Bukit Asam Plans Buyback as Share Price Drops 58%

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  • TEMPO.CO, Jakarta - State-owned coalminer PT Bukit Asam (Persero) Tbk. (IDX: PTBA) is planning a share buyback following a downtrend in its stock price. Since the beginning of this year, PTBA had declined by 58 percent in the stock market.

    Corporate secretary Joko Pramono said Bukit Asam has had conducted buybacks before, once in 2011 and once in 2014.

    Joko told Bisnis Indonesia on Tuseday, August 18, that PTBA's current price does not reflect the company's fundamentals. To push prices, a buyback option will be reviewed thoroughly as a corporate act.

    Another issuer mulling to buy back shares is PT Bank Rakyat Indonesia (Persero) Tbk. (IDX: BBRI). Finance director Haru Koesmahargyo said the bank is currently reviewing its stock price to see whether it has gone undervalue amid the stock market fluctuation.