JAKARTA – PT Bank Negara Indonesia (Persero) Tbk (BBNI) plans to repurchase its shares, with the intention to transfer the repurchased shares to its board of directors and commissioners through the Management and Employee Stock Option Plan (MESOP).

In a public disclosure on Tuesday (18/2), the bank stated that this move is aimed at providing long-term performance- and risk-based compensation. The MESOP program is scheduled to run within three years after the share buyback is completed.

As of January 2025, BBNI’s total shares stood at 37.29 billion, with 60% held by controlling shareholders and 40% by non-controlling shareholders. The free float of the company is at 40.01%.

As reported by IDNFinancials.com, BBNI’s management has allocated IDR 1.5 trillion to repurchase a maximum of 10% of the outstanding shares. The corporate action will take place no later than 12 months after receiving shareholder approval at the Annual General Meeting on March 26, 2025.

The buyback will be funded by free cash flow from retained earnings that have not yet been allocated for other purposes.

According to the 2024 financial report, BBNI’s total assets amounted to IDR 1,129 trillion, with equity of IDR 167.18 trillion. After the buyback, its total assets and equity are projected to decrease to IDR 1,128 trillion and IDR 165.68 trillion, respectively. (LK/KR/ZH)