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March 19, 2025 | 12:50 pm
TEMPO.CO, Jakarta - The Financial Services Authority (OJK) has announced a policy allowing publicly listed companies to buy back shares without holding a general meeting of shareholders (RUPS).
This decision is part of the regulator’s efforts to anticipate extreme fluctuations in stock market conditions.
Since September 2024, stock trading on the Indonesia Stock Exchange (IDX) has experienced a significant downturn. The Composite Stock Price Index (IHSG) has dropped by 1,682 points, or 21.28 percent, as of March 18, 2025, from its highest level recorded to date.
“In response, we have introduced a policy permitting publicly listed companies to repurchase their shares without obtaining prior approval from a general meeting of shareholders,” said Inarno Djajadi, Executive Head of Capital Market Supervision, Derivative Financial, and Carbon Exchange at OJK.
He made this statement during a press conference at the Main Hall of the Indonesia Stock Exchange (IDX) in Jakarta on Wednesday, March 19, 2025.
Under this policy, OJK classifies the current stock market conditions as “significantly fluctuating” based on Article 2, letter g of POJK Number 13 of 2023 (POJK 13/2023). According to Article 7 of the same regulation, publicly listed companies can repurchase shares without RUPS approval during such periods of volatility.
OJK has officially communicated this buyback policy to the boards of directors of publicly listed companies through an official letter dated March 18, 2025. The classification of significantly fluctuating market conditions will remain in effect for up to six months from the issuance date of this letter.
According to Inarno, this buyback option without RUPS is a policy OJK has previously implemented in the capital market sector, including in 2013, 2015, and during the COVID-19 pandemic in 2020. In practice, he explained, the policy provides issuers with greater flexibility to stabilize stock prices amid high volatility while boosting investor confidence.
“We recognize the challenges in the current market environment, but we believe that with close cooperation between regulators, market participants, and all stakeholders, we can navigate this phase successfully,” Inarno stated.
As the regulatory body, OJK will continue to monitor and evaluate market conditions periodically, ensuring that all policy measures are implemented transparently and contribute to maintaining market stability.
On Tuesday, March 18, 2025, the IHSG plummeted by 5.02 percent to 6,146, triggering a 30-minute trading halt by IDX at 11:19:31 Jakarta Automated Trading System (JATS) time.
A trading halt is a stock exchange mechanism that temporarily suspends trading to correct market imbalances, resolve technical issues, or prevent excessive index fluctuations. This measure is intended to protect investors from potential losses due to extreme price swings.
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