Flooring Guide by Cinvex – , JAKARTA — Several prominent issuers in the capital market are gearing up for substantial stock buyback programs. While these initiatives can be appealing, investors are urged to carefully consider the inherent risks involved.
The latest buyback announcement comes from PT Adaro Andalan Indonesia Tbk. (AADI). The company is planning a significant stock repurchase, earmarking up to IDR 5 trillion for the program. AADI will seek shareholder approval at its Annual General Meeting of Shareholders (AGMS) on May 22, 2026. If sanctioned, the buyback could commence the following day and continue for up to 12 months.
: Adaro Andalan (AADI) Mau Buyback Saham, Siap Guyur Rp5 Triliun
This new plan follows an unfulfilled IDR 4 trillion buyback program from 2025. Despite receiving prior shareholder approval, the company recorded no buyback executions between May 23, 2025, and March 31, 2026. AADI management stated that the current corporate action aims to maintain share trading liquidity and boost the stock price to better reflect the company’s fundamental value. Additionally, the buyback is expected to enhance investor confidence and deliver optimal returns for shareholders.
: : Indocement (INTP) Siap Guyur Rp750 Miliar Buat Aksi Buyback Saham
The company assures that the buyback’s implementation will not disrupt its financial health. All funds for the repurchase will be sourced from internal cash, supported by adequate retained earnings and cash flow. Pro forma analysis suggests this action could increase earnings per share (EPS). Assuming a maximum fund utilization of IDR 5 trillion, basic EPS is projected to rise from 0.09762 to 0.10401, even as total assets and equity are estimated to decrease by approximately US$292 million each.
: : Saham ASLC Masih Undervalued, Autopedia Lestari Akan Buyback Saham
AADI also affirmed that the total number of repurchased shares will not exceed 10% of its issued and paid-up capital, nor will it reduce net wealth below regulatory minimums.
In a related development, Astra Group’s PT United Tractors Tbk. (UNTR) is also set to conduct a stock buyback, allocating IDR 2 trillion for the period from April 1 to June 30, 2026. UNTR Corporate Secretary Ari Setiyawan explained that the company’s current free float position stands at around 30.05%, which he considers sufficiently safe for a buyback. “We certainly consider the free float, and so far, the free float in the market is still quite substantial,” Ari stated on Thursday, April 16, 2026. UNTR previously repurchased shares worth IDR 1.05 trillion, acquiring 36,406,300 shares during that prior period.
United Tractors Tbk. – TradingView
Pharmaceutical issuer PT Kalbe Farma Tbk. (KLBF) has similarly announced a buyback plan valued at IDR 500 billion, scheduled from April 2 to July 2, 2026. KLBF Corporate Secretary Maria Teresa Fabiola noted that the estimated cost of executing the buyback is approximately 0.1% of the total transaction value. All purchases will be conducted through the Indonesia Stock Exchange (IDX) with the assistance of an intermediary broker. Kalbe Farma plans to utilize internal funds for this initiative.
KLBF confirmed that the buyback price would consider market conditions and regulatory provisions. The company also reserves the right to conclude the buyback period earlier, depending on market dynamics and prevailing regulations.
Temporary Catalyst
These large-scale stock repurchases are generally anticipated to provide a positive catalyst for the involved issuers. David Sutyanto, an analyst and Chairman of the Indonesian Securities Analysts Association (PAEI), views buybacks as a sentiment booster, signaling that management perceives the company’s stock valuation as attractive. “In a fluctuating market, this can act as a kind of price support,” David commented on Friday, April 17, 2026.
However, Sutyanto cautioned that buybacks are not a panacea. He emphasized that if a company’s fundamentals are robust, the effect can be quite positive. Conversely, if the issuer’s fundamentals are not strong, the buyback might only offer a short-term boost. “For issuers like United Tractors, Indocement, and Kalbe, their buybacks are relatively more appealing because they are backed by healthy cash positions. The market typically views these as more credible,” David explained.
Sutyanto also suggested that while buybacks could contribute to lifting the Jakarta Composite Index (IHSG), their impact would likely be limited. The IHSG remains more influenced by broader factors such as global sentiment, foreign capital flows, and the banking sector.
Addressing the risks, David advised investors to scrutinize the underlying purpose of the buyback. “Is it genuinely due to an attractive valuation, or merely to maintain the price? Furthermore, using cash for buybacks could impact future expansion opportunities or dividend payouts,” he added.
Concurring with Sutyanto, Muhammad Wafi, Head of Research at KISI Sekuritas, clarified that buybacks by various issuers are not intended for permanent price increases but rather serve as “downside protection” to mitigate price corrections. Wafi also stated that buybacks signal management’s belief that a stock is currently undervalued. “The most compelling buybacks to watch are AADI, backed by a jumbo fund post-Kestrel divestment, and UNTR, with its very strong operating cash flow,” Wafi noted on Friday, April 17, 2026.
Wafi similarly believes that the impact of buybacks on the IHSG is quite limited. He argued that even substantial buybacks might not be enough to significantly alter the IHSG’s direction, as “the IHSG trend remains dominated by big-cap stock movements and macro sentiment.”
For investors considering these buybacks, Wafi highlighted several key risks: execution risk, where the actual realized buyback value often falls significantly short of the maximum announced target; opportunity cost, as deploying cash for buybacks reduces funds available for business expansion or dividend distribution; and the potential for post-buyback price corrections.
Kalbe Farma Tbk. – TradingView
______
Disclaimer: This news article is not intended as an invitation to buy or sell shares. Investment decisions rest solely with the reader. Bisnis.com is not responsible for any losses or gains arising from the reader’s investment decisions.