State-Owned Banks Launch Major Buyback Programs to Boost Market Confidence

Strategic Move to Stabilize Market Volatility

Indonesia's state-owned banks, collectively known as Himbara, have implemented significant share buyback programs totaling Rp5.67 trillion ($367 million USD) to demonstrate management confidence in their financial strength and stabilize market volatility. The initiative involves major players such as Bank Mandiri (BMRI), BNI (BBNI), and BRI (BBRI), with buyback allocations of Rp1.17 trillion, Rp1.5 trillion, and Rp3 trillion respectively ¹

Positive Reception from Regulatory Stakeholders

The move has received positive endorsement from Fauzi H. Amro, Vice Chairman of Komisi XI DPR, who views the buyback as a strategic corporate action that demonstrates management's confidence in the banks' intrinsic value being higher than current market valuations. The program is seen as a measure to reduce market volatility and maintain investor confidence during periods of market uncertainty ¹

Market Impact and Investor Sentiment

The buyback programs are designed to provide immediate support to the banks' stock prices while signaling to investors that management believes the shares are undervalued. Corporate Secretary of BNI, Okki Rushartomo, stated that the increased buyback allocation from Rp905 billion to Rp1.5 trillion was specifically aimed at mitigating selling pressure in the market. Similarly, BRI's Rp3 trillion buyback program was approved during their Annual General Meeting of Shareholders on March 24, 2025 ¹