JAKARTA — Nickel mining and processing giant PT Trimegah Bangun Persada Tbk (NCKL), widely known as Harita Nickel, has announced plans to initiate a share buyback program. The company has allocated a maximum of IDR 1 trillion for this initiative, pending formal approval from shareholders during the Annual General Meeting of Shareholders (AGM) scheduled for June 30, 2026.
According to the company’s official disclosure, the buyback is slated to begin on July 1, 2026. This process will be conducted in stages over a period of no more than 12 months following the AGM approval. The total allocated budget of IDR 1 trillion covers the share repurchases themselves, as well as associated costs such as transaction fees and brokerage commissions.
Rationale Behind the Buyback
Harita Nickel’s Corporate Secretary, Rafika Fazrin, explained that the decision stems from the management’s belief that the company’s current stock price does not accurately reflect its true fundamental value. Despite the firm delivering strong operational performance, the market valuation remains undervalued. “The company is conducting this buyback because the current market price does not represent the real value of the firm, despite our solid performance,” Rafika stated on Monday (May 25, 2026).
Operational and Financial Stability
The buyback will be executed through the Indonesia Stock Exchange (IDX) or via off-exchange transactions. To facilitate the process, the company has appointed PT Harita Kencana Sekuritas as the brokerage firm for market regular transactions. Harita Nickel has emphasized that all funding for this program will be sourced entirely from internal cash reserves, ensuring no reliance on proceeds from public offerings or external debt financing.
Management has further reassured stakeholders that the buyback will not negatively impact the company’s ongoing operations or financial health. “This action will not affect our business or operations, as we maintain sufficient working capital to support our activities,” Rafika noted. Furthermore, the company does not anticipate any material impact on its net profit or earnings per share as a result of these repurchases.
Strategic Continuity
This move follows similar buyback authorizations granted in the 2024 and 2025 AGMs. Harita Nickel clarified that the 2026 program is distinct and will not overlap with previous initiatives; the 2025 buyback program is set to conclude on June 18, 2026, creating a seamless transition into the new phase starting in July.
In accordance with OJK Regulation (POJK) No. 29/2023, the repurchased shares may be utilized through various mechanisms, including resale on or off the exchange, capital reduction, the settlement of specific transactions, equity-linked instrument conversions, or distribution to shareholders in a proportional manner.
Disclaimer: This article is for informational purposes only and does not constitute financial advice or an invitation to buy or sell shares. All investment decisions are the sole responsibility of the reader. Bisnis.com is not liable for any losses or gains arising from investment decisions made based on this information.
Summary
PT Trimegah Bangun Persada Tbk, known as Harita Nickel, has announced a share buyback program with a maximum budget of IDR 1 trillion, subject to approval at the June 2026 Annual General Meeting. Starting July 1, 2026, the company will execute the repurchases in stages over a 12-month period to address its current undervalued market price. The program will be funded entirely through internal cash reserves, ensuring no negative impact on the company’s ongoing operational or financial stability.
The company has appointed PT Harita Kencana Sekuritas to facilitate the transactions via the Indonesia Stock Exchange or off-exchange platforms. Following similar initiatives in 2024 and 2025, this new program serves as a strategic move to reflect the firm’s true fundamental value. Depending on regulatory guidelines, the repurchased shares may be used for capital reduction, resale, or other corporate purposes as permitted by OJK regulations.