JAKARTA - The Annual General Meeting of Shareholders (AGMS) of PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) approved a corporate action to buy the company's shares (buyback) which had been issued and recorded on the Indonesia Stock Exchange (IDX) with a nominal amount of all buybacks of IDR 1.5 trillion.
Shares of this buyback will be used to provide rewards and incentives to workers and management, thus spurring the Company's sustainability of performance in the long term.
BRI Finance Director Viviana Dyah Ayu Retno revealed that BRI's current share price does not reflect BRI's potential growth and profitability, especially after the ultra micro holding so that the share buyback action is the right step.
"So this good performance has not been fully appreciated by the market because it is closed by the issues we see. This is a non-performance aspect," he said in a press conference quoted on Tuesday, March 14.
Furthermore, he explained, if in the Indonesian capital market there are two special conditions for the company to carry out a buyback action, namely when the shares are undervalued and the second is to give rewards to employees.
"Is there an effect or not? Can it or not. We can also buy back on special conditions when stock prices fluctuate and cannot be controlled," Vivi continued.
Just so you know, BRI's share price since the beginning of the year has been around between 4,320 and 4,920.
BRI President Director SUnarso added that two terms of share buyback have been met in this BRI corporate action
"Our shares are undevaluated and then not only that, so undervalued and we also want BRI workers to work hard and contribute to their banks for stakeholders, communities, MSMEs and the state, they are worthy of being encouraged by owning BRI shares," explained Sunarso.
Sunarso added that the total shares owned by BRI workers were only 1 percent of the total so that the company could carry out this corporate action.
"And now the total shares owned by employees have not reached 1 percent. Still below 1 percent for BRI's SEED bank and BRI's profit. I don't think there's anything wrong with hundreds of thousands of employees owning 1 or 2 percent of shares," explained Sunarso.
It is known that through the disclosure of information published on February 2, 2023, the share buyback by BRI was carried out in a large amount of IDR 1.5 trillion, and can be carried out in stages or at once. This buyback process is completed no later than 18 months after the date of the AGMS in 2023.
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