JAKARTA (Yosefardi) – The Financial Service Authority (OJK) had in Friday last week (August 23) issued new rule allowing a listed company to launch a buy back of shares without seeking approval from shareholders for a maximum of 20% of total company’s
paid-up shares capital.
This is an effort to minimize the current significant fluctuation of capital market. A significant fluctuation means the composite index of the Indonesia Stock Exchange (IDX) dropped by 15% or more in past three consecutive trading days.
The company could launch buy back of shares after making a disclosure to IDX within 7 days since 15% price drop as ruled. The buy back would be only made within three months from date of disclosure.