Supporting Long-Term Business Growth, Semen Indonesia Will Buy Back Shares Of IDR 300 Billion

Shares (between)

JAKARTA - PT Semen Indonesia (Persero) Tbk (SMGR) or GIS announced a corporate action in the form of a share buyback of IDR 300 billion. This is an effort to support business growth in the long term.

Buybacksaham was carried out in two stages, namely worth Rp. 200 billion without the approval of the annual general meeting of shareholders (GMS) on April 16, 2025 to May 23, 2025, and worth Rp. 100 billion by asking for approval from the GMS on May 23, 2025.

"SIG plans to use a total fund of Rp. 300 billion, of which this value is included in the allocation of funds used in the purchase of shares in significantly fluctuated market conditions carried out by the company on April 16, 2025 to May 23, 2025, worth Rp. 200 billion," said SIG Corporate Secretary Vita Mahreyni quoting Antara.

Vita explained that the buybacksaham action was in line with the company's belief and trust in its strong fundamentals, as an effort to improve performance and achieve growth in the long term.

"At the same time, this is also an indication for investors that current stock prices do not necessarily reflect the real GIS fundamentals," said Vita.

Furthermore, the implementation of the buybacksaham was also motivated in line with GIS' plan to carry out a share ownership program for employees, directors, and board commissioners, with criteria and requirements to be determined by the company.

"This is done in order to encourage engagement on the sustainability of GIS's performance improvement in the long term," said Vita.

He believes that the implementation of the share buyback will not have an impact on reducing material income in business activities, considering that GIS has sufficient working capital and cash flow to finance share buybacks along with business activities.

"This share buyback transaction also does not have a material impact on SIG financing costs as a result of the implementation of share buyback," said Vita.

In the GMS on May 23, 2025, GIS will seek approval from shareholders regarding the plan to buy backsaham which is worth Rp. 100 billion, with the time of implementing the buybacksaham no later than 12 months after the date of the GMS, from May 24, 2025 to May 23, 2026.

The implementation of the buybacksaham without the approval of the GMS is in accordance with the Financial Services Authority Regulation (POJK) No. 13/2023 and OJK Letter No. S-17/2025 dated March 18, 2025 regarding the Policy for the Implementation of Share Purchase Issued by Open Companies in Significant Fluctuating Market Conditions.

Meanwhile, the implementation of the share buyback through the approval of the GMS is in accordance with POJK No. 29/2023.