provision

Photo: Karisa Aurelia Tukan/VOI

JAKARTA - The Financial Services Authority (OJK) announced that open companies can buy back or buy back shares without a General Meeting of Shareholders (GMS) and this provision is valid 6 months from March 18, 2025.

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

In addition, Inarno conveyed that this policy was also a follow-up to the meeting with stakeholders in the capital market which was held earlier on March 3, 2025.

"We announce the policy that open companies can repurchase shares or buy back without obtaining approval from the general meeting of shareholders," he told the media crew, Wednesday, March 19.

On the other hand, Inarno conveyed that with this policy, open companies can buy back shares without the need for approval in the GMS in accordance with Article 7 POJK 13/2023.

However, he said that listed companies that will buy back must remain and must meet the provisions of POJK 29/2023 concerning the Purchase of Shares Issued by Open Companies.

Inarno said that the purchase of shares by open companies was not much different during the Covid-19 pandemic, which was around 20 percent of the paid-up capital.

"Yes, so about 20 percent (share) can be bought back and we limit the status of market conditions which are fluctuating significantly for six months," he said.

As for in detail, the provisions of POJK Number 29 of 2023 concerning the Purchase of Shares Issued by Open Companies, there are several buyback provisions regulated by OJK.

In addition, the implementation of share repurchase due to significantly fluctuating market conditions is also required to comply with the provisions of Article 6 to Article 14 in POJK Number 13 of 2023.