JAKARTA – PT Indika Energy Tbk (INDY) is considering a share buyback option in response to the recent decline in the Jakarta Composite Index (IHSG).

Arsjad Rasjid, President Director of INDY, believes that flexibility in the buyback mechanism, without the need for an Extraordinary General Meeting of Shareholders (EGMS), could be a strategic step to maintain stock price stability.

"Share buybacks can be a solution for issuers to protect themselves from external pressures that could cause irrational stock price drops," Arsjad said during a press briefing at the Indonesia Stock Exchange (IDX) building on Monday (3/3).

However, he emphasised that the decision to proceed with a buyback will depend on market conditions and the valuation of INDY’s stock, which is currently considered undervalued.

"We will wait and see how the situation develops. But if we decide to move forward with the buyback, why not? We believe the value is actually higher," he stated.

At the same event, Anindya Bakrie, Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), added that a buyback could provide positive sentiment to the capital market.

He noted that such action could not only boost stock transaction value but also rekindle interest from both domestic and foreign investors.

"We will review the outcomes of today's discussions and then assess the asset allocation," said Anindya.

He also highlighted that a buyback policy should not be seen as merely a short-term strategy but rather be designed for the long-term to ensure the company remains adaptive in facing market dynamics.

As of the first trading session today (4/3), INDY's stock price dropped by 1.10% to IDR 1,350 from IDR 1,365 per share. Over the past month, INDY’s share price has fallen by 16.15%. (DK/ZH)