JAKARTA – Several state-owned banking issuers, including PT Bank Rakyat Indonesia (Persero) Tbk (BBRI), PT Bank Mandiri (Persero) Tbk (BMRI), and PT Bank Negara Indonesia (Persero) Tbk (BBNI), are set to undertake buybacks or share repurchases.

BBRI and BMRI have allocated IDR 3 trillion and IDR 1.2 trillion, respectively, for their share buybacks. Meanwhile, BBNI has allocated IDR 1.5 trillion, higher than its initial plan of only IDR 905 billion.

Although these three issuers still require shareholder approval to proceed with the buybacks, Stockbit Sekuritas Digital analysts believe this move will create a positive short-term sentiment for the share prices of BBRI, BMRI, and BBNI.

However, Stockbit Sekuritas analysts noted that the buyback funds allocated are relatively small compared to the Free Float Market Capitalisation (FFMC) of each issuer.

“We therefore believe that in the long term, the share price movements of these big state-owned banks will continue to be more influenced by the fundamental performance of the companies,” wrote Stockbit Sekuritas analysts.

As of January 31, 2025, BBRI’s FFMC stood at IDR 282 trillion, according to data from Kustodian Sentral Indonesia (KSEI). Meanwhile, BMRI and BBNI’s FFMC amounted to IDR 196 trillion and IDR 67 trillion, respectively. This puts the buyback-to-FFMC ratio at 1.1% for BBRI, 0.6% for BMRI, and 2.23% for BBNI.

Year-to-date (ytd), BBRI’s share price has declined by 1.2% as of the close of trading on Monday (17/2). Meanwhile, BMRI’s share price has dropped by 4.8% ytd, and BBNI’s share price has risen by 5.1% ytd. (KR/ZH)