BRI Ready to Prepare Rp500 Billion Fund for Share Buyback

Illustration. (Photo: Dok. Antara)

JAKARTA - PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) announced a plan to repurchase shares in a significantly fluctuating market condition (fluctuating buyback) with a maximum value of IDR 500 billion.

BRI Corporate Secretary Dhanny revealed that this step is part of the company's strategy to increase shareholder value while reflecting management's confidence in the fundamental strength of the company's performance and the long-term growth prospects which remain solid.

"We assess that BBRI's current valuation is still below its fair value or has not fully reflected the company's business performance and potential," said Dhanny, Friday, June 12.

The fluctuating buyback period will be carried out on June 12, 2026 to September 11, 2026.

He explained that the implementation of this fluctuating buyback referred to the Financial Services Authority (POJK) Regulation Number 13 of 2023 concerning Policies in Maintaining Capital Market Performance and Stability in Significantly Fluctuating Market Conditions, as well as OJK Letter Number S-10/D.04/2026 dated March 13, 2026 regarding the policy for the implementation of the buyback of shares by open companies in conditions of significantly fluctuating markets.

The funding for the fluctuating buyback will be guided by POJK 13/2023 and POJK 29/2023. The fluctuating buyback will be carried out at a price that is considered reasonable, while still taking into account applicable regulatory provisions.

Dhanny added that BRI's buyback move had also considered market conditions which were still influenced by various global challenges, ranging from uncertainty in the world economy, increasing geopolitical tensions in the Middle East region, rising world oil prices, to capital outflows from emerging markets.

This condition also puts pressure on the financial market, including the Indonesian capital market.

"Through this corporate action, BRI has carefully considered the current liquidity conditions and financial position, so that the implementation of the fluctuating buyback will not have a material impact on the company's financial and operational conditions," he said.

After the buyback, the pro forma financial indicators of BRI (consolidated) as of March 31, 2026, recorded a capital adequacy ratio or Capital Adequacy Ratio (CAR) remained at a strong level of 22.86 percent, while the Return on Equity (ROE) was recorded at 18.37 percent.

"This reflects that the company still has strong capital capacity to support business expansion and mitigate the risk of managing the bank's business," he continued.

On the other hand, the shares of the fluctuating buyback results will be transferred through the employee and/or Board of Directors and Board of Commissioners' share ownership program, which can be transferred after obtaining the approval of the GMS.

"As part of Danantara, BRI will continue to focus on strengthening the fundamentals of the business and creating long-term value for shareholders, customers, and all stakeholders. On the other hand, the implementation of this policy remains based on applicable regulations and the principles of good corporate governance (GCG)," concluded Dhanny.