JAKARTA - The Financial Services Authority (OJK) issued a policy allowing all issuers or public companies to buy back (buyback) shares as an effort to provide economic stimulus and reduce the impact of the market which fluctuates significantly.
This was carried out by the OJK after observing the conditions of stock trading on the Indonesia Stock Exchange (IDX) from the beginning of 2020 to today, Monday, March 9, 2020, which continued to experience significant pressure, as indicated by the decline in the JCI by 18.46 percent.
"This is in line with the economic slowdown and pressure, both global, regional and national as a result of the COVID-19 outbreak and the weakening world oil prices," said Anto Prabowo, Deputy Commissioner for Public Relations and Logistics of the OJK, in a written statement, quoted on Tuesday 10. March.
In detail, share buybacks by issuers or public companies in significant fluctuating market conditions are carried out by relaxing as follows:
1. Repurchase may be made without first obtaining approval from the General Meeting of Shareholders (GMS); and
2. The number of shares that can be bought back, can be more than 10 percent of the paid-up capital and a maximum of 20 percent of the paid-up capital, provided that at least 7.5 percent of the paid-up capital is outstanding.
This provision is stated in OJK Circular Letter Number 3 / SEOJK.04 / 2020 dated March 9, 2020 concerning Other Conditions As Market Conditions That Fluctuate Significantly In The Implementation of Shares Buyback Issued by Issuers or Public Companies.
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