JAKARTA – The buyback of shares by PT Bank Rakyat Indonesia Tbk (Persero) (BBRI) is getting closer. The company plans to disburse funds of no less than IDR 3 trillion in the corporate action.
Meanwhile, the execution of the buyback will be carried out in the period from March 1 to August 31.
Based on the plan, issuer analysts from the Indonesian Securities Analysts Association, Reza Priyambada, assessed that the shares from the buyback will be used for employee share ownership programs and/or the company's directors and board of commissioners.
“One day the buyback period was over and the shares from the buyback had to be released again. The release can be returned to the public or in the form of an Employee Stock Ownership Plan (ESOP)," he said in a written statement on Tuesday, February 15.
According to Reza, the ESOP scheme has its own advantages compared to releasing shares to the public.
"If they allocate the shares from the buyback for the ESOP, it is possible that they hope that there will be a sense of belonging from the BRI employees so that they will work harder, which will ultimately support the growth of BRI's performance," he said.
For information, the estimated buyback value does not include commission fees for other securities brokers, which is around 0.33% of the buyback value.
"This step will not affect BRI's financial condition," he said.
Furthermore, Reza said that the stock price of the BBRI coded bank is still below its fundamentals.
"I believe that BRI's management in the future will be able to return to controlling fundamental performance. Thus, it will have a positive impact on the performance of BBRI's share price," concluded Reza.
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