Indonesia, Facing Share Price Plunge, Tells State-Owned Firms to Buy Back Shares
Indonesia’s state-owned enterprises minister confirmed on Tuesday that he had asked state firms to buy back shares, which have been falling sharply.
“Yes,” Dahlan Iskan said by text message when asked by Reuters whether he had instructed state-owned companies to buy back shares directly from the market after the move was approved by financial services regulator, known as OJK.
He did not elaborate or say which companies would be involved. There are about 21 state firms listed on the Jakarta stock exchange.
His comments follow three successive days of sharp falls in Jakarta shares, triggered by central bank moves to tighten lending, concerns over the country’s widening current account deficit and broader worries hitting emerging markets in general. The rupiah and bond market have also been hit hard.