BRI Prepares Rp3 Trillion for Share Buyback to Sustain Long-Term Performance
Rhea-AI Summary
Bank Rakyat Indonesia (BRI) has announced a share buyback program with a maximum allocation of Rp3 trillion, following approval from its Annual General Meeting of Shareholders on March 24, 2025. The buyback, scheduled to commence in April 2025, must be completed within 12 months and can be executed through or outside the Stock Exchange.
The initiative aims to support the employee and corporate share ownership program while enhancing investor confidence amid global economic uncertainties, including US tariff policies and Federal Funds Rate concerns. The program, which has been part of BRI's strategy since 2015, is designed to boost employee engagement and long-term performance improvement.
BRI's Corporate Secretary, Agustya Hendy Bernadi, confirmed that the buyback has been carefully planned to maintain the company's financial health and complies with Financial Services Authority Regulation Article 43 of POJK No. 29 of 2023.
Positive
- Rp3 trillion allocated for share buyback program
- Program aims to enhance investor confidence
- Company maintains strong liquidity position
- Continuation of successful employee ownership program since 2015
Negative
- Market uncertainties due to US tariff policies and Federal Funds Rate
- Significant cash outlay required for buyback execution
News Market Reaction – BKRKY
On the day this news was published, BKRKY declined 4.35%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Corporate Secretary of BRI, Agustya Hendy Bernadi, stated that the BRI buyback had received approval from the Annual General Meeting of Shareholders (AGMS) held on March 24, 2025, with a maximum amount of
"The buyback will be done through or outside the Stock Exchange, either in stages or all at once, and must be completed no later than 12 (twelve) months after the date of the AGMS," explained Hendy.
As an initial stage, BRI will conduct the first period of buyback in April 2025 as part of the company's strategy to enhance investor confidence. The step taken by BRI also considers global and domestic macroeconomic conditions, including the effects of new tariff policies announced by the US President's administration and uncertainty over the direction of the benchmark rate policy, namely the Federal Funds Rate (FFR).
Hendy added that the decision for the buyback during this period reflects BRI's strong commitment to safeguarding shareholder interests amid market fluctuations. Furthermore, BBRI's buyback is also carried out in accordance with applicable regulations, including Article 43 of the Financial Services Authority Regulation (POJK) No. 29 of 2023.
"Through this corporate action, the company has carefully considered current liquidity conditions and financial position, ensuring that the buyback implementation will not disrupt BRI's financial health," he stated.
BRI has been conducting buybacks as part of the Employee, and/or Board of Directors and Board of Commissioners Share Ownership Program since 2015. This program is part of the company's efforts to encourage employee engagement toward the sustainability of the company's long-term performance improvement.
"BBRI's buyback is projected to increase the motivation and performance of BRILiaN personnel, enabling optimal achievement of targets and ultimately leading to improved company performance. On the other hand, the implementation of this policy continues to refer to applicable regulations and good corporate governance (GCG) principles," said Hendy.
For more information about BANK BRI, visit www.bri.co.id
FAQ
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