JAKARTA. PT Bank Negara Indonesia (Persero) Tbk (BBNI) plans to conduct a shares buyback with an allocated budget of IDR 905 billion.

Okki Rushartomo, Corporate Secretary of BBNI, claimed that the number of shares that will be repurchased by the company will be set to a maximum of 10% of total paid-up capital.

Rushartomo added that the shares buyback is intended to balance out the selling price in the market when Jakarta Composite Index (JSX) fluctuates. “It is also to convince investors that the company deems the current stock price not representative of the company’s improving fundamentals,” he mentioned in the information disclosure in Indonesia Stock Exchange (IDX).

For the record, the price-to-book value (PBV) of BBNI until March 8, 2023, arrived at 1.22. This position, Rushartomo added, lies below the average of 10 years worth of value at 1.40. “This condition indicates that the current company’s shares are still undervalued,” he claimed.

The management of BBNI will ask for approval during Annual General Shareholders Meeting, which is scheduled to take place on March 15, 2023. (KR/ZH)